AKD STOCK SMART
Weekly Review
Political uncertainty including ongoing accountability court’s proceedings in the trial against the Sharif family and developments surrounding Senate Chairman Election continued to take a toll on market performance. Moreover, international lenders (namely IMF and Standard Chartered Bank) raising concerns over macroeconomic stability have further dampened the market sentiments, with benchmark KSE-100 index losing 1.67%WoW (-729pts) to close the week at 43,011pts. Trading activity at the bourse remained weak, where avg. daily trading volume contracted to 152.05mn shares (down 16.07%WoW). Key news flow impacting the market during the week included: 1) Federal gov’t extending the tenure of Accountability Court-I Judge Mohammad Bashir, who is currently hearing corruption references against Sharif family, 2) cement sector registering 11%YoY dispatches growth in Feb’18, with 8MFY18 cement offtake reaching 30.10mn tons (up 14%YoY), 3) SC temporarily allowing the federal gov’t to collect recently imposed regulatory duty until its final decision (previously halted for a brief period by Sindh High Court), 4) ECC approving a plan to obtain PkR80bn of bank loan to retire part of the longstanding power sector’s circular debt and 5) foreign reserves falling by US$84mnWoW to reach at US$18.33bn during the week ended Mar 02’18. Performance wise, CHCC (+6.84%WoW), EFOODS (+5.53%WoW), FFC (+5.25%WoW) and HASCOL (+4.58%WoW) were major gainers in the AKD Universe, while laggards included: 1) BAFL (-3.22%WoW), 2) ASTL (-1.89%WoW) and 3) PSMC (-0.01%WoW). Foreigners continued to offload equity stakes during the week, with net outflow of US$3.87mn compared to net outflow of US$11.38mn in the previous week.
Outlook
We expect market performance to remain range bound until clarity on political front emerges. In this regard, Senate Chairman Election scheduled on Mar 12’18 should tone down some of the concerns. However, accountability court proceedings in corruption references against Sharif family could keep a lid on market performance. Additionally, news flows regarding upcoming budget can trigger sector-specific performance.
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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