FLASHNEWS:

AKD Securities Limited – AKD Daily (May 02, 2023)

Karachi, May 02, 2023 (PPI-OT): Pakistan Strategy - Apr’23 Market Review and Outlook

KSE100 Index closed on a positive note during the month, with the index increasing cumulatively by 1,580ppts to end at 41,581 points, a gain of 3.9%MoM. Market participation declined by 20%MoM, with daily traded volume averaging 188.1mn shares, down from an average of 234.9mn shares in the previous month.

Pakistan posted a current account surplus of US$654mn for Mar’23 vs. a deficit of US$36mn in Feb’23. SBP held reveres rose to US$4.5bn as of 20th April, against US$4.2bn at the end Mar’23.

Refinery sector had remained in the limelight during the month on hopes of a refinery policy being approved, and posted returns of ~7.8% over the course of the month. Whereas, on the back of earnings growth, Banks, E and Ps, and Fertilizers also posted healthy monthly returns of 5.6%/3.7%/3.4%, respectively.

Going forward, success on the back of the IMF program and political stability (announcement of election dates) will determine the market’s fate. We advise investors to take a cautious approach and investments should be made in dollar denominated sectors (E and Ps and Technology) or companies with healthy dividend yields.