AKD STOCK SMART
Weekly Review
Last day rebound (+1.3%), due to renewed optimism on economic front driven by cabinet reshuffle, improved overall picture for the week (KSE-100 index closed flat WoW at 37,292pts, -0.12%WoW). Average volumes for the week stood at 175.7mn shares vs. 148.36mn shares the previous week. Positive news flow of expected signing of agreement with IMF in late April/early May with policy level agreement between authorities and IMF failed to reinvigorate interest in the market, as delays in Amnesty scheme and consultations on implementing Treasury Saving Account (TSA) to consolidate government deposits in Central bank, overshadowed the positives. However, clarification from SBP that no TSA policy would be implemented without taking the banking sector onboard, improved investor sentiment with Banks gaining 1.2% on the last trading session. Amongst the major performers, Cable and Electrical goods segment was up 2.0% followed by Auto assemblers (+1.7% as launch of new models/uplifts were cherished by investors). Within major sectors, Cement was down 1.5%WoW as rumors surrounded further weakness in cement retail price as expansions come online amid weak demand. Top performers in AKD universe were, i) PSMC (+15.5%WoW) , ii) FFC (+5.22%WoW) , iii) PAEL (+4.89%WoW) , iv) UBL (+4.15%WoW), and v) HBL (+2.38%WoW), whereas laggards were, i) CHCC (down 15.41%WoW) , ii) PIOC (down 12.63%WoW) , iii) HASCOL (8.08%WoW) , iv) HMB (down 4.50%WoW), and v) GWLC (down 4.06%WoW).
Outlook
The market during the upcoming week is expected to be dominated by further news flows regarding development on IMF program and Amnesty scheme, and the result season. Major results of companies lined-up for next week are of EPCL, PSMC, UBL, MCB, HBL, MLCF, ENGRO, CHCC, and INDU. With market P/E at 7.8x, we advise investors to take a longer term view where any correction should be taken as an opportunity to accumulate. Our preferred plays tread towards the Banking and Energy sectors where top picks include MCB, MEBL, HUBC and OGDC.
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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