AKD STOCK SMART, Aug 10, 2018
StockSmart
Weekly Review
Grappling with weaker than expected earnings reads, void of major beats or unexpected positivity, investors tilted towards a "risk-off" outlook, ferrying the KSE-100 index to close at 42,842pts +0.7%WoW. Volumes staggered, largely inconsistent with mid-earnings season activity receding 26.6%WoW to average 208.2mn shares/day. Key news flow driving sentiment included: 1) Pakistan plans to borrow more than $4 billion from the Saudi-backed Islamic Development Bank (IDB) as part of its attempts to restore dangerously low stocks of foreign currency, reported through a foreign business journal with the Jeddah-based bank yet to make a formal offer, 2) Caretaker Prime Minister Justice Nasir-ul-Mulk has formally recommended August 13 (Monday) for the first session of the National Assembly in the summary sent to the President, 3) A bipartisan group of 16 US senators urged the Trump administration to block the IMF from bailing out countries that have obtained loans from China under its infrastructure development plan mentioning Pakistan among countries that have accepted billions of dollars in loans from China, and 4) Asad Umar, the likely finance minister has stated an aim, to separate economic matters from politics, vowing on Tuesday to give administrative independence to key government institutions and public sector enterprises, through the formation of a sovereign wealth fund, in a bid to turn around their fortune. Stocks driving performance at the bourse included: 1) INDU (+12.2%WoW), 2) MLCF (+9.6%WoW), 3) PIOC (+8.9%WoW), and 4) LUCK (+7.2%WoW), whereas laggards during the week were: 1) PSMC (-3.2%WoW), 2) HASCOL (-2.6%WoW), 3) NBP (-2.4%WoW) and 4) POL (-1.5%WoW). Volume leaders at the bourse were: 1) LOTHCEM (70.4mn shares), 2) PAEL (63.9mn shares), 3) EPCL (43.6mn shares), and 4) FCCL (41.4mn shares).
Outlook
Earnings are expected to continue driving sentiment as index blue chips PSO, ENGRO, and APL announce results. Additionally, the shorter trading week (off on Tuesday due to Independence day) in the run-up to Eid-ul-Adha may lift volumes, raising individual investor participation in retail favorites. Commencement of national assembly and provincial legislatures, coupled with formation of Government at the center should give wider direction to investor expectations. ​
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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