Pakistan Strategy_Leaving a turbulent year behind us, (AKD Daily, Jul 01, 2022)
Leaving a turbulent year behind us
FY22 concluded with the benchmark index returning -12.3%, while on the back of hefty
currency depreciation of 30%YoY during FY22, the dollar adjusted return throughout FY22
stood at -42.3% making the KSE-100 index one of the worst performing index in the region.
Amid tough economic outlook, the market participation remained dull throughout FY22
where the daily traded volume during the year averaged around 292.7mn shares as opposed
to 527.4mn shares it averaged during FY21. As for the outgoing month, the average
trading volume was slightly above the yearly average, clocking around 298mn shares
during Jun’22.
Flow wise, foreigners accelerated to cut positions in line with their global strategy with
an outflow of US$297.5mn, on top of the US$387.3mn outflow seen during FY21, taking
the total outflow over the last two years past US$684mn. On the other end of the spectrum,
Individuals and Banks absorbed the bulk of foreign selling with a net inflow of
US$157mn and US$115.2mn respectively.
Market volatility will continue to remain elevated with the near term economic outlook
continuing to remain hazy as the official announcement of revival of IMF program is still
awaited. In the meantime, the reserve hemorrhage will continue as the current account
position will continue to remain challenging. We therefore advise investors to maintain a
cautious approach in the market and take any bull run as a good exit point.
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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