Pakistan Strategy_Oct’19 Review & Outlook,(AKD Daily, Nov 01, 2019)
- Oct’19 was a month of two halves, as PSX introduced minimum brokerage commission resulting in volumes declining by 41% to 144mn shares in 2H vis-à-vis 1H and KSE-100 remaining flattish during 2H vs. 6.2% gains in 1H.
- FATF’s decision to keep Pakistan on grey list till Feb’20 on 18th Oct’19 further dampened the market sentiments, and kept the investors on sideline. Meanwhile, developments on the local political landscape – the ‘Azadi March’ – added to the market volatility.
- Overall, KSE-100 returned 6.6%% during the month, closing at 34,204 pts, while the avg. volume for the month (192mn shares), being the highest monthly volume in 12M. Within market participants, Individuals and Others (c. buy of US$22.3mn) were the major players absorbing the selling of foreigners (US$12.9mn), banks (US$4.68mn), and mutual funds (US$4.62mn).
- Market performance is likely to be dictated by macro headlines going forward. In this regard, monetary policy announcement later this month is an important checkpoint. Additionally, clarity on privatization of E&Ps (OGDC and PPL are heady, nameplate capital market transactions) and clarity on issues revolving around certain industries such as circular debt and decision on GIDC, should drive performance in these sectors in the medium term.
AKD Research
Hub Power Company is a holding company. Through its subsidiaries, Co. is engaged as a power producer in Pakistan that focuses on developing, owning, operating and maintaining power stations. Co. supplies electricity to Water and Power Development Authority and National Transmission and Despatch Company under long term Power Purchase Agreements for its Hub and Narowal plants respectively.
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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