Report
Team AKD Research
EUR 13.86 For Business Accounts Only

AKD STOCK SMART, Aug 23, 2019

After recording heavy losses in the previous week due to heightened tensions on geopolitical front, market posted a strong rebound during the outgoing week as tensions slightly eased. Moreover, the rebound can also be termed a dead cat bounce after market observed a decline of 46% from its peak of 53000. KSE-100 closed the week at 31,350pts, up 9.0%WoW. With the strong rally, activity in the market also increased as average daily volume for the week stood at 174.42mn shares, up 2.3xWoW. Foreigners remained net sellers during the week with FIPI standing at negative USD 4.96mn. Key news flow during the week included: 1) The federal government appointing Aamir Khan as the new chairman of the Securities and Exchange Commission of Pakistan (SECP) with immediate effect, 2) US President Donald Trump initiating telephonic diplomacy between Pakistan and India to lower the tension in the region as he spoke with Prime Minister Imran Khan and India's Narendra Modi, 3) Prime Minister Imran Khan approving an extension in the tenure of Chief of Army Staff General Qamar Javed Bajwa for three years, 4) current account deficit (CAD) shrinking by a massive 73 per cent in the first month of this fiscal year to USD579 million in July, as compared to USD2.13 billion in same period of 2018-19, and 5) Government’s Pakistan Investment Bonds (PIBs) auction witnessing record participation with total bids crossing PkR1 trillion-mark. Volume leaders during the week were: 1) TRG (53.9mn shares), 2) MLCF (53.2mn shares), 3) BOP (46.6mn shares), 4) UNITY (45.6mn shares), 5) WTL (42.9mn shares). Stocks leading the performance board during the week included: 1) PIOC (23.1%WoW) 2) ASTL (22.8%WoW), 3) GWLC (19.8%WoW), 4) FCCL (18.64%WoW), and 5) NML (18.5%WoW).

 

Outlook

We expect market to focus on the inflation reading in the next week as we approach conclusion of the month while some major results of NBP, FCCL, INDU and FATIMA are also expected next week. However, geopolitical situation still remains a risk and any escalation on that front will weigh significantly on the market. Also, market can be expected to continue the rally witnessed in first four days albeit at a relatively muted pace after taking a breather on Friday.

AKD Research 

Underlying
The Bank of Punjab

Bank of Punjab is a commercial banking group based in Pakistan. Co. is engaged in the provision of commercial banking activities such as short term financing for working capital; financing under cash finance, demand financing, running financing and lease financing; equity underwriting; trust receipts; deposit taking; the provision of loans; foreign exchange transactions; investments and placements. In addition, Co. also acts as a clearing house for the transfer of bank funds throughout Pakistan.

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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