Stock Smart Weekly (Apr 16, 2021)
StockSmart
Weekly Review
KSE-100 closed the week at 45,306pts, flattish WoW, however amid a 10%WoW decline in average daily turnover (368mn shares) on the onset of Ramzan in second trading session. Announcement of board meetings indicating upcoming board meetings reinvigorated the market sentiment to some extent. The week also included some key economic data releases where LSM growth of 4.85% in Feb’21 marked a slowdown in the industrial output which had hitherto been showing a double digit growth in the preceding months. Remittances however, touched US$2.7bn, up 20%MoM. Moreover, Eurobond inflows in the week ending on 9th April’21 pushed forex reserves to US$23bn, at a three year high. On the other hand, government officials discussion on stringent IMF targets, specifically increase in electricity tariff in FY21 did cast uncertainty after encouraging US$ flows over previous weeks. Other newsflow during the week included: (i) PPP formally quits PDM, (ii) Pakistan eyes another $1b debt relief from G-20, (iii) Personal income tax: FBR trying to reduce number of slabs to 5, while planning to increase tax incidence on middle and upper salary tax brackets, (iv) passenger car sales witness 26% MoM increase in Mar’21, and lastly, (v) government reduced petrol and HSD prices by PkR1.79 and PkR2.32 per litre for second half of the month. Flow-wise, companies overtook foreigners in selling spree, squaring-off positions worth US$8.8mn while it was absorbed by participants across the board primarily by individuals with net inflow of US$9.8mn. Stock wise, top performers include, i) ATRL (+7.8%WoW), ii) SHEL (+6.8%WoW), iii) SNGP (+5.6%WoW), iv) PSMC (+5.4%WoW), and v) PTC (+5.0%WoW) whereas laggards were, i) PMPK (down 4.8%WoW), ii) PSX (down 4.3%WoW), iii) HASCOL (down 4.3%WoW), iv) LOTCHEM (down 3.5%WoW), and v) SHFA (down 3.5%WoW).
Outlook
Market sentiment in the upcoming week is likely to be marked by results of banks (MCB, HBL, UBL & MEBL), E&Ps (MARI), Fertilizers (EFERT & ENGRO), Cyclicals (MLCF, ASTL, ASL, ISL, INIL & PSMC) and, chemicals (EPCL & LOTCHEM). COVID’19 cases are increasing to make new highs in Pakistan, which could lead to wider lockdowns and be a potential dampener.
AKD Research
Maple Leaf Cement Factory is engaged in the production and sale of white cement, grey cement and clinker. Co. is a subsidiary of Kohinoor Textile Mills 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.
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