Pakistan Strategy_Nov’20 performance rewards those who wait , (AKD Daily, Dec 01, 2020)
AKD Daily
Pakistan Strategy: Nov’20 performance rewards those who wait
- Despite a clustering of close-fisted participation (KSE-100/All Vol. down 39/30%MoM) in medium to small cap stocks (KSE-100 share of ready volume hit 57% vs. 11MCY20 avg. of 66%), the benchmark KSE-100 index climbed 3.0%MoM, reversing two months of softness and inching CYTD performance back in the green (0.82%).
- Underlying sector performance shows sporadic returns for mainboard sectors (Banks/E&Ps/Cement/Fertz moved +4/+10/-3/-2%MoM), where sectors moving the market higher were Technology (+18%MoM), Edible Oils (+12%MoM) and Textile Weaving (+11%MoM), supported by a stable macro outlook and receding stresses of COVID-19 amidst positive reports of vaccine efficacy.
- FIPI outflows of US$48.5mn contributed to take CYTD/FYTD outflows to US$475.2/182.3mn, while individuals remained in the driving seat posting net buy of US$33.8mn (CYTD net buy of US$199.7mn) followed by Insurance (US$12.7mn, CYTD net buy of US$207mn) and Companies (US$10.9mn), while amongst domestic portfolio investors mutual funds remained net sellers during the month (US$10.9mn)
- With macro data points resilient and on-track to assuage international lenders/agencies to secure long term funding facilities (with room for concessions), we believe investors are likely to embark on end-of-period window dressing coupled with portfolio re-balancing keeping market momentum upbeat. In this backdrop we favor Banks (HBL, UBL, MEBL), IPPS and PSO (on reforms) and E&Ps (cheap valuations).
AKD Research
Pakistan State Oil is a petroleum group based in Pakistan. Co.'s principal activities are the procurement, storage and marketing of petroleum and related products. Co. also blends and markets various kinds of lubricating oils.
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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