Pakistan Strategy: Market at a crossroad
- Inconclusive IMF talks have extended market uncertainty, however, a lack of definitive bearish movement indicates money managers factoring in eventual money flow from different avenues (Saudi, Chinese and IMF).
- Timing of fund flows, however, is crucial and holds the key to market direction where negative narrative on fund flow is being countered by positive narrative on eventuality of the same as well as economic benefit of current low oil price (US$5/bbl correction in oil reduces trade bill by US$1.1bn ceteris paribus).
- Historical average returns post an IMF program have been slight positive in the 60 and 90 days prior to entry. Current economic situation somewhat resonates with 2001 with IMF program a constant and aid flow from US replaced by China and Saudia, though the background of aid is different.
- Highlight defensive plays given uncertainty where picks include Banks (MCB, ABL), select Power (HUBC), Fertilizers (EFERT) and Autos (INDU).
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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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