KSE-100 equities reacted to mix bag of news as politics remained key concern for investors on new development over memo gate controversy after PM blamed Army for plotting against civilian administration. However, Chief of Army Staff voiced its strongest support for democracy and condemned rumors of any administration change. Local institution opted to trade very [...]

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We lower Descon Oxychem’s (DOL) 2012/13E EPS estimates from PRs0.8/1.5 to PRs0.3/0.7, PO from PRs9 to PRs4.5 and downgrade the stock to Neutral. Our conservative view is based on weak near-term demand from textile sector, depressed prices and cost pressure from planned 14% gas price hike. We believe depressed demand from textile industry could raise [...]

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Top Five List of Most Watched YouTube Ads So here we go with 2011 coming to a close, lists will be back for a while. These are top five most-watched YouTube ads of 2011 and that is a fact! This top five list is based on what consumers actually watched, rather than the opinion of [...]

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Fauji Fertilizer Company’s (FFC) stock price is down 16% over 2-mths on negative sentiments built on urea price cut, decline in int’l urea prices and imposition of cess from Jan-12. We believe market has over-played the negatives and ignored potential triggers. With govt. failing to meet its commitment to supply gas in winter, Engro has [...]

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Engro Fertilizer has announced an increase in urea price by PKR 100/bag to PKR 1,580/bag (PKR 1,362/bag ex-GST) following another cut in gas supply to its Engro EnVEn plant despite the commitment by govt, where gas supply has been diverted to domestic consumers. We assume others will follow suit before another gradual increase expected after [...]

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We reinstate coverage on DG Khan Cement (DGKC) with a Buy rating. Our PO of PRs24/sh implies 33% upside from current levels. Our SOTP-based PO includes PRs6/sh for DGKC core operations and PRs18/sh for the company’s portfolio (90% contributed by MCB Bank). With DGKC core operations turning profitable after 7 quarters in red, we believe [...]

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No wiggle room left:  State Bank of Pakistan estimates for major FY12 macroeconomic targets are lower than GoP’s budget projections, though it has highlighted avenues of upside, specifically from likelihood of weaker oil prices and continuation of strong remittances. While highlighting the need for taking key fiscal measures – broadening of tax base, improving collection machinery, [...]

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As per details released by the SBP, balance of payments deficit has touched US$1.7bn in 5MFY12, reaching close to our full year projection of US$1.8bn. This is primarily led by 3.6x jump in CAD to US$2.1bn, whereas financial account surplus contracted to US$169mn on lower than expected sovereign flows. While current account deficit reading came [...]

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KSE-100 index recovered after testing its channel support as well as its support level at 11,056 points. This is potentially bullish, however a confirmation is required. The Stochastic Oscillator has now become oversold while the RSI is about to enter its oversold region as well. The first support for KSE-100 is at 11,057 points and [...]

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Gold Trend! Technical: Gold is in selling pressure still buy gold above $1598 next upside target will be $1615,$1628 and $1645, use stoploss at $1558. Fundamental: Gold wallowed near a 2-1/2-month low on Thursday after dropping 3.5% in the previous session, as investors remained nervous about the euro zone debt crisis amid the year-end rush [...]

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Remittance growth slows down: While 5MFY12 remittances at USD5.2bn show a stellar growth of 18%, Nov-11 remittance was down 0.2% YoY for Pakistan. Two of the first five months of current fiscal year now show a YoY decline in remittances. We expect FY12 remittance to grow by 6% to USD11.9bn, against an average annual growth [...]

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Auto Sales, Dual impact mar sales in Nov11 According to data released by PAMA, volumes for cars & LCVs went up by 2% YoY to 11,884 units, while it declined by 21% on a MoM basis. We believe declining volumes are mainly attributable to the year end effect. On a company wise basis, PSMC witnessed [...]

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