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Sector Rotation Under Capital Preservation
Instead of chasing returns, capital rotates toward stress-absorbing sectors.
Banking: Cash Flow Over Growth
Banks remain central to PSX not because of rapid expansion, but because:
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High rates support net interest margins
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Balance sheets are visible
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Dividend capacity remains strong
However, banking stocks no longer represent pure upside plays. They function as capital anchors—absorbing volatility rather than amplifying it.
This distinction is crucial for expectations.
Energy & Power: Policy-Weighted Stability
Energy and power sector stocks continue to attract institutional capital due to:
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Regulated returns
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Sovereign-linked cash flows
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Predictable tariffs (with delays, but visibility)
While operational inefficiencies remain, capital favors predictability over perfection in stressed economies.
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