Limited implications of Gulf tensions
​Imposition of a complete and abrupt embargo by Saudi Arabia led bloc of Middle Eastern nations (Egypt, UAE, Bahrain and Yemen) on the State of Qatar. While the situation remains very fluid, with developments coming by the hour, Pakistan has been neutral so far with the foreign office stressing that Pakistan has no plans to cut diplomatic ties with Qatar. In terms of implications from an adverse event, import reliance on Qatar has been low for Pakistan, however this has seen a shift recently with RLNG agreements signed with the country (import share at 2.3% in 10MFY17 vs. 0.5% 5yr average). Moreover, Qatar ranks a distant 7th place with inbound remittances making up only ~2% of total remittances over the last 5yrs. With regards to RLNG, imports (up 1.7xYoY in 10MFY17) have been rising at a major clip bolstered by long term RLNG supply agreement inked with Qatar. While the agreement is based on a Take or Pay structure, we believe the contractual grounding for the agreement insulates Pakistan from any untoward developments on the RLNG front. Besides, the Qatari government and related entities have assured its largest customers that shipments will not face disruptions (the same is expected in our case). We believe, political developments and geopolitics closer to home are expected to outweigh GCC-related developments for local investors.
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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