AKD STOCK SMART
Weekly Review
Continuing from the close of last week, index started the week on a negative note and remained on the trajectory, ending the week at 40,487pts, down -1%WoW. Even the hint by Finance Minister of opting for an IMF program could not cheer the investors as they preferred to book profits after the index posting an increase of ~10% in Jan'18. Declining coal prices (down 11% since start of Dec'19) invigorated euphoria among cement stocks in the early part of the week, however, some selling was witnessed in the latter half as profit taking took effect. Inflows of US$1.6mn depicted muted foreign interest while the average daily turnover stood at 125mn, down 34.7%WoW. Key news flows impacting the market during the week included i) the Government reportedly deciding to take up to US$6 billion loan from the International Monetary Fund (IMF), ii) Pakistan and Saudi Arabia likely to ink three major Memorandum of Understanding (MoUs) amounting to over US$10 billion during the upcoming visit of Saudi Prince, iii) exports during 7MFY19 witnessing an increase of 2.24% to US$13.2 billion, iv) Moody's Investors Services changing its outlook for the banking system in Pakistan to negative (B3 negative) from stable, and v) Taliban saying that their negotiators would meet US envoys for talks this month in Islamabad, and will also sit down with Prime Minister Imran Khan to discuss Afghanistan. Key performers over the week were: i) CHCC (+5.36%WoW), ii) DGKC (+5.01%WoW), iii) KEL (+2.35%WoW), iv) KAPCO (+2.29%WoW) and v) OGDC (+1.74%WoW), while laggards included: i) PSMC (-7.02%WoW), ii) PSO (-7.02%WoW), iii) HBL (-3.29%WoW), iv) APL (-2.95%WoW) and v) EFOODS (-2.91%WoW).
Outlook
Upcoming visit of Saudi Prince is expected to keep the investors excited for the week as major investment deals are expected to be signed. Moreover, continuation of result season will also keep the activity uplifted in selected stocks where some blue chips like PSO, UBL, MCB, ENGRO are expected to announce their results. However, we advise investors to keep a close eye on rising geopolitical tensions as any escalation can take a toll on the market.
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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