Report
Team AKD Research
EUR 13.92 For Business Accounts Only

AKD STOCK SMART

Weekly Review                                

Managing to hold back gains made during the beginning of the week, the KSE-100 index closed at 34,190 pts rising 288pts ending the first week of FY20 up 0.9%WoW. Additionally, the drastic weakness in volumes (down 40.9%WoW to average 86.6mn shares) over the week was particularly indicative of investor apathy. With approval from the IMF executive board for the proposed US$~6bn EFF external financing support over the next three years (accompanied by release of US$1bn), investor sentiment see-sawed as regulatory action to curb un-registered transactions, including SECP's recently approved Search And Seizure Rules raised apprehensions. Key news flows during the week included: 1) IMF Executive Board approved the US$~6bn three year Extended Funding Facility allowing for the release of the initial US$1bn and monitoring of macro indicators for further release of funds, 2) planned roll-out of the new petroleum policy with concession for high risk fields and 35 additional blocks to be put up for bidding, 3) Federal Cabinet approved the Search and Seizure rules for the SECP, the apex securities regulator, affording its officers the authority to conduct raids, seize evidence and secure search warrants, and 4) ADB and WB approved ~US$2.2bn in financing for projects in Karachi, including mobility enhancements. Key performers from the AKD Universe included: 1) NBP (+9.8%WoW), 2) FFC (+8.7%WoW), 3) FFBL (+4.9%WoW) and 4) HBL (+4.9%WoW), whereas laggard during the week were: 1) EFOODS (-7.3%WoW), 2) HASCOL (-6.8%WoW), 3) ASTL (-4.7%WoW) and 4) KEL (-3.9%WoW). Volume leaders at the main board included: 1) UNITY (34.7mn shares), 2) LOTCHEM (32.5mn shares), 3) TRG (28.9mn shares), and 4) KEL (28.5mn shares).

Outlook

As investors deal with the erratic nature of regulatory actions, where an announced 'crack-down' holds the potential for drastic, knee-jerk negativity, while long term externalities are still positive, the lack of cohesion between regulatory agencies may deplete sentiment over the short term. In the lead up to the end of month MPC (where AKD Research estimates further hike of 150bps), Banks offers a refuge in otherwise unruly waters.

 

AKD Research 

 

Provider
AKD Securities Limited
AKD Securities Limited

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.

Analysts
Team AKD Research

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