Pakistan Equity Market: Weekly Review - Fresh Lows for 2018
- Driven by economic concerns, KSE-100 Index fell 4.3%WoW (1,772pts) to 39,226pts – the lowest level since December 21, 2017. Forex reserves depletion and economic risks highlighted by International Monetary Fund (IMF) & Fitch Ratings sent investors into jitters, while final blow was landed when Leader of the Opposition Shahbaz Sharif’s arrest in graft cases sent equities plunging during the last day of the week.
- On economic front, State Bank of Pakistan’s (SBP) forex reserves fell by USD628mn (6.9%WoW) to 4-year low of USD8.4bn (import cover: 1.4months) mainly due to debt servicing in the absence of meaningful financial inflows. Cumulatively, reserves have fallen by USD1.5bn (14.9%) during Sep-18.
- IMF Staff meetings concluded during the week where its Mission Chief Harald FInger acknowledged greater economic risks to the economy owing to high Twin Deficits together with low forex reserves. Though he welcomed policy measures aimed at fiscal and monetary tightening, he recommended further policy actions including 1) arrangement of significant external financing, 2) more flexibility in exchange rate, 3) monetary policy tightening, 4) fiscal adjustments, and) further increase in gas and power tariffs. Pakistan has yet to take a decision over fresh IMF program where it is expected to finalize it by mid-October as it is trying to secure funding from Saudi Arabia and United Arab Emirates.
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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