Pakistan Strategy: New Year couldn't come sooner
KSE-100 index has shed 5.4% during Dec'18TD, marking the worst Dec since 2008, with avg. volumes stumbling to 122.1mn, the lowest in the past 13M.
Key trigger for bulls to emerge from the sidelines seem to be tilted towards Pakistan's entry into another IMF program, though the rally could be short-lived (shown by historical trends) as investors adjust to new realities of deep structural reforms imposed by the Fund.
For the index at large, heavyweights, Banks (24.7% of index weight) and E&Ps (14.5% weight) could offer crucial support to the index, whereas downside risks are more apparent on cyclical sectors (cumulative weight of autos, cables, foods and OMCs at 12.2%) which maintain a feeble share of the benchmark.
Banks could gain on the back of interest rate hikes (before concerns on provisioning risks erode upsides) whereas the E&P sector could be led by a recovery in oil prices (from production cuts by OPEC and NOPEC countries commencing from Jan'19) and exchange rate devaluation.
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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