Pakistan Strategy - CY24 elections Unforeseen results loosening the confidence, (AKD Daily, Feb 13, 2024)
Pakistan Strategy - CY24 elections Unforeseen results loosening the confidence
- PTI-backed independents won the most seats in Pakistan's 2024 elections, defying expectations and leading to a hung parliament. Coalition talks are ongoing, but the future government structure remains uncertain.
- According to the provisional results released by the Election Commission of Pakistan (ECP), out of total of 264 seats, PTI-backed candidates have secured 92 national seats, followed by PML-N with 81 seats (including 6 independent candidates joining the party), and PPP garnered 54 seats.
- The new government faces significant economic hurdles, including multi-year high inflation and interest rate levels (FY24E CPI/Current policy rate: 25.8%/22%, respectively), and foreign exchange reserves at US$8.04bn, compared to mounting external debt requirements, standing at US$24.5bn in FY24.
- The hung parliament shattered investors confidence, leading to >3k pts decline in benchmark index on first two trading days post-election.
- Despite attractive valuations, investor sentiment hinges on the new government's initial actions, especially towards the IMF and economic reforms. A cautious approach is advised until clarity.
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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