Pakistan Commodities_Prices track the rebound, (AKD Daily, Sep 16, 2020)
AKD Daily
Pakistan Commodities: Prices track the rebound
- Improving macro indicators, recovering trade and industrial activity on the global scale have characterized the outgoing month, where commodity benchmarks reflect the same return path to recovery indicated by the TRJ index climbing 6.6%MoM
- While demand remains below pre-COVID levels and stifling of growth resulting from specific restrictions on movement and sub-par public health outcomes (accelerating COVID cases in India, Brazil and parts of USA) constrain consumer sentiments, all major commodity classes in our analysis have treaded higher on MoM basis (with the exception of -0.4%MoM move in Gold)
- In terms of energy commodities, Crude benchmarks (Brent/Arab Light up 3.7/10.0%MoM) and Coal (average prices up 2.4%MoM) as lower price levels made shale production unfeasible reducing active rigs further and effective supply curbs tightened demand-supply dynamics
- Urea (up 20%MoM), Cotton (up 0.5%MoM) and Steel (rebar/billets price rose 1.3%/2.1%MoM) during Aug’20 benefitted from lower supply while individual restrictions on import of commodities amidst an environment of rising protectionism has also distorted pricing dynamics over the medium term
- With major global economies suffering from historic contraction in growth and job losses, Pakistan remains relatively shielded from the negative repercussions of COVID-19 outbreak. Despite this cushion, inflation remains volatile, with food prices the usual culprit. Additionally remittances and constrained import bill lend some support on the external front.
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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