Pakistan Power: Coronavirus corrodes crude cut optimism, (AKD Daily, Jan 28, 2020)
Pakistan Power: Coronavirus corrodes crude cut optimism
- The novel corona virus (NCV) outbreak in China has taken global markets by storm, sparking concerns of a sustained slowdown in the world’s second largest economy, with wider spillovers for Asian growth and global demand for commodities
- Taking stock of the situation and drawing parallels with the 2003 SARS virus outbreak (while flagging variations), we present global oil trade data where weak transportation demand, juxtaposed against the drastic rise in China’s role in crude demand stoking fears of harsher compression in global demand
- At present, news reports and medical journals showcase a lower mortality rate (3% vs. 10% for SARS), while Chinese authorities have taken drastic steps to contain the outbreak possibly lowering its spread, potentially limiting its spread, while statements from OPEC member countries allude to potential deepening of production cuts
- Early Jan spikes from heightened geo-political tensions are seen cooling off reversing optimism from the 200,000bbls cut agreed upon in Nov’19 where the upcoming OPEC+ meeting in March remains a major flashpoint. At home, weak oil prices remain beneficial in managing external deficits, while the risk of inflationary spikes from elevated fuel cost subsides providing stability
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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