AKD STOCK SMART, Oct 20, 2017
Weekly Review
Broadly triggered by the cement sector, the market recovered from last week’s shaky performance treading into the Green Zone, with KSE-100 index gaining 2,241pts or +5.62%WoW to close the current week at 42,088pts. Average daily traded volumes also improved significantly by 26.64%WoW to 185mn shares with 1) EPCL (69.44mn shares), 2) KEL (58.48mn shares), 3) ASL (55.14mn shares), 4) TRG (48.35mn shares) and 5) DSL (48.34mn shares) leading the board. Key news flows impacting the market during the week included: 1) GoP hinting towards relief measures to address investor concerns over declining trend in the market, 2) GoP imposing regulatory duty on import of 36 new products and raising its rates on the existing 240 items in a bid to contain rising trade deficit of the country, 3) Finance Minister Ishaq Dar dispelling the impression that the country is facing an economic emergency and will need to return to the International Monetary Fund (IMF) soon, 4) LHC suspending a GoP’s notification which seeks NEPRA under the administrative control of cabinet division, 5) net foreign direct investment (FDI) rising by 56%YoY to US$662mn in 1QFY18, and 6) foreign exchange reserves expanding by US$381mn to US$20.05bn (+1.9%WoW) likely on account of borrowing worth US$450mn from the consortium of foreign and local banks. Performance leaders during the week were: 1) CHCC (+16.5%WoW), 2) GWLC (+13.9%WoW), 3) DGKC (+13.1%WoW), 4) LUCK (+13.1%WoW) and 5) PSMC (+12.5%WoW); while laggards included: 1) KAPCO (-2.2%WoW), 2) NBP (-1.7%WoW) and 3) KEL (-1.6%WoW). Foreign interest weakened during the week with net outflows of US$7.36mn as compared to net inflows of US$38.9mn in the preceding week.
Outlook
Strong positive trend was witnessed during the current week indicating optimism amongst the market participants. We expect this trend to continue going forward, where the market is also expected to take direction from the ongoing results season where better earnings expectations from Banking, Auto and Cement sector is likely to provide impetus to market’s performance. Major companies scheduled to announce results next week include ENGRO, PSMC, INDU, MLCF, FATIMA, EFERT, PIOC, MTL, KTML, ABL, MCB, SEARL, & ICI.
Indus Motor is engaged in the assembly, progressive manufacture, import and marketing of Toyota motor vehicles. Co. is also the sole distributor of Toyota and Daihatsu vehicles in Pakistan.
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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