Pakistan Commodities: Reeling from global economic fragility
Global industrial activity indicators, particularly PMI reads from China, USA and the EU, and consumer confidence slippages indicate a fragile end to CY18, laying the groundwork for CY19 to be a volatile year for global commodity markets, reflected in the TRJ Commodity index sliding 6.6%MoM for Dec'18.
On a broad note, fuel and energy-linked commodities witnessed weakness (Arab Light/ International Urea Prices down ~11/12%MoM) during Dec'18, as most other Hard (CRC/HRC Steel price -5.6/3.5%MoM) and Soft (Cotton/FAO dairy/FAO sugar indices moved -6/-3/-2%MoM) commodity classes were unchanged or exhibited muted moves
Lower global oil prices endows room for enhanced global commodity consumption, while subduing expectation surrounding aggressive monetary tightening as inflationary pressures subside, all the showcasing implications on global commodity prices from possible US$ weakness
Political uncertainty coupled with a shift to populist policies (EU, US) and erosion in global rule-making/enforcement bodies, remain major stressors for international commodity markets. The limited and unstable nature of commodity prices offer the GoP a window to enact impactful policy actions (circular debt clearance, oil pricing, gas reforms, additional RLNG arrangements) addressing structural deficiencies, a long time in the making.
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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