<ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Pakistan Oil Marketing Companies (OMCs) witnessed a distressing FY19 where the industry&rsquo;s sales clocked in at 18.3mn tons, down 25%YoY. This decline was on the back of economic slowdown in the country coupled with smuggling of products from Iran. In FY20 the macroeconomic adjustments will likely weigh in on economic growth and reduce consumer spending, which would keep the demand for retail fuels in check. Furthermore, high interest rates and currency depreciation will weigh in on the sector profitability. A possible respite may come from revision in margins since inflation is expected to further accelerate. Incorporating these factors we have a &lsquo;Market weight&rsquo; stance on the OMC sector where we revise down our TPs for PSO to PKR2...
