Report
Team AKD Research
EUR 13.92 For Business Accounts Only

AKD STOCK SMART, Feb 21, 2020

StockSmart                       

Weekly Review                                

Amid uncertainty on the macro front (read IMF and FATF), KSE-100 remained lackluster, closing the week at 40,249 points, flattish WoW. The GoP continued to push for deferral of additional tax measures and energy tariff hikes till the next fiscal year amid backlash on inflationary pressures (Jan’20 inflation hit multi-year high of 14.6%). However, the newsflow indicated a lack of favorable response from the IMF. Meanwhile, FBR began its exercise on how to generate PKR200bn additional taxes, without further stifling the economy. On the other hand, news on FATF front remained comparatively positive, where Pakistan managed to increase compliance on 9 more points, taking full-compliance to 14 out of 26 points. As per news flow, the FATF will issue a formal statement on Friday (today) on conclusion of the group meetings and plenary from Feb 16 to 21, in which Pakistan is expected to receive another four months time (until June 2020) to achieve full compliance with its 27-point action plan and secure exit from the FATF grey list. The average turnover during the week – 106mn shares, down 36.5% WoW - reflected the uncertainty among investors. Other newsflow that impacted the market included: (i) December data shows rebound in large-scale manufacturing, (ii) Hot money inflows cross $3bn, (iii) PTI govt all set to borrow Rs200b from Islamic banks, (iv) 1HFY20 FDI posts 66% growth, (v) GIDC collections come under scrutiny as court questions fate of funds, (vi) CAD shrinks 72% in 7MFY20, (vii) UAE regulator to investigate Pakistan bank for money laundering, (viii) Gas, electricity rates frozen till June and (ix) two fertilizer plants approach MoI&P for early approval. Top performers during the week included APL (+5.53%WoW), KAPCO (+5.02%WoW) and PAEL (+4.90%WoW), while PSO (-3.44% WoW), ENGRO (-2.93%WoW) and NCL (-3.36%WoW) remained the worst performers. Major volume churners included UNITY (65mn shares), DGKC (35mn shares), HASCOL (33mn shares), MLCF (26mn shares) and BOP (21mn shares).

 

Outlook

Market activity will pick up contingent upon official statement on FATF expected over the weekend, and easing off of inflationary pressures. Important result announcements in upcoming week include: HUBC, PREMA, UNITY, OGDC and ASTL.

AKD Research 

Underlying
D.G. Khan Cement Co.

Co. is engaged in the production and sale of Ordinary Portland and Sulphate Resistant Cements.

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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