Stock Smart Weekly ( Feb 04, 2021)
StockSmart
Weekly Review
KSE-100 closed the week at 46,906pts, +1.12%WoW amid volatile sessions, with heavyweight E&P sector supporting the index while profit taking was witnessed in select scrips. E&P sector turned out to be the top performer during the week (+7.0%WoW) assisted by strengthening oil prices (Brent +6.8%WoW) and removal of dividend distribution cap on MARI. As such, KSE-100 attracted higher activity with KSE-100/KSE-All volumes standing at 44.7% in the current week vs. 37.6% in the previous week. Avg. volume for the week stood at 675.4mn shares vs. 932.5mn shares in the previous week. Other key news flows for the week consists of, i) Pakistan beginning vaccination drive with first batch of 500K doses of Sinopharm vaccine arriving in Pakistan and AGP Pakistan Ltd securing Emergency Use Authorization (EUA) from DRAP for Sputnik V (COVID-19 vaccine), to be imported from Russia, ii) Jan’21 inflation contained at 5.7%YoY as compared to an increase of 8.0% in Dec’20 and 14.6% in Jan’20, iii) local cement sales displaying growth of 17%YoY to 27.65mn tonnes in 7MFY21 on the back of robust construction demand, and iv) Govt. announcing primary surplus of 0.7% of GDP during 1HFY21, similar to same period last year. Apart from E&P space, Power and OMCs amongst the mainboards gained 3.1%WoW and 2.5%WoW respectively, on developments relating to clearance of circular debt. Amongst secondary boards, Textile spinning gained 4.6%WoW on expectation of stronger results due to better margins on yarn in 2QFY21, followed by Leather (+4.1%WoW) and Paper & Board (+3.1%WoW). Flow wise, Foreigners were net seller during the week (US$2.73mn net outflow) together with Mutual funds (net sell of US$1.96mn) which was mainly absorbed by Individuals (net buy of US$9.5mn) and Companies (net buy of US$6.57mn). Top performers during the week were, i) GATM (+27.2%WoW), ii) MARI (+17.2%WoW), iii) PSMC (+11.8%WoW), iv) GSKCH (+9.5%WoW), and CHCC (+7.9%WoW) whereas laggards were, i) GHCL (down 19.9%WoW), ii) HASCOL (down 15.5%WoW), iii) GATI (down 12.3%WoW), and iv) INIL (down 11.6%WoW).
Outlook
Market is expected to maintain positive momentum in the near term especially on account of successful vaccination drive, developments toward settlement of IPPs dues, and earnings season (Key result announcements in the upcoming week include NPL, EPCL, MCB, CHCC, and ASTL). That said, some profit taking could be seen continuing in selected scrips in the coming week where key developments to watch out for in the near term is the upcoming FATF Review (expected later in the month). We continue to advocate Cements, Steel, and Consumers for building positions where our top picks include LUCK, MLCF, and ASTL.
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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