BMA Today for May 18, 2012 
 
     FRIDAY 18 May 2012 
 
 

 

   

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At a Glance

Previous Market Session

Local Market    
 KSE 100 14,063.08

17.99
 KSE T. Value PKRbn 5.01

0.12
 10YR PIB 13.23

0.02
 6M KIBOR 12.02

0
 PKR/USD 91.85

0
Asia Pacific    
 BSE SENSEX 30 16,070.48

40.39
 NIKKEI 225 8,876.59

75.42
 STRAITS TIMES INDEX 2,822.61

8.54
 KUALA LUMPUR 1,544.21

8.17
 JAKARTA COMP. 3,980.50

0.02
 THAI SET 50 1,173.56

2.33
Middle East    
 DFM GENERAL 1,475.58

9.5
 TADAWUL ALL SHARE 7,099.90

0
 MSM30 INDEX 5,656.77

13.16
 KUWAIT SE WEIGHTED 409.45

3.68
 DSM 20 INDEX 8,455.33

12.43
Global Markets    
 OIL (NYMEX) 92.56

0.25
 US 10YrBOND 2.22

0
 LIBOR6MTH 0.74

0
 FTSE 100 5,338.38

66.87
 DOWJONES 12,442.49

156.06
 S&P 500 1,304.86

19.94
       
 
In Focus
BAFL: Shifting Fundamentals Garnering Growth

   We reinitiate our coverage on BAFL with a BUY stance stemming from slow down in NPL accretion and improving net interest margins

    1QCY12 earnings for BAFL improved by 29% QoQ due to 1) 4.5% enhancement in interest income 2) 21% decline in provisions charged and 3) 17% rise in non-interest income

    We expect net interest margins to average around 4.8% during CY12, 50 bps higher then the average of last four years

    The deposit base of the bank grew by 13.3% to PKR401bn during CY11 making BAFL the fifth largest bank. We believe that the bank will continue maintaining a conservative approach towards advances hence entire deposit growth will be routed to treasuries only

    BAFL’s NPL growth has decelerated to 7.8% in CY11. As a result, infection ratio currently stands at 9.6% while coverage stands at 62%

    Justified PB multiple of 1.03 and CY13 book value of PKR20/share leads to our target price of PKR20.6/share, yielding an upside of 21.3%; with a CY12 dividend yield 13%, the stock offers a total return of 33%. BUY!

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Media Watch

Economy: No respite: Power outages to continue for next two years \ Tribune
Economy: Current account deficit swells to $3.39 billion \ The News
Economy: Forex reserves down by $312m to $16.1 billion \ The News
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Trailblazer
Market in bear grip


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  Previous Session
Equity Round Up
Market in bear grip

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Forex Round Up
PKR is expected to trade between 90.70-91.10

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Fixed Income Round Up
Rates are expected to remain slightly same

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 Important Info  
 
 
 
   
 BMA CAPITAL - Pakistan's Premier Investment Group
  Capital Markets | Corporate Finance | Asset Management | Research | Retail Brokerage | Funds Distribution
   www.bmacapital.com    

DISCLAIMER
This memorandum is produced by BMA Capital Management Limited and is only for the use of their clients. While the information contained herein is from sources believed reliable, we do not represent that it is accurate or complete and should not be relied upon as such. Opinions expressed may be revised at any time. This memorandum is for information only and is not an offer to buy or sell, or solicitation of any offer to buy or sell the securities mentioned.