AKD Securities Limited – Stock Smart

Karachi, November 16, 2018 (PPI-OT): Weekly Review

KSE-100 Index remained range bound throughout the week touching a low of 40,994pts before closing at 41,661pts (+0.66%WoW). We witnessed a weak start of the week as uncertainties around the Chinese package and materialization of Saudi package amid IMF negotiations kept investors on the err side of caution. However, bulls mustered strength in the latter part of the week to give a positive close, not giving a not-so-subtle salute to MSCI Review. To highlight, MSCI on Nov 14’18 announced its semi-annual review where it declassified LUCK and UBL from the Standard Index to Small Cap Index and downgraded HCAR and MLCF from the EM index.

Consequent to exclusion of LUCK and UBL, Pakistan’s weight has been reduced to 0.4% in the MSCI EM index from 0.7% in May’18. Market activity remained strong with ADT standing at 213.3mn shares vs. 196.5mn shares in the previous week as local participants bounced on cheap valuations. ADTV for the week stood at US$88.9mn vs. US$77.9mn in the previous week. A closer look suggests activity to have been tilted towards the main board with ADTV of KSE-100 Index/KSE- All share Index at 81.4% (30W high) vs. 73.2% recorded in the previous week. Top five weekly gainers (AKD Universe) are, 1) PIOC (+17.64%), 2) CHCC (+10.38%), 3) PSMC (+6.99%), 4) MCB (+4.69%), and 5) HBL (+4.16%), while the losers (AKD Universe) are, 1) PPL (-2.26%), 2) HASCOL (-2.47%), 3) PTC (-3.08%), 4) KEL (-3.29%), and 5) ASTL (-4.44%).