Pakistan Economy: Base effect pushes inflation down, (AKD Daily, Aug 31, 2020)
AKD Daily
Pakistan Economy: Base effect pushes inflation down
- Headline inflation is expected to decline to 8.76%YoY vis-à-vis 9.30%YoY in the last month and 10.50%YoY in Aug’19. The soft reading is primarily on account of a favorable base effect.
- On an MoM basis, the CPI index is likely to move up 1.13%, largely due to hike in utility prices (+22.5%) following notification of FCA and gov’t administered fuel prices (+4.5% avg.). Food inflation that remained a key source of headline inflation lately is expected to take some breather in Aug’20, with food index remaining flat MoM.
- From monetary policy vantage, continued improvement in external account amidst weak macro backdrop would keep the central bank to maintain accommodative bias. We expect the central bank to remain on hold until a deterioration in external balance merits any action.
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.
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