Stock Smart Weekly (Jun 04, 2021)
StockSmart
Weekly Review
After an exuberant week, KSE 100 started the week with same enthusiasm, however, the index failed to sustain that level when investors started to book their gains in later sessions. KSE-100 closed the week at 48,212pts, up 2.3%WoW whereas the average weekly volume in KSE 100 decreased by 9.4% WoW to 1.12bn. The overall investor sentiment remained positive on account of improving macroeconomic indicators where continued government's continued support towards construction sector resulted in engineering sector being among the leaders with a performance of +9.6% during the week. Meanwhile, refinery sector performed +6.1% during the week as news report suggest new policy for the sector is in its final stages. The week also included some key economic data releases where FBR surpassed its May collection target by 8%, inflation clocking in at 10.9%, Petroleum sales at all-time high of 1.7mn tons, up 14%YoY and exports posting a growth of 14%YoY. Other news flows during the week included i) Ministry of Finance likely to pay the first instalment of Rs90 billion to 35 Independent Power Producers (IPPs) including Hubco and Kapco, at the end of the week, ii) approval of US$130mn for vaccine procurement, iii) Pakistan and the Russian Federation signing the amended Inter Governmental Agreement for North South Gas Pipeline (NSGPP) of 1,122 kilometers from Port Qasim (Karachi) to Kasur (Punjab), and iv) GoP planning to abolish about two dozen withholding taxes. Stock wise top performers include, i) PTC (+16.6% WoW), ii) PSMC (+16.4% WoW), iii) HCAR (+14.9% WoW), iv) HASCOL (+14.3% WoW), and v) PSX (+13.4%) whereas the laggards were i) KEL (-4.0% WoW), ii) JLICL (-2.5% WoW), iii) MTL (-2.1% WoW), iv) BAHL (-1.8% WoW) and v) FATIMA (-1.7% WoW). Flow wise, individuals remained the major buyers with a net buy of USD11.05mn followed by mutual funds (net buy +USD4.61mn) while insurance stood on the other side with a net sell of USD11.95mn followed by brokers (net sell of USD6.17mn).
Outlook
For the upcoming week, all eyes will be set on FY22 Budget, expected to be announced on 11th Jun'21 (Friday), however budget related news item can keep the market volatile during the whole week. Moreover, Refinery, Automobile Assembler and Automobile Parts and Accessories sectors will have particular attention with refinery and auto policy expected to be announced with/around budget. Construction and allied sectors are also expected to continue garnering investor interest with development budget expected to be increased while government continues its support towards construction sector.
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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