Pakistan Commodities: Risk of slowdown aggravates global markets
- Amidst the continued easing of global economic activity, looming threats of tariffs and most leading indicators of consumer/producer confidence softening, extending volatility to global commodity markets where the TRJ Commodity index moved +3.3%MoM but remaining lower by -9.6%YoY.
- The most direct impact of trade tensions yet was witnessed in slowing PMI numbers from China, India, Germany, while a downturn in consumer confidence readings from the US indicate significant spillovers from a potential trade tussle between the US and Chine, where on the flipside, ASEAN nations witnessed significant uptick in PMI (particularly Vietnam and Myanmar).
- Energy commodities continued to climb with Arab Light/Brent rising +4.1/+3.7%MoM while Richard’s Bay Coal prices increased slightly, where June’19 price movements failed to arrest long term downward momentum across energy benchmarks (Arab Light/Brent/Coal benchmarks fell -12.4/-17.0/-38.3%YoY).
- Cotton benchmarks softened, whereas steel prices witnessed a minor rebound on the back of varying industrial activity from China, while the FAO index was flat, subdues by soft dairy index moves.
- Mounting challenges to global trade activity remains a dampener on the horizon for export prospects from Pakistan, where the prevailing devaluation could spur trade activity, and escalating tariffs on Chinese exports are a possible catalyst for securing export orders to the US.
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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