Report
Team AKD Research
EUR 13.25 For Business Accounts Only

AKD STOCK SMART, Jun 21, 2019

Weekly Review                                

The market performance remained choppy during the outgoing week, closing at 35,125pts, down 1.26% WoW. KSE-100 index opened the week on a weak note, as PKR continued to devalue over the weekend, taking MTD currency depreciation to 6%. In addition to that, Reza Baqir, SBP governor, held a press briefing on Monday to guide on economic outlook particularly about (i) adoption of ‘market determined’ exchange rate regime and, (ii) continued monetary tightening going forward. Furthermore, proposals regarding power and gas tariff hikes also surfaced during the week, further instigating market fears of continued pressure on macro indicators.  The newsflow during the week revolved mostly around Budget FY20 debate and economic data. Major news items included: 1) Senate Committee’s rejection of Finance Bill, while proposing for fixing exchange rate and interest rates at PkR150/USD and 12%, respectively, 2) CAD narrowing 29.3% during 11MFY19 to US$12.6bn, while May CAD declining 47/12% YoY/MoM 3) remittances jumping 10% during 11MFY19 to US$20bn, 4) launch of PKR200bn Pakistan Energy Sukuk bond II by June end, 5) FX reserves held by the central bank fell US$203mn to US$7.60bn, with total FX reserves stood at US$14.63bn. Top performers during the week included HUBC (+5.39%), ASTL (+4.20%), EFOODS (+4.2%), POL (+3.24%) and OGDC (+2.96%), while HASCOL (-10.15%), NCL (-8.17%), KAPCO (-8.13%) and FFBL (-6.73%) remained the worst performers. Average daily turnover fell 8.5% WoW to 124.8mn shares, where volume leaders included 1) MLCF (60.87mn shares), 2) WTL (46.49mn shares), 3) SMBL (39.05mn shares), 4) TRG (38.17mn shares) and 5) KEL (32.08mn shares).

Outlook

Any positive outcome (i.e. Pakistan manages to avoid blacklisting) from the ongoing FATF’s plenary session could extend the ongoing relief rally, witnessed in the last two trading sessions. At home, PTI gov’t with the wafer-thin majority could face challenging situation in getting budget approved particularly when opposition is making tough calls. The same could keep investors jittery, limiting theirs’ participation. 

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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