Pakistan Equity Market: Weekly Review - Economic Concerns Erode Another 2.1%
- Pakistan Equities (KSE100) declined by 2.1%WoW (887ppts) closing at 40,855pts. Trading plunged activity remained lower as average daily traded value/volume stood at USD40mn/139mn, down 36%WoW/22%WoW.
- The outgoing week kicked-off with the second Economic Coordination Committee (ECC) meeting of the newly elected government with circular debt, urea shortage, gas price increase and sale of K-Electric (KEL) on the main agenda. While the government evaluated report submitted by Auditor General of Pakistan (AGP) on circular debt; it also took some concrete decisions on urea shortage and gas price subsidies given to domestic and industrial consumers.
- ECC decided to provide subsidized gas to three idle fertilizer plants i.e. Fatima Fertilizer (FATIMA), Pak American and Agritech Limited (AGL) for four months till Dec-18 to meet current urea shortfall. The Committee also decided to adjust outstanding subsidy payables to fertilizer companies against their alleged windfall gains of PKR10bn. As per the meeting, Ministry of Industries will determine the final amount of windfall gains reaped by the fertilizer industry against using subsidized gas and exporting urea at higher prices. We believe this decision will be challenged by fertilizer companies, particularly Engro Fertilizer (EFERT) and Fauji Fertilizer (FFC) as the subsidy and export quota were both awarded by the government itself. Nevertheless, selling pressure was witnessed in the sector as it declined 2% during the week with EFERT down 2.6%WoW (part of the stock’s decline being driven by profit taking post exorbitant rally in previous months).
Elixir Securities Pakistan is a Corporate Member of the Pakistan Stock Exchange & Pakistan Mercantile Exchange and is one of the leading securities brokerage & investment banking firms in Pakistan, established since 1994. Our principal business activities include all aspects of Pakistan’s Capital Markets covering Securities Brokerage (Equities, Fixed Income and Commodities), Corporate Finance & Capital Markets Advisory (M&A, ECM, DCM) and Investment Research (Economics & Securities). We are one of the most active & aggressive Broker-Dealers in Pakistan executing trades for most of the Top 20 Global Brokers with unmatched corporate access credentials and have successfully advised and closed on some landmark ECM transactions in the history of Pakistan including the largest deal in frontier Asia (USD 1.02 billion). Our Clients include foreign and domestic financial institutions (Banks, Asset Managers, Insurance Companies, Pension Funds) corporates, HNWI’s and retail investors. This is supported by a very strong and independent research capability, which is quoted regularly in both local and international media.
Elixir Securities Pakistan is the proud recipient of many awards & recognitions including AsiaMoney’s Brokers Poll 2017, FinanceAsia’s Pakistan Best Investment Bank and Best Broker 2017, The Asset’s Best Brokerage House in Pakistan 2016, Asiamoney’s “Best Domestic Equity House 2015 in Pakistan”, The Asset Triple A Country Awards 2015 - Pakistan “Deal of the Year” and “Deal of the Year-Highly Commended”, CFA Society of Pakistan Awards for Year 2015 “Best Research Analyst (1st Rank), CFA Society of Pakistan Awards for Year 2014 “Best Research Analyst (1st Rank)”, “Best Trader” 2nd Runner-up (3rd Rank), The Asset Triple A Country Awards 2014’s “Best Deal in Pakistan” and Capital Finance International’s nomination for “Best Equity Research in Pakistan 2010”.
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