Report
Team AKD Research
EUR 13.86 For Business Accounts Only

AKD STOCK SMART, Jul 24, 2020

StockSmart                       

Weekly Review                                

The outgoing week marks as the 5th consecutive week, where KSE-100 closed in green. The market maintained its bullish momentum in the first three trading sessions, however witnessed consolidation in the latter part of the week, closing at 37,608pts, up 0.74% WoW. Market rumors on fines on cement companies as well as profit taking dragged the cement sector under pressure in last two trading sessions. Major news during the week included: (i) Current account deficit in Jun’20 clocking in at US$96mn, down 90% YoY, taking the full year CAD to US$2.9bn, down 78%YoY, (ii) LSM declining 25% YoY in May’20, (iii) $750m agreements signed with WB, AIIB under RISE programme, (iv) GoP considering to withdraw generalized subsidies, and increasing electricity tariff to pass-on the impact and, (v) formulation of Oil Refining and Marketing Policy 2020. The incentives in draft package would be applicable to all new 'state of the art' deep conversion (not second hand/relocated) oil refinery projects of minimum 100,000 bpd refining capacity to be set up anywhere in the country. Accordingly, the ban imposed by OGRA on retail development by Oil Marketing Companies (OMCs) in relation to lack of storage capacity in the regional context shall be lifted. The KSE-100 average traded volumes during the week declined 4.5%WoW to 407.2mn shares where stocks which generated large volumes included: 1) HASCOL (111.31mn shares), 2) UNITY (105.16mn shares), 3) TRG (94.46mn shares), 4) KEL (79.85mn shares) and MLCF (75.27mn shares). Major gainers from KSE-100 were: 1) SHEL (+21.4%WoW), 2) SERT (+21.2%WoW), 3) ANL (+11.5%WoW) and 4) KAPCO (+11.0%WoW), whereas laggards dragging the index lower were: 1) ARPL (-6.2%WoW), 2) PAEL (-6.4%WoW), 3) DGKC (-6.4%WoW), and 4) PMPK (-6.9%WoW).

 

Outlook

 

Major board meetings in the upcoming week include: FFC and EFERT. The KSE-100 may continue to witness consolidation on the onset of Eid holidays and roll over week, given a 10% rally over the past 1M.

AKD Research 

Underlying
Kot Addu Power

Kot Addu Power Co Ltd. Kot Addu Power Company Limited is a Pakistan-based power generation company. The Company's principal activities are to own, operate and maintain a multi-fuel fired power station with approximately 15 generating units with a nameplate capacity of 1,600 megawatts (MW) in Kot Addu, District Muzaffargarh, Punjab, Pakistan. The Company also sells the electricity produced therefrom to a single customer, the Pakistan water and power development authority. The power plant is a multi-fuel gas-turbine power plant using three fuels to generate electricity: gas, light sulfur furnace oil and high speed diesel. The plant's combined cycle technology enables it to use the waste heat from the gas turbine exhaust to produce steam in the heat recovery steam generator, which in turn is used to run the steam turbines.

Provider
AKD Securities Limited
AKD Securities Limited

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.

Analysts
Team AKD Research

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