Pakistan Economy_SBP signals an end to tightening
- In a pre-emptive move, the Monetary Policy Committee (MPC) has raised the policy rate by another 100bps to 13.25%, accommodating expected inflationary pressures arising from recent Rupee depreciation, fiscal and utility rate adjustments.
- Interestingly, the Monetary Policy Statement carries a pretty ‘dovish tone’, signifying the tightening cycle reaching its peak. The same is also evident from rather soft central bank’s inflation expectations and real GDP growth estimates for FY20.
- While parallel fiscal tightening complemented by the bar on federal borrowing from the SBP allows the central bank to soft pedal on the monetary front, we look forward to upcoming inflation readings (i.e. 1QFY20) and market participation in the upcoming T-bills/PIBs auction to draw conviction on the end of tightening cycle.
- The end is nigh with clarity beginning to emerge on economic steps and concurrent results—with an interest cycle crest being the first. SBP’s discourse on completion of adjustment program should provide the investment community with much needed confidence where Pakistan’s undemanding valuation set (P/E: 6.7x, D/Y: 8.2%) appears a bargain.
- The KSE-100 should ideally cheer the latest MPS where preferred sectors / scrips include Banks (MCB, MEBL), Oil (OGDC, PSO), Textiles (NML) and Power (HUBC).
Earnest Investments Holdings Limited is a Hong Kong-based investment holding company principally engaged in the investment and trading of listed and unlisted securities. The Company invests in APAC Resources Limited, China Dynamics (Holdings) Limited, New Times Energy Corporation Limited, Tencent Holdings Limited and Hong Kong Exchanges and Clearing Limited, among others.
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.