AKD STOCK SMART
Weekly Review
Despite subsiding political noise, placid sentiments over prevailing external account weakness and a lackluster results season, kept the KSE-100 lower by -2.33%WoW to close at 41,105pts. Additionally, risk-off dovishness with prolonged range-bound movements of the index led to meagre participation, with average daily volumes slipping -27.14%WoW to 134.5mn shares. Key news flows during the week were: 1) US Secretary of State during his day-long visit on Tuesday underscored the importance of Pakistan for United States and emphasized that Pakistan leadership needs to undertake "certain things" for working together as partners towards the same objective, 2) A consortium of six banks including Citi, DB, IDBC, DIB, Noor bank and SCB was approved to raise US$2bn in Sukook bonds to ease pressures on external front, 3) HUBC has secured ~Us$1.5bn in financing for CHPGC, the 1,320MW coal fired power plant, expected to come online by August'19, 4) the country's total foreign exchange reserves decreased 0.75%WoW (US$150.8mn) to US$19.9bn during the last week ended Oct 20'17, 4) GoP has so far settled PkR2bn out of PkR20bn of subsidy claims of fertiliser manufacturers pending since last year and, 5) During the outgoing week major results announcements included INDU (in-line with expectations), OGDC (in-line), PPL (slightly above expectations) and PSO (above expectation on account of receipt of penal income). Foreign participation continued to recede with FIPI resting at net selling of US$5.34mn vs. net selling of US$7.36mn last week.
Outlook
During a period of heightened news flow investors have chosen to remain on the sidelines and adopt a passive "wait and see" stance. Moreover, the confluence of mixed corporate announcements, varied earnings and receding market activity sets an ominous tone for trading momentum. That said, healthy earnings for E&P, OMC and Auto sectors went largely unrewarded, and are ripe to lead a rally in the medium term. ​
Fauji Cement is engaged in the manufacturing and marketing of cement.
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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