AKD STOCK SMART, Dec 06, 2019
StockSmart
Weekly Review
Carrying on with the momentum gained in the last few weeks, KSE-100 witnessed a jubilant week, increasing by 1,444pts to 40,372pts (up3.7%WoW) — making it the 6th week in a row to have closed in positive. Improved macroeconomic conditions, particularly trade and current account balance, provided the initial push which was followed by Moody's changing Pakistan's outlook, to stable from negative, creating euphoria in the market and particularly banks. Though profit-taking and increasing coal prices weighed on cement stocks which dented the overall sentiment as well in second trading session of the week, market gained strength and even overlooked a higher than expectations CPI reading (12.7% vs. expectation of 12.3%), marching on to breach the 40k mark. Other news flow impacting the market included i) State Bank of Pakistan (SBP) announced to hold auctions of various maturities of the market treasury bills and Pakistan Investment Bonds (PIBs) worth PkR2.85tn in next three months of FY20, and ii) State Bank of Pakistan paying USD1bn against sukuk (Islamic bonds), which was launched in November 2014 and matured on Dec 2. Activity during the week was at record levels with average daily volume standing at 467mn, up 38%WoW while foreigners remained net buyers (Net inflow at USD1.1mn vs. outflow of USD8.1mn last week). Top performers in AKD Universe were, i) PSMC (+21.86%WoW), ii) ABL (+12.12%WoW), iii) KEL (+11.90%WoW), iv) FCCL (+8.49%WoW), and v) NBP (+8.05%WoW), while laggards were, i) KAPCO (down 7.00%WoW), ii) GWLC (down 6.85%WoW), iii) HASCOL (down 6.72%WoW), iv) ENGRO (down 4.42%WoW), and v) PIOC (down 1.74%WoW).
Outlook
The expectations regarding beginning of monetary easing in near term will continue to drive the market, in our opinion where end of year adjustments by funds can spur activity in select stocks. However, after witnessing a rally of 14% in last one month, some cooling off cannot be ruled out as investors look to book profits. On the other hand, foreign activity may remain muted as we move closer to Christmas. In medium term, we believe, market will set its sight on the upcoming review of FATF where speculations regarding the outcome can keep market volatile. ​
AKD Research
Hascol Petroleum Limited is a Pakistan-based company, which is engaged in procurement, storage and marketing of petroleum and related products. The Company is involved in the sale of petroleum products, such as fuel oil, high speed diesel, gasoline, Jet A-1, liquefied petroleum gas (LPG) and lubricants. The Company offers products, such as Tiger Super, Rocket Diesel and Furnace Oil. The Company offers Fuchs Lubricants products, which include corrosion preventives, quenching oils, industrial lubricants, open gear lubricants, greases, automotive oil and metal working fluids. The Company also markets LPG as an automotive fuel through its retail network. The Company is engaged in owning, leasing and renting oil storage facilities, as well as importing petroleum products. The Company has storage facilities at Machike, Shikarpur and Daulatpur. The Company sells its product to dealers, government agencies and autonomous bodies, independent power project and other corporate customers.
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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