Report
Team AKD Research
EUR 9.12 For Business Accounts Only

Stock Smart Weekly (Mar 31,2023)

Weekly Review

Market witnessed lackluster performance this week, with a weekly change of mere 59 points. 
Reason behind this dull performance was economic and political instability that remained 
throughout the week. IMF situation continued to hang in the balance, despite the government 
officials' doubtful assurances of resolution. Currently, IMF is seeking commitments from 
friendly countries to bridge the gap of external financing, and furthermore, the fund is demanding clarity on the announced fuel subsidies. Alongside these developments, reserves saw 
a decrease of US$354mn in SBP held reserves, standing at US$4.24bn as of 24th March. 
KSE100 index gain 59pts this week and closed at 40,000pts on Friday, which is a positive 
change of 0.15%WoW. Market participation also fell by 30.8%WoW and the average volume 
reported at 92.3mn, which was 133.4mn last week. Other major news flows during the week 
included; 1) July 1-March 11: Rs2.6trn borrowed for budgetary support, 2) Jul-Feb repatriation 
of profit, dividend plunge 80pc YoY; Import curbs hurt investors in equal measure, 3) IT exports down 3%YoY to $195 million in February, 4) FBR Faces Uphill Task to Meet Tax Collection 
Target for July-March, 5) UAE says its keen to invest in Pakistan economy. Sector-wise, Leather 
& Tanneries, Textile weaving, and Cable & Electrical goods were amongst the top performers, 
up 7.5%/4.2%/2.7%WoW respectively. On the other hand, Miscellaneous, Leasing companies 
and Property were amongst the worst performers with a decline of 11.7%/5.2%/2.5%WoW. 
Flow wise, major net selling was recorded by Insurance with a net sell of US$8.64mn. On the 
other hand, Banks absorbed most of the selling with a net buy of US$4.58mn, followed by 
Companies with net buy of US$4.46mn. Company-wise, top performers during the week were, 
i) CEPB (up 9.1%WoW), ii) SHFA (up 8.3%WoW), iii) PIBTL (up 7.9%WoW), iv) HCAR (up 6.7%
WoW), and v) PAEL (up 6.5%WoW), while top laggards were, i) PSEL (down 23.6%WoW), ii) 
PGLC (down 14.4%WoW), iii) YOUW (down 9.0%WoW), iv) SHEL (down 5.6%WoW), and v) 
KTML (down 5.0%WoW).

Outlook

The main focus of the market will be on the MPC meeting on April 4th where we are expecting 
a rise of 200bps. In addition, the market will also be focusing on any positive developments on 
the SLA from IMF, which could create a rally in the market. However, until there are clear economic and political developments, we anticipate the market to remain in a range-bound state. 
As such, we advise investors to take positions in the market with caution and to keep their ear 
to the ground for any significant changes on the horizon.

Provider
AKD Securities Limited
AKD Securities Limited

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.

Analysts
Team AKD Research

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