Pakistan Commodities: Slowing growth is the new normal, (AKD Daily, Nov 14, 2019)
- Global growth seems to have plateaued, as indicated by contractions in global manufacturing PMI and softening consumer confidence, where sentiments now driving global commodities seem to be focused on geopolitical developments, global central banks and FX swings (Dollar index slipped 1.9%MoM) have consolidated commodity price benchmarks (TRJ index +3.6%MoM)
- Almost all major commodity prices we track were higher MoM, with precious metals continuing their north-bound moves and other hard commodities edging higher, while energy prices followed a similar trend higher (Brent/Arab Light 3.7/1.8%MoM) where Coal prices recovered from the CYTD downward slide (up 8.4%MoM but down 29.5%CYTD)
- FAO food price index and the Cotlook benchmark was higher for the outgoing month, where dissipating trade tensions and lower production prospects dented supply expectations, driving prices higher.
- In terms of corporate profitability, lower commodity prices offer some relief in an otherwise tough operational environment, where some strength in the PkR vs. US$ (-0.6%MoM) comes as a welcome relief. Positive outcome of US China trade talks (including tangible confidence building measures), and global central banks implementing harmonious easing program could spur industrial activity in-turn driving commodity prices higher.
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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