Pakistan Strategy_Jul’22 Market Review & Outlook, (AKD Daily, Aug 01, 2022)
Jul’22 Market Review & Outlook
FY23 started off on a weak note with index shedding 3.3% of its value in Jul’22. This took
the cumulative index return during CY22 to 10.6%. Jul’22 was also a difficult year for PkR
as the local currency shed ~17% of its value against US$, the worst monthly performance
since 1972. As a result, the US$ adjusted return clocked in ~-20%MoM.
The average daily trading volume decreased to ~223mn shares during the month as opposed
to ~298mn during the last month, down 25%MoM. The participation was seen to
have remained concentrated in the side scrips with average volumes in KSE-100 index
averaging ~73.5mn throughout the month.
The major underperforming sectors during the month were Refineries (-14.4%MoM),
Auto Assemblers (-11.0%MoM) and Auto Parts Manufacturers (-9.8%MoM) while the
sectors that were able to outperform the benchmark index were Vanaspati (~9.0%MoM),
Leasing companies (~4.1%MoM) and Technology (~3.8%MoM).
Market is expected to remain jittery in the short term with GoP looking to increase taxes
on manufacturing concerns further on top of what had been approved in Federal Budget
2022-23. The market is unlikely to receive this news favorably as the corporate profitability
will erode further which will squeeze the valuations. We advise investors to stay cash
rich
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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