AKD STOCK SMAR
Weekly Review
Continuing to succumb to wider macro and policy dissonance, with looming checkpoints (IMF negotiation, MSCI review and Budget FY20) increasingly imposing "risk-off" sentiment, showcased by the KSE-100 index slipping 3.9%WoW, closing at 34,717pts. With the commence of Ramadan, softening volumes played their part in subduing wider market moves, where average traded volumes for the week stood at 73.5mn shares, falling 30%WoW. Key news flows impacting sentiment included: 1) the finance division formally announced Dr Reza Baqir of the International Monetary Fund (IMF) has been appointed governor of the State Bank of Pakistan (SBP) to serve for a three-year term, 2) GoP increased General Sales Tax (GST) and Petroleum Development Levy (PDL) rates for different products for May 2019, 3) based on news report, plans to announce the federal budget on May 22, according to a communication received at the tax bureaucracy last week have been delayed to June 11, 4) provisional GDP growth data shows that the economy is growing at a subdued 3.3 per cent growth rate, significantly short of 6.2pc growth target for the year 2018-19, and 5) total foreign exchange reserves jumped by $230 million to $15.972 billion during the week ended on May 3. The leader board during the week included: 1) ENGRO (+2.5%WoW), 2) BAFL (+1.2%WoW), 3) HBL (+1.1%WoW) and 4) PAEL (+0.7%WoW), whereas laggards were: 1) PSMC (-17.4%WoW), 2) HASCOL (-15.7%WoW), 3) MLCF (-12.7%WoW) and 4) ASTL (-10.3%WoW). Volume leaders included: 1) KEL (36.9mn shares), 2) MLCF (24.4mn shares), 3) SNGP (16.2mn shares) and 4) BOP (15.7mn shares).
Outlook
As weeks with many surprises unfold, some clarity on policy formation, particularly salient features of IMF negotiations with accompanying time frames could bring a sliver of confidence to otherwise rattled markets. With a slew of challenges ahead, Budget FY20 is shaping up to be a tough one, while upcoming MSCI review could be a non-event (largely from index continuity provisions) auguring well for slow consolidation in equity markets over the coming weeks. ​
AKD Research
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.
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