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AKD STOCK SMART, Mar 13, 2020


Weekly Review                                

The KSE-100 index underwent gyrations largely from a trifecta of risks, including the opening salvo in global crude price war (Brent/Arab Light falling ~30%, recovering ~6%) initiated by Saudi Arabia following the breakdown of OPEC+ talks, spread of COVID-19 (flagged by the WHO as a global pandemic) and US$ jumping 3.2% against the PkR, pulling the benchmark index lower by 5.7%WoW to close at 36,061pts. Major news flow driving market sentiment included: 1) the Chief of Army Staff on Thursday urged all concerned parties to gear up preparations to counter the coronavirus, a statement issued by the Inter-Services Public Relations (ISPR) said that the situation with regard to COVID-19 and the preventive measures taken by the Pakistan Army were discussed, 2) SBP data indicated that foreign investors have divested US$972mn from their investments in the government securities including Market Treasury Bills (T-Bills) during FY20 where cumulative divestment from T-bills during the first eleven days of March’20 stood at US$625mn, 3) The World Health Organization on Wednesday declared the novel coronavirus outbreak a pandemic adding that the virus has found a foothold on every continent except for Antarctica, and 4) The Lahore High Court has ruled that the financial institutions are not required to obtain a decree from banking court to sell mortgaged properties for recovering defaulted loans. KSE-100 average traded volumes during the week grew 9.0%WoW to 234.3mn shares with stocks generate large volumes during the week included: 1) MLCF (110.5mn shares), 2) FCCL (101.1mn shares), 3) BOP (100.3mn shares) and 4) KEL (62.1mn shares). Gainers amongst our coverage universe were: 1) PIOC (+17.4%WoW), 2) CHCC (+9.8%WoW), 3) INDU (+6.8%WoW) and 4) NCL (5.0%WoW), whereas laggards dragging the index lower were: 1) POL (-21.2%WoW), 2) PPL (-16.0%WoW), 3) BOP (-12.3%WoW), and 4) MEBL (-12.1%WoW). 



Macro data points awaited during the coming week include SBP’s International Reserve and Foreign Currency liquidity levels and PBS disclosing LSM index activity for the month of Feb’20. With the market in a clear depression (down 11.5%CYTD, ~17% from 13th Jan peak), value seekers with distant investment horizons may be lured to build ‘buy- and-hold’ positions in select sectors (Chemicals, Auto parts, Cable & electrical, Technology).

AKD Research 

Fauji Cement

Fauji Cement is engaged in the manufacturing and marketing of cement.

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.

Team AKD Research

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