Stock Smart Weekly (Jan 10, 2020)
StockSmart
Weekly Review
Market went through a roller coaster ride during the outgoing week driven by geopolitical tensions. Nosedive at the start of the week on heightened geopolitical tensions was followed by volatility in subsequent two sessions as markets looked for clarity however, towards the end of the week subsiding tension formed the basis of strong recovery. KSE-100 closed the week at 43,207pts, up 2.1%WoW along with improved activity (avg. daily volumes for the week increased by 7.6%WoW and stood at 303.2mn shares). Foreign interest also remained high with a net buy of USD7.02mn against net sell of USD7.29mn for last week. Major news flows during the week included: 1) Pakistan reaffirming its resolve not to become a part of any conflict in the region and renewed its offer for mediating in the Middle East crisis, 2) ECC approving amendments in the Regulation and Generation of Transmission and Distribution of Electric Power Act 1997, 3) ECC directing the Ministry of Finance to explore all possibilities for improving the liquidity position of PSO, 4) Pakistan's exports of goods declining 3.96%YoY in Dec’19, and 5) The National Assembly passing a bill — for exchange of information and criminals with countries — to meet a requirement of the FATF. Top performers from the AKD Universe were: 1) BOP (+12.5%WoW), 2) BAFL (+6.6%WoW), 3) LUCK (+6.5%WoW), 4) HMB (+6.0%WoW), and 5) MEBL (+5.4%WoW) while the top laggards were 1) INDU (-11.8%WoW), 2) HASCOL (-7.2%WoW), 3) MLCF (-5.8%WoW), 4) ASTL (-5.3%WoW, and 5) KAPCO (-4.1%). Highest volume during the week was witnessed in: 1) BOP (165.4mn shares), 2) KEL (155.3mn shares), 3) UNITY (83.62mn shares) and 4) TRG (74.4mn shares).
Outlook
With the geopolitical noise reducing, local dynamics are expected to take the driving seat where improving reserves (at 21-month high of US$11.5bn) and increased political harmony signal smooth sailing however uncertainty regarding upcoming FATF review is expected to cause volatility. Moreover, result season is also upon us, where any surprise or disappointment in earnings (particularly of heavyweights like Banks, Oil & Gas) can play a key role in determining the direction of market.
AKD Research
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.
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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