With a significant boost in market margins in the region of 20 to 30 percent within next one or two months and measures being introduced to sort out longstanding issue of energy sector debt, Oil Marketing Companies (OMC) such as Pakistan State Oil and Attock Petroleum enjoy a strong opportunity for their share price to outperform the KSE-100. While a seven to nine percent reduction in oil prices in monthly terms fulfills one of the requisites for margin upgrade, it is anticipated that the non-completion of formalities and approval process may take another couple of months said Fawad Khan at KASB Securities, adding that in the near term this may disappoint investors who have come to expect change in margins from June 1. This should mean a limited impact on the stock prices of PSO and APL, he added.
