Stock Smart Weekly (Jan 03, 2020)
StockSmart
Weekly Review
Meeting the new year on an exuberant note, with market expectations of economic stability crystallizing, the KSE-100 index climbed 3.6%WoW to close at 42,323pts. A macro picture largely in line with street expectations (CPI for Nov’19 amounted to 12.6%), reserves on the mend (30-month high of US$11.5bn) and a consolidating political picture around the question of legislative amendments to the Army Act fueled investor participation (average daily volumes up 22.6%WoW to 281.8mn shares). Major news flows during the week included: 1) the GoP through a presidential ordinance on Wednesday introduced significant changes to tax laws to implement concessions promised to traders, reduce duty on import of low-value mobile phones, remove limit on intercorporate dividend tax relief and penalise currency smugglers, 2) The GoP on Tuesday increased fuel prices for January, raising the petrol price to PkR116.60/ltr with the increase of PkR2.61/ltr, while approving the recommendations made OGRA, 3) FBR has collected PkR2,080bn during the first half year as against the target of PkR2,198bn projected for the same period, but up 16.95%YoY, and 4) NEPRA increased KEL’s tariff by 38 per cent or PkR4.87/KwH to PkR17.69/KwH for 11 quarters from Jul–Sep 2016 to Jan–Mar 2019 under quarterly adjustment formula. Top performers from the AKD Universe were: 1) LUCK (+10.2%WoW), 2) PAEL (+9.7%WoW). 3) FFBL (+8.9%WoW) and 4) PSO (+8.6%WoW), and 5) ASTL (+8.3%WoW) whereas downward movement was limited to ABL (-0.4%WoW). Volume leaders during the week included: 1) TRG (avg. daily volume of 23.8mn shares), 2) UNITY (20.8mn shares), 3) KEL (20.2mn shares) and 4) PAEL (16.3mn shares).
Outlook
Geopolitical concerns are expected to dominate headlines overt the coming week, where the US decision to target senior Iran military leaders in Iraq early Friday, have already rattled crude markets (Brent/WTI up US$2.6/2.4/bbl). As global market activity picks up and the mid Jan’19 MPC decision takes center stage, some consolidation is likely in the weeks ahead.
Fauji Fertilizer Bin Qasim Limited is a Pakistan-based holding company. The Company manufactures, purchases and markets fertilizers. It is involved in meat, dairy and coal based energy generation sectors. It has identified its potential business segments and has undertaken investments in the areas of food, financial, power sector and wind energy projects. Its products include Granular Urea, such as Sona Urea, and Di Ammonium Phosphate (DAP), such as Sona DAP. Sona Urea is a synthetic organic compound containing nitrogen in amide form available in the form of white solid prills. It is applied to soil and also suitable in solution form as spray application. Sona DAP contains nutrient element, phosphorous besides nitrogen available in flowing granular form Granules are stronger, harder and of uniform size. It is suitable for various crops and soils recommended for initial application. It produces over 791,260 metric tons (MT) of DAP and approximately 433,610 MT of Urea.
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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