Pakistan Equity Market: Weekly Review - Profit Taking Kicks in
- Benchmark KSE100 lost 0.7% during the week, to close at 42,505. The week started on a buoyant note after Pak Rupee (PKR) witnessed surprising gains in the Open Market over the weekend. However investors resorted to profit taking in equities later on, as euphoria on PTI win in the Elections subsided.
- Rupee gained ~PKR10 or 8% in Open Market against the US Dollar over the last weekend. Interbank market followed suit over the week as it gained 3% to close at PKR124.05/USD by Friday.
- Market activity picked up during the week as an average of 284mn shares (+21%WoW) exchanged hands while traded value surged 37%WoW to average at USD96mn.
- In his briefings to the media, Asad Umar (widely tipped to be the next Finance Minister) did not rule out the possibility of Pakistan’s re-entry into another IMF Program. More importantly, he highlighted that once in power he will look to implement the following two reforms on a war footing basis: 1) create a sovereign wealth fund and move government entities into the fund to limit the involvement of bureaucracy and politically motivated decision making and 2) expedite release of refunds (export incentives, sales tax etc) to the industry to revive the ailing manufacturing sector.
- US Secretary of State Mike Pompeo’s remarks about Pakistan’s potential IMF bailout were however concerning. He warned that the bailout for Pakistan’s new government should not provide funds to pay off Chinese lenders.
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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