Report
Team AKD Research
EUR 13.06 For Business Accounts Only

AKD STOCK SMART

Weekly Review

Political noise emanating from SC declaring Nawaz Sharif ineligible to continue as party head, along with new flows alluding Pakistan to be added on terrorist financing watch list by FAFT from Jun'18, eroded investor confidence with the KSE100 index losing 360pts (-0.8%WoW) to close the current week at 43,267pts. That said, increasing oil prices (Brent: +2.3%WoW) along with higher than expected reserves size for Jhandail kept index heavy Oil & Gas sector (particularly POL) in limelight whereas clarity on Senate elections allayed concerns on postponement of General elections. Average daily traded volumes shrank 7.46%WoW to 183.94mn shares with 1) ANL (61.55mn shares), 2) DSL (61.40mn shares), 3) TRG (51.09mn shares), 4) LOTCHEM (42.60mn shares) and 5) FFL (40.25mn shares) leading the board. Key news flows impacting the market during the week included: 1) current account deficit widened to US$9.156bn (up 48%YoY), reflecting mounting pressure of trade deficit up by 24%YoY, 2) European Parliament's Committee on International Trade (CIT) passed the GSP+ scheme, enabling Pakistan to enjoy preferential duties on exports for the next 2 years, 3) Pakistan's foreign exchange reserves fell to US$18.829bn, with the reserves held by central bank fell by US$130mn (1.1%WoW) attributable to external debt servicing, 4) WB announced debarment of PEL in connection with collusive practice on contracts under the WB financed electrical distribution and transmission projects, 5) BOI and EDB both have agreed to recommend Ghandhara Nissan investment plan as Brownfield under the new auto policy. Performance leaders during the week were: 1) POL (+10.0%WoW), 2) KAPCO (+4.1%WoW), 3) LUCK (+2.5%WoW), 4) FATIMA (+1.3%WoW) and 5) EFOODS (+1.1%WoW); while laggards included: 1) PIOC (-8.9%WoW), 2), MLCF (-6.7%WoW), 3) FCCL (-6.5%WoW), 4) NBP (-4.4%WoW) and 5) KEL (-3.6%WoW). Foreigners continued to off-load their holding, selling stocks worth US$2.78mn during the week.

 

Outlook

We expect the market to take direction on developments pertaining to 1) upcoming Senate elections (scheduled on Mar 3'18), 2) decision on corruption references against the Sharif family drawing close, 3) FTSE rebalancing scheduled on Feb 28'18 and 4) clarity on inclusion of Pakistan in FATF grey list. Additionally, key result announcements for next week include GWLC, PPL, NCL, BAFL, SEARL, & SNGP can keep the respective scrips in limelight.

Provider
AKD Securities Limited
AKD Securities Limited

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.

Analysts
Team AKD Research

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