AKD STOCK SMART
The week started off a negative note, with the market falling by about 1000 points on broad expectations of a negative budget, with market anticipating significant taxation measures to be adopted. However, the market pared losses in the remaining sessions of the week as market murmurs regarding deployment of market support fund gathered pace. Consequently, the benchmark KSE-100 closed at 35,573 points, flat WoW. Volumes remained on the lower side with average daily turnover (ADT) at 136.4mn shares, down 13.0%WoW. Contrary to broader expectations, Budget’19 was headline equities positive despite sectoral developments amid GoP’s efforts to increase its tax base. Key highlights of Budget’19 from market’s standpoint included i) continuation of CGT at 15%, ii) freezing of corporate tax rate at the current level of 29%, iii) abolishment of tax credit for BMR investment, iv) increased tax rates on profit on debt and v) bringing of capital gains on property sale under normal tax regime. The latter two hold particular value for equities and may result in potential switchover from fixed come investment into equities while tax incentives may shift preference for new investment from real estate to equities as a preferred investment vehicle. The leader board during the week included: 1) FFBL (+11.4%WoW), 2) PIOC (+9.8%WoW), 3) FFC (+9.2%WoW) and 4) CHCC (+8.9%WoW), whereas laggards were: 1) PSMC (-5.3%WoW), 2) PSO (-4.6%WoW), 3) NBP (-4.4%WoW) and 4) HASCOL (-3.6%WoW). Volume leaders included: 1) KEL (47.5mn shares), 2) MLCF (43.5mn shares), 3) BOP (42.8mn shares) and 4) TRG (37.5mn shares).
Outlook
With clarity and understanding emerging over budgetary proposals, we expected market to find its foothold in the upcoming sessions. That said, volatility in exchange rate would likely act as a caveat to our thesis with the PkR already devaluing by 4.9% in the outgoing week. From this context, currency sensitive sectors including Power, E&Ps and Textiles (despite negative budgetary developments) may remain 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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.