AKD STOCK SMART, Aug 17, 2018
Weekly Review
Remaining volatile for most part of the week (KSE-100 index lost 881pts during first three sessions), market made decent recovery on the last trading day of the outgoing week (+486pts) to close at 42,447pts (down 0.92%WoW). Fitch Ratings raising concerns about Pakistan’s economic challenges and IMF program coupled with news regarding legal actions against cement companies and Mansha group, weighed on overall investor’s sentiment, despite higher than expected payouts from Attock group of companies (APL, ATRL, POL & ACPL announced 20% bonus issue). Average daily traded volumes at bourse also declined by 22.58%WoW to 161.22mn shares with 1) BOP (52.5mn shares), 2) PAEL (34.7mn shares), 3) UNITY (29.8mn shares), 4) LOTCHEM (28.1mn shares) and 5) WTL (27.3mn shares) leading the board. Major news highlights during the week were: 1) IMF ruled out the possibility that it would deny Pakistan a bailout package under US influence, 2) Overseas Pakistani workers remitted US$1.93bn in Jul’19 compared to US$1.54bn received in Jul’17, 3) PAMA released sales data for Jul’18, where car and light commercial vehicle (LCV) sales depicted 9%YoY growth to 21,344 units, 4) PBS data showed that Pakistan’s trade deficit widened by US$3.19bn during Jul’18, where exports went up by 1.8%YoY while imports declined by 15%YoY and 5) SBP revealed that Pakistan’s foreign debt and liabilities soared by 14%YoY to US$95.1bn in FY18. Performance leaders from AKD universe during the week were: 1) APL (+5.38%WoW), 2) PSO (+2.64%WoW), 3) ABL (+1.69%WoW) and 4) FFC (+1.22%WoW); while laggards included: 1) PSMC (-7.08%WoW), 2) HBL (-5.72%WoW), 3) DGKC (-5.29%WoW), 4) GWLC (-4.79%WoW) and 5) PIOC (-4.67%WoW). On the other hand, foreigners remained net sellers during the week, with net outflows of US$6.55mn compared to US$38.63mn outflows in the preceding week.
Outlook
Smooth transition of National and Provincial assemblies with Imran Khan comfortably becoming 22nd Prime Minister of Pakistan will be key highlight of the upcoming week, strengthening investor’s sentiment. Moreover, market will continue to take direction from the ongoing results season where major companies scheduled to announce financial results next week include FCCL, PKGS, DAWH, FABL and INDU.
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.
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.