Oil prices expected to hit $ 150 / barrel in 2022 – Journal

KARACHI: The price of oil in 2022 is expected to more than double to $ 150 a barrel, said Dr Salman Ahmed, head of macro and strategic asset allocation at Fidelity International, a global investment management firm.

Speaking at KTrade’s annual investor summit on Thursday, Dr Ahmed said there had been no investment on the supply side for the past seven years as demand for oil declined “very gradually. “.

“The offer is quickly under pressure. We believe that oil must increase to [its] falling demand … It’s a very competitive environment for oil consumers. Prices will remain high to encourage people to move away from oil, ”he said.

Expert says past seven years have seen no investment in procurement

Speaking to attendees, KTrade Securities Managing Director Saad Bin Ahmed said valuations on the Pakistan Stock Exchange (PSX) were hovering at 2001 levels.

The KSE-100 index trades at a multiple of between 4.5 and five, he said referring to the price-to-earnings ratio which shows the stock prices of companies listed on the PSX are currently undervalued. relative to their earnings per share.

The benchmark index trades at a 50% discount from its historical eight-year 10-year average, he said. “We expect the index to climb to 53,000 points in 2022,” he added. This means that KTrade Securities – a brokerage that claims to have the most downloaded investment mobile app with over 200,000 registered users – sees a 20% increase in 2022 from the current level of 43,000 to 44,000. points. “We are forecasting earnings growth of 12pc and a dividend yield of 6pc. ”

He added that the index has the potential to be reassessed once the problems with the cash-strapped energy chain are resolved. Referring to the recent energy tariff revisions, the clearance of claims of independent power producers and the allocation of Rs 100 billion to the transmission grid, he said the profits of the companies owned by the energy chain have high growth potential.

The depreciation of the currency and rising interest rates have “dramatically increased the cost of owning a car,” which will lead to lower demand for automobiles in 2022.

However, commercial banks will emerge as the main winners due to a sharp rise in lending rates.

Posted in Dawn, le 17 December 2021

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Felix J. Dixon