Pakistan Strategy: Subpar Sept’20 ends 1QFY21 with a thud, (AKD Daily, Oct 01, 2020)
AKD Daily
Pakistan Strategy: Subpar Sept’20 ends 1QFY21 with a thud
- KSE-100/All index slipped 1.3/0.5%MoM despite continued spike in trading activity (avg. monthly volumes +21.2/+15.0%MoM to 354.7/748.3mn) pushed higher by earnings release, heightened trading activity from policy actions in the pipeline (power tariff, energy policy), improved macro reads (CA surplus sustaining), and a subdued COVID-19 backdrop urging resumption to normalized commercial activity.
- Cumulative CYTD KSE-100 index return now stands flat (-0.4%), where 1QFY21 returns (+17.9%QoQ) continued the upswings post March’20 dip (recovered 49% from 25th March low), where a comparison of KSE-100 vs. KSE-ALL index returns show that side stocks in the mid and small cap space drove the bulk of returns.
- Amongst local investors, individual participation continued with net buying of US$31.9mn (US$181.5mn CYTD), followed by Insurance of US$23.3mn, whereas Banks (US$11.6mn net sell) and Brokers (US$10.0mn) extended outflows, while cumulative FIPI for the month reverted back to net outflows (US$33.3mn) after a month of small inflows taking CYTD outflows to US$387.6mn.
- We remain upbeat over recent structural moves to augment market liquidity (NSS Curbs, ETFs) which we believe will dovetail with substantial macro reforms and upcoming report cards from international bodies (FATF plenary and (virtual) working group meetings on 21-23rd Oct’20), for driving any sustainable bull run.
AKD Research
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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