Pakistan Market: Mar’18 Review
Developments on the macro front alongwith relative calm on the political front (Senate elections held on Mar 3’18) drove market performance during the month with the benchmark index gaining 5.4%MoM in Mar’18. In this regard, currency depreciation and consequent firming up of interest rate hike expectations were the most prominent highlights, rejuvenating interest in select sectors (Textiles, Electricity, Oil&Gas and Banks). While foreigners were net sellers during Mar’18, we saw a reversal of trend in foreign participation in the last ten days with foreigners buying equities worth US$6.4mn post depreciation. Volumes clocked in at 192mn shares, remaining largely concentrated in mid and small tier stocks like LOTCHEM, TRG and KEL. Performance at the mainboard remained encouraging with majority sectors posting positive returns. As such, Pharmaceuticals (+10.9%MoM on easing of deadlock to determine drug prices), Cements (+10.1%MoM on cumulative PkR45/bag increase in cement prices), Food Producers (+8.2%MoM on potential buyback rumors) and Electricity (+6.7%MoM on dollar hedged revenues) topped the list. Going forward, the market can continue its bullish momentum ahead of the budget FY19 with market participants anticipating positive developments with relation to the capital markets (rationalization of taxes). That said, MPS announcement of a status quo on Mar 30’18 was quiet contrary to market expectations and can spark a sell-off in the banking space, limiting gains. We advocate building position in LUCK, DGKC, PPL, PSO and NML.
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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