AKD STOCK SMART, Aug 13, 2020
StockSmart
Weekly Review
Continuing on its stellar bull run into eight consecutive weeks, the KSE-100 index shrugged off significant regulatory risks and continued to climb, closing the week at 40,291pts, up 0.65%WoW, on track to be in the green on CYTD basis. Avg. daily traded turnover remained stable (-9%WoW to 581mn shares) where retail favorites reigned supreme, with volumes led by: 1) HASCOL (270mn share), 2) UNITY (130mn shares), 3) TRG (128mn shares) and 4) WTL (110mn shares). News flows guiding sentiment during the week included: 1) The Supreme Court case decision on Gas Infrastructure Development Cess (GIDC) was an affirmation of the Govt’s stance, has reportedly directed complete recovery of GIDC payables from the industries until 2018 (PkR417bn as of Dec’18, as per GoP draft proposal submitted to senate), 2) Saudi Arabia is revisiting the committed amount of deferred oil facility of US$3.2bn annually keeping in mind the Pakistan's capacity of utilisation of the facility, Special Assistant to Prime Minister (SAPM) on Petroleum Nadeem Babar said, 3) Pakistan’s fiscal deficit came in at 8.1% of GDP in 2019-20, almost 1% lower than anticipated, mainly because of underutilization of Prime Minister’s Economic Relief and Support Package, 4) Moody’s Investors Service has confirmed the government of Pakistan’s B3 local and foreign currency issuer and senior unsecured debt ratings with a stable outlook, 5) PM Imran Khan said that the PTI government had spent its first two years under most trying times as it had to save the country from default, affirming that the Rs5 trillion Ravi City project would create millions of jobs as there were 40 industries connected to the construction sector, and 6) Independent Power Producers (IPPs) and GoP’s team are said to have completed four rounds of talks but “crucial things” are yet to be tabled and agreed between the parties. Top performers for the week included: 1) HASCOL (+18.4%WoW), 2) KAPCO (16.0%WoW), 3) SNGP (+14.4%WoW), and 4) ATRL (+13.9%WoW), while laggards were: 1) HCAR (-9.8%WoW), 2) PSMC (-7.9%WoW), 3) AGP (-6.9%WoW) and 4) IGIHL (-6.7%WoW). Foreign portfolio investments recorded inflow of US$8.7mn, while individuals continued to buy as well (US$11.4mn), while Banks (US$10.7mn) and Insurance (US$5.4mn) were net sellers during the week.
Outlook
As regulatory risks mount and headline risks induce volatility in specific sectors (GIDC decision negative for fertilizers, chemicals) policy steps guiding sentiment may need to be backed up by actions (headway on housing and development projects key). Overall, macro improvements are likely as COVID-19 driven externalities fade out and consumer activity picks up.
AKD Research
TRG Pakistan Limited is a holding company. The principal activity of the Company is to acquire, invest and manage operations relating to business process outsourcing, online customer acquisition, marketing of medicare related products, and contact center optimization services through its subsidiary, The Resource Group International Limited. It operates through four segments: call center, software and artificial intelligence business, medicare health insurance and market research. Its call center segment involves the provision of customer service support through telephone. Its Software and artificial intelligence (AI) segment provides optimized call outcomes for contact centers by pairing agents with callers based on behaviors and other related data. Its Medicare health insurance segment is engaged in marketing medicare insurance policies to senior citizens and other eligible individuals in the United States. Its market research segment provides analytical and consultation services.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.