Stock Smart Weekly ( Feb 12, 2021)
StockSmart
Weekly Review
KSE-100 constantly remained under pressure during the outgoing week, declining by 2.3%WoW to close at 45,808pts as investors indulged in profit taking after index remained on the upward trajectory for last 6 weeks. After a significant result beat by CHCC, entire cement sector remained in the limelight and sector turned out to be the top performer for the week with an increase of 5.2%WoW. However the sector failed to support the index as profit taking was witnessed across all other major sectors where Oil & Gas Exploration witnessed a decline of 4.1%WoW while Commercial Banks declined by 3.9%. Key news flows for the week consisted of i) Govt approving Russia's Sputnik V vaccine for emergency use and is also in process of giving approval to private firms to import Covid shots which will be exempted from price caps, ii) The Federal Cabinet giving final approval to the recommendations of the (CCoE) for payment of PkR403bn to IPPs, iii) TERF recording the highest increase of PkR51bn in one week, iv) NEPRA notifying PkR1.54/kWh increase in electricity rates for ex-Wapda Discos, v) OGRA allowing PkR13.42/mmbtu increase in tariff to SNGP, vi) Automobile sales increasing by 59/31% YoY/MoM for Jan'21 taking the total increase for 7MFY21 to 28%YoY. Flow wise, Foreigners remained net sellers during the week (US$-3.16mn) together with Banks (US$-12.38mn) which was mainly absorbed by Individuals (net buy of US$12.65mn) and Companies (net buy of US$8.4mn). Top performers during the week were, i) KOHC (+11.9%WoW), ii) PIOC (+10.6%WoW), iii) DGKC (+10.5%WoW), iv) GATI (+6.9%WoW), and LUCK (+6.6%WoW) whereas laggards were, i) FCEPL (down 15.4%WoW), ii) SNGP (down 12.1%WoW), iii) GATM (down 9.6%WoW), and iv) FABL (down 8.8%WoW).
Outlook
We expect the market to bounce back next week on the back of Govt's approval to private firms to import Covid-19 vaccine which will speed up the vaccination drive in the country while finalization of payment mechanism to IPPs will keep the entire energy chain in limelight, in our view. Moreover, market will also set its sight on upcoming FATF review where Pakistan will once again make a case for removal of its name from grey list. Major earnings' announcement in the upcoming week include EFERT, KOHC, HBL, MEBL, ENGRO, MARI, DGKC and PSO.
AKD Research
Kohat Cement Company Limited. Kohat Cement Company Limited is a Pakistan-based company, which is engaged in the production and sale of cement. The Company's products include Grey Cement and White Cement. The Company offers Ordinary Portland Grey Cement under the brand name KOHAT CEMENT. The Company produces and sells White Portland Cement under the brand name KOHAT SUPER WHITE. The Company also offers white canvas for various architectural applications. The Company's white canvas is used for concreting and ornamental applications, terrazzo floorings, fixing of tiles and marbles, and others. The Company's White Portland Cement is available in all local markets in Pakistan and Afghanistan. The Company has an annual production capacity of 2.8 million tons of Grey Cement and 150,000 tons of White Cement. The Company produces both Grey and White Cements at its plants located in Rawalpindi Road, Kohat.
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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