Stock Smart Weekly (Dec 24, 2021)
StockSmart
Weekly Review
Market remained flat throughout the week, gaining 0.5%WoW to close in at 44,118 points level. This took the cumulative performance throughout CY21 to 0.8% whereas the dollar adjusted return currently stands at –ve 9%. Volumes dried up significantly on WoW bases where ADT was recorded at 215mn shares as opposed to 265mn shares, down 18.7%WoW. The performance during the week was dictated by the news-flows related to possible resumption of the dormant IMF program, the pre-conditions related to the program and the law making the country needs to do in order to unlock the flows. To this end the GoP. Major news released during the week were i) CAD numbers for Nov’21 where the final number settled around US$1.9bn as opposed to expectations of US$2.5bn, ii) GoP approved textiles and auto policies, iii) GoP missing petroleum levy target by 41%, iv) US$1.5bn loan approved by ADB for the power sector reforms and v) GoP increasing the base tariff by 95paisas. Other key market related news during the week were i) Wilmar increasing its stake in unity to 15.1%, ii) cellular subscribers increased to 106.68m as per PTA’s latest report, iii) fertilizer shortage in Sindh and Punjab to hit wheat production in the country, iii) GVGL looking to enter auto assembling business, iv) Auto financing hits PkR350bn mark. Top performers of the market included i) BNWM (+20.4%WoW), ii) HCAR (+14.8%WoW), iii) TRG (+11.0%WoW), iv) PSX (+9.3%WoW), and v) ABOT (+7.2%WoW). Meanwhile laggards included: i) ARPL (-15.1%WoW), ii) SFL (-13.1%WoW), iii) GATI (-12.9%WoW), iv) COLG (-11.0%WoW), and v) JDWS (-7.4%WoW). In terms of the top performing sectors, Power generation (news of payment of outstanding dues) was the top performer, returning 4%WoW, followed by Pharmaceutical sector (news of revision in drug prices) which returned 3.7%WoW and Textile spinners (soaring yarn margins) which returned 3%WoW. Flow wise, Foreigners continued turned net buyers with an inflow of US$3.7mn, cushioning the sell-off by Mutual funds (US$3.6mn), and Individuals (US$2.6mn).
Outlook
The market performance is likely to remain range-bound given the year end phenomena where the volumes appear to ease-off slightly before new year. The market is also likely to closely watch the developments related to announcement of mini-budget. The market is also likely to closely track the secondary market yield movements where the central bank through its recent open market operations flushed banking industry with liquidity which helped bring down the yields on GoP papers by up-to 80bps.
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.
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