Report
Team AKD Research
EUR 13.28 For Business Accounts Only

AKD STOCK SMART,

Market remained lackluster during the week, influenced by lack of participation and no significant trigger, closing the week at 33,672pts, down 1.5%WoW. During the week, average daily turnover declined to 51mn shares, down 41% WoW while on Thursday, market witnessed second lowest volumes of 5 years (~40mn shares). Increase in fertilizer prices created some positive sentiment in the sector and brought it amongst the top performers while majority of other sectors remained dreary – in-line with the overall sentiment. Key news flows during the week included: 1) State Bank of Pakistan (SBP) receiving around USD1bn from International Monetary Fund (IMF) as the first tranche of bailout package, 2) IMF releasing a detailed plan for Pakistan highlighting key benchmarks which included quarterly adjustments of electricity tariff and increase in tax revenue by 1.5tr in FY21 and 1.31tn in FY22 among other things, 3) White House confirming that US President Donald Trump will meet Prime Minister Imran Khan at his office on July 22 and their talks will focus on strengthening bilateral cooperation, and 4) The government and fertilizer industry agreeing on increase in urea prices by PkR110/bag. Key performers from the AKD Universe included: 1) FFC (+2.4%WoW), 2) APL (+1.83%WoW), 3) CHCC (+1.7%WoW) and 4) EFERT (+0.6%WoW), whereas laggards during the week were: 1) DGKC (-9.2%WoW), 2) PSMC (-8.3%WoW), 3) HASCOL (-7.5%WoW) and 4) MLCF (-6.9%WoW). Volume leaders at the main board included: 1) MLCF (15.2mn shares), 2) KEL (13.3mn shares), 3) LOTCHEM (11.9mn shares), and 4) TRG (9.0mn shares).

Outlook

Regulatory actions will continue to keep the investors jittery, moving forward, however all focus will be set on Prime Minister's upcoming visit to US which, if successful, will provide some uplift to the market. Also, State Bank of Pakistan (SBP) is expected to announce monetary policy for next two months where AKD Research expects a hike of 150bps which will increase pressure on the already lackluster market.

AKD Research 

Underlying
Lucky Cement Ltd.

Lucky Cement is a cement manufacturing and distribution company which is based in Pakistan. Co. is engaged in the manufacture and sale of Ordinary Portland, Sulphate Resistant, and Slag Cement. Co.'s brand names included Lucky Cement, Lucky Star, Lucky Gold, Chairman, and Lucky Sulphate Resistant Cement. Co. maintains production facilities in Pezu (Production capacity: 13,000 tons per day) as well as in Karachi (Production capacity: 8,000 tons per day). In addition, Co. is engaged in developing export markets for bulk loose cement from Pakistan to the Gulf Countries, African Markets, and Far East Region including Nepal & Sri Lanka.

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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