Pakistan Strategy_May’22 Market Review & Outlook, (AKD Daily, Jun 01, 2022)
May’22 Market Review & Outlook
May’22 proved to be a tough year for the local equity investors where the index returned
–4.8%MoM on closing basis. This was the worst monthly index performance since Sept’21
when the index returned –5.3%MoM on the closing basis. Also with PkR depreciating by
over 6%MoM, the USD adjusted return during the month stands around –11%MoM.
The average daily trading volume shrunk to 252.2mn shares during the month as opposed
to 289.5mn during the last month. The lackluster market participation is reflective of
rising economic uncertainty as the soaring trade deficit, huge external debt servicing and
rapid reserve depletion is making the investors jittery.
The major underperforming sectors during the month were Cements (-13.3%MoM), Engineering
and Pharmaceuticals (-7.6%MoM). While the sectors that were able to outperform
the benchmark index were Sugar (2.9%MoM) and Leasing companies (3.7%MoM)
Market is eagerly anticipating announcement of IMF agreement which will not only allow
country to unlock further inflows and help meet its maturing debt liabilities but will also
help instill confidence in the market. The GoP has already made a headway on reviving
the deal by partially rolling back subsidies on the consumption of fuel. However, more
needs to be done to get IMF on board
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.
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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