EUR 8.90 For Business Accounts Only

AKD STOCK SMART

Largely fragile trading coupled with muddled short term sentiments, despite US$ inflows from 'friendly countries' and headway on negotiations with the IMF, the KSE-100 index remained turbulent, closing the week at 38,251pts moving -0.15%WoW. Increased clarity on points of contention between the IMF and Pakistan's negotiations over an additional facility with FX support in the form of previously pledged US1bn from Saudi Arabia and financing facility worth US$3bn from the UAE failed to raise participation (average daily turnover for the week fell 13.4%WoW) and fermented bearish sentiment. Other news flows included: 1) a bit of a commotion was caused at the of 'withdrawal of public announcement of intention (PoI) to acquire 18,336 mn shares or 66.40 per cent stake in K-Electric Ltd by Shanghai Electric Power Company Ltd', where a fresh PoI is highly likely, 2) in a meeting of senior representatives of different Islamic banks on matters pertaining to the launch of Islamic Sukuk by the GoP's power sector holding company, while the Economic Coordination Committee (ECC) of the Cabinet has reportedly directed Power Division and Finance Division to prepare a joint plan for raising PkR300bn Islamic financing by mortgaging Discos' assets, and 3) the country's liquid foreign exchange reserves increased by US$831mnWoW, mainly due to arrival of US$1bn from Saudi Arabia with total liquid forex reserves at US$14.584bn as on Dec 14th while the UAE's Abu Dhabi Development Fund reportedly pledged to keep US$3bn in the SBP's coffers. Key performers over the week were: 1) MLCF (+6.9%WoW), 2) KEL (+6.6%WoW), 3) ABL (+5.6%WoW) and 4) APL (+5.2%WoW), while laggard included: 1) PPL (-8.8%WoW), 2) POL (-7.6%WoW), 3) HBL (-5.8%WoW) and 4) PSMC (-5.3%WoW). Volume leaders on the basis of average turnover during the week were: 1) KEL (59.4mn shares), 2) BOP (32.4mn shares), 3) PAEL (30.8mn shares) and 4) EPCL (26.8mn shares).