Pakistan Commodities: Global industrial slowdown takes its toll, (AKD Daily, Sep 11, 2019)
- Indicators of manufacturing activity exhibited significant weakness (JPM global PMI dropped to 49.3) pushing expectations of soft GDP growth (World Bank forecast of 2.6%, slowest since 2014), seeping into weaker commodity prices (TRJ index declined 4.6%MoM)
- Amongst broad categories for every major commodity class except safe-haven precious metals, prices have exhibited significant depression in CYTD basis, while energy commodities were broadly higher on CYTD basis (except Richards Bay coal and WTI), pulled lower by strained demand outlooks and supply gluts
- During the outgoing month, oil prices crept lower (Brent/WTI price fell 7.7/5.9%MoM), with coal prices reeled from lower demand from India and EU post declines of 6.2%MoM. Moreover, the downtrend in coal prices pulled Urea benchmarks lower YoY (but flat MoM). Trade tensions pulled soft commodity prices lower as well, while combinations of supply glut and weak outlook for imports kept food prices on the lower
- Amidst unprecedented trade tensions, weak commodity prices hold significant weight for import reliant Pakistan, where lower energy prices could hasten the revival of industrial output. On the flipside, rattled financial markets, with increasing risk-off sentiment and flight to safety may ward off potential investors, while responses from global Central Banks remain key in determining potential avenues for foreign portfolio flows.
AKD Research
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.