Pakistan Equity Market: Weekly Review - PKR Depreciation Compounded the Pressure from MSCI Re-Balancing
- Pakistan Equities (KSE100) declined by 0.9%WoW (373 pts) to close at 40,496. Average daily traded value improved by 29%WoW to USD72mn, largely due to increased activity on account of MSCI led rebalancing today; average daily traded volume however declined by 3.1%WoW to 152mn shares.
- The US dollar opened at PKR142 on Friday and traded as high as ~PKR144 during the day before closing at PKR139 (up 4% from previous day). This takes PKR’s cumulative depreciation to 26% during 2018TD. In the Press Conference held in the latter half of the day, the Finance Minister attributed the latest round of Rupee depreciation to 1) increasing foreign loans, 2) depleting foreign exchange reserves, 3) low exports and 4) artificial cap on the value of dollar in the previous government regime. For now, we maintain our FY19 end (Jun-19) USD forecast at PKR142.
- State Bank of Pakistan (SBP) raised Policy Rate by 150bps to 10% which was in line with expectations reflected by money market yields but higher than equity market consensus of 100bps. SBP maintained its average inflation expectation of 6.5%-7.5% in spite of recent decline in oil prices due to downside risks.
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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