Stock Smart Weekly (Mar 26, 2021)
StockSmart
Weekly Review
The market had a strong start to the week with benchmark KSE-100 index gaining 506pts on Monday and maintained the momentum in the next two trading sessions by gaining 137/182pts before closing on Friday at 45,522pts with an increase of 1.38%WoW. SBP retaining policy rate at 7% and revising its growth forecast upward for FY21 to 3%, contraction in current account deficit by 75%MoM, IMF third loan tranche approval of US$500mn, important development in India and Pakistan bilateral relations providing political stability in the country and fears over countrywide lockdown expertly downplayed by NCOC by keeping only hotshot places in the lockdown were key triggers that drove the market throughout the week but month-end phenomena kept the market gains in check. Other major news flow during the week included i) The federal cabinet decided to cap prices of Russian, Chinese vaccines and will receive first purchase of over 1m doses of Chinese vaccines ii) Washington to further strengthen partnership with Pakistan iii) New policy to extend incentives for setting up refineries, iv) Banks, DFIs allowed to invest more in REITs, v) Pakistan hires banks for three-tranche dollar bond sale, vi) Urea sales dip 12% in Feb’21, vii) IT exports rise 41% to US$1.3bn in 8MFY21 and viii) SBP relaxes conditions to facilitate low-cost housing by reducing interest rate to 3% and 5%. Flow wise, Foreigners remained net sellers during the week (net sell of US$0.12mn) together with Banks/DFI (net sell of US$2.96mn) and Companies (net sell of US$1.98mn) which was mainly absorbed by Broker Proprietary Trading (net buy of US$3.69mn) and Mutual Funds (net buy of US$1.65mn). Top volume gainers for the week were, i) BYCO (219.8mn), ii) TRG (160.3mn), and iii) PTC (139.5mn). Top performers for the week were, i) ATRL (+25.1%WoW), ii) PTC (+20.5% WoW), iii) TRG (+18.2%WoW), iv) ANL (+15.4%WoW), and v) STJT (+14.5%WoW) whereas laggards were, i) PMPK (-9.1%WoW), ii) EFUG (-7.4%WoW), iii) SYS (-6.7%WoW), iv) ILP (-5.0%WoW), and v) JDWS (-4.7%WoW).
Outlook
With further incentives provided in the revised scheme for low cost housing initiated by the Govt, the scheme will bolster investors’ confidence in the cement and steel sector. Much awaited payment of first installment to the IPPs as per agreements inked in Feb’21 will provide a key trigger for power sector. Preliminary price trends in Mar’21 suggest pickup in inflationary pressure with inflation for the month likely to clock in at 9.78%YoY vs. 8.70%YoY in Feb’21 and with the result season upon us, the result expectations are expected to form the basis of stocks performance in the coming weeks.
AKD Research
JDW Sugar Mills Limited is a Pakistan-based holding company. The Company is engaged in the production and sale of crystalline sugar, electricity and managing corporate farms. It operates through four segments: Sugar, Co-Generation segment, Corporate farms segment and Others. The Sugar segment is engaged in the production and sale of crystalline sugar and other related joint and by-products. The Co-Generation segment is engaged in the generation and sale of electricity. The Corporate farms segment is engaged in managing corporate farms for cultivation of sugar cane and cotton. The Others segment is engaged in handling a project under construction for manufacture and sale of wood pulp. The Company manages sugarcane corporate farms in an area of approximately 24,000 acres in the Provinces of Punjab and Sindh. The Company, through its subsidiary, is engaged in the manufacturing of wood pulp from eucalyptus for consumption in local and foreign paper industry.
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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