AKD Securities Limited – Stock Smart

Karachi, June 14, 2018 (PPI-OT): Weekly Review

Lacking any major triggers in the last week of Ramadan, market remained lackluster most part of the current week (slipping 267pts) to close the benchmark KSE-100 index at 43,681pts (-0.61%WoW). Rising macroeconomic vulnerabilities on account of sharp PkR depreciation against US$ (falling ~4%), soaring trade deficits to all-time high of US$33.89bn in 11MFY18 (+13.4%YoY) and increase in local petroleum product prices (rose 4-7%) were the major culprit behind the overall dull performance of the market during the week. Average daily traded volumes at bourse also declined by 28.27%WoW to 131.84mn shares with 1) BOP (61.89mn shares), 2) PAEL (25.49mn shares), 3) LOTCHEM (24.78mn shares), 4) FCCL (20.97mn shares) and 5) KEL (20.85mn shares) leading the board.

Major news highlights during the week include: 1) leadership in National Security Committee meeting, reaffirming Pakistan’s commitment to meet the international agency’s requirements in upcoming FATF meeting later this month, 2) SC sets 30-day deadline for verdict in Nawaz cases, after extending the deadline given to the accountability court of Islamabad, 3) CJP observing that the court has no objection to the Amnesty Scheme and gave one month time to the committee to come up with suggestions against their reservations, 4) SECMC claiming to unearth the first layer of coal from its open-pit coal mine in Thar Coal Block II, five months ahead of schedule, and 5) GoP making special allocation of PkR25bn to start construction of Bhasha Dam and Mohmand Dam.

Performance leaders during the week were: 1) ENGRO (+3.66%WoW), 2) NML (+3.29%WoW), 3) PSO (+3.21%WoW), 4) OGDC (+2.87%WoW) and 5) PPL (+2.34%WoW); while laggards included: 1) ASTL (-9.95%WoW), 2) MLCF (-8.99%WoW), 3) DGKC (-8.35%WoW), 4) PIOC (-7.52%WoW) and 5) FCCL (-6.83%WoW). Moreover, foreign participation remained in the negative zone with US$4.45mn outflows compared to US$29.55mn outflows in the preceding week.


With the conclusion of Ramadan and Eid holidays, next week commencing from Tuesday (Jun 19) anticipated to be happening session for the market, where investors will likely to take direction from 1) upcoming OPEC meeting in Vienna on Jun 22 and 2) any developments with regards to Pakistan action plan for the review by the FATF in its plenary meeting, scheduled to take place in France from Jun 24-29.

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