Report
EUR 9.32 For Business Accounts Only

Pakistan Economy_MPC - Positive message delivered! (AKD Daily, Dec 15, 2021)

AKD Daily

Pakistan Economy: MPC - Positive message delivered!

 

  • The Monetary Policy Committee (MPC) of the SBP, yesterday delivered another 100bps hike, taking policy rate to 9.75% but more importantly, communicating to “pause” monetary settings in the near term, believing the recent monetary policy actions are sufficient to meet SBP’s broader goals of sustainable growth and mildly positive real interest rates.
  • SBP also acknowledged monthly external deficit being stronger in the near term but potential downturn in global commodity prices (given normalizing supply chains and monetary tightening by other Central Banks), and overtures of domestic policy decisions slowing demand could transpire into monthly deficit turning to manageable levels.
  • Being proactive, and rightly so, has provided the Central Bank space to corroborate transmission of current monetary stance which comes at a lag and also to monitor fluid global macro settings imparting on domestic economy, and if needed, take corrective actions.
  • The market is expected to react favorably to the tone of MPS communication as the central bank downplayed the need of further hikes in interest rates in the coming months. Cements, Steels, and Textiles will outperform in this backdrop. Banks may also surprise if interest rates stabilize around this level (as higher interest rates squeezes CARs and clips payout capacities of banks).

AKD Research         

Underlying
National Bank of Pakistan

National Bank of Pakistan (the Bank) is a Pakistan-based commercial bank. The Bank provides commercial banking services, including commercial loans, investment advisory, asset management, global remittances, agency services, forex, leasing, modarba, underwriting, brokerage, and other banking and financial services. The Bank offers retail products, which include saving deposits, current deposits, housing finance, personal loans and agricultural loans; transaction banking services, which include cash management, trade finance and services, and remittance management; Corporate Finance services, which include deposits, structured corporate finance, capital advisory, investment advisory and trade finance; Treasury services, which include forex and financial derivatives, and government to person (G2P) services, which include pension payments, tax and fee collection, and other payments. The Bank serves its customers in over 20 countries.

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
Hamza Kamal

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