AKD STOCK SMART
Weekly Review
The ongoing political instability further fueled by former Prime Minister Nawaz Sharif's controversial comments coupled with looming macro headwinds dampened investor sentiments with the benchmark KSE-100 closing at 41,624 points (-4.52%WoW). Average daily traded volumes shrunk by 31.34%WoW to 114.91mn shares with 1) FCCL (29.41mn shares), 2) BOP (27.26mn shares), 3) KEL (26.72mn shares), 4) PAEL (24.05mn shares) and 5) TRG (20.62mn shares) leading the board. Key news flows impacting the market during the week were: 1) Brent oil prices touched a high of US$80.18/bbl, for the first time since November 2014 primarily on back of strong demand and looming U.S. sanctions against Iran, 2) As per the recent SBP data, Pakistan external debt has reached to a record of US$91.8bn (30.8% of GDP) reflecting an increase of US$8.3bn in 9MFY18, 3) Total foreign exchange reserves fell to US$17.07bn (-1.3%WoW), primarily dragged by reserves held by SBP (down US$364mn) despite US$144.4 uptick in commercial bank reserves, 4) The ECC committee approved to issue policy guidelines to OGRA to enhance the Unaccounted for Gas (UFG) benchmark from 5% to 7.6% for financial years 2012-13 to 2016-17, 5) The GoP announced new measures during the budget wind up speech including the extension of export incentive package beyond June'18. While only one scrip remained positive WoW, performance leaders during the week were: 1) MCB (+0.7%WoW), 2) APL (-1.44%WoW), 3) OGDC (-1.65%WoW), 4) ABL (-2.22%WoW) and 5) HASCOL (-2.34%WoW); while laggards included: 1) LUCK (-10.23%WoW), 2), PSO (-8.69%WoW), 3) PIOC (-8.48%WoW), 4) DGKC (-8.15%WoW) and 5) ENGRO (-6.47%WoW). Foreigners continued to off-load their holding during the week, with US$19.97mn outflow compared to US$4.13mn last week.
Outlook
Market is likely to take direction from updates on the political front while clarity regarding the caretaker govt. or general election can help uplift sentiments. That said, the banking sector can gain traction in anticipation of a rate hike in the upcoming MPC meeting while oil prices climbing back to its 3.5yrs high can keep the E&P sector in the limelight.
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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