Pakistan Weekly September 14, 2018 REP‐057

Topline Market Review KSE‐100 Index: +0.2% WoW (+65 points)

Topline Research Best Local Brokerage House [email protected] Brokers Poll 2011-14, 2016-17 Tel: +9221‐35303330, Ext: 133 Topline Securities, Pakistan www.jamapunji.pk Best Local Brokerage House 2015-16 Equities erase early week’s losses to close flat, up by meager 0.8% wow

Market Weekly Data KSE Volume & Value KSE‐100 Index 40,920.31 (Shares mn) Volume Value (US$mn) 1‐Week Change (%) 0.2% 160 60 134 Market Cap (Rs tn) 8.5 108 50 1‐Week Change (%) ‐0.3% 82 40 Market Cap (US$ bn) 68.1 56 30 30 1‐Week Change (%) ‐0.3% 18 18 18 18 18 ‐ ‐ ‐ ‐ 1‐Week Avg. Daily Vol (shares mn) 139.0 ‐ p p p p p ee ee ee ee ee S S S S S ‐ ‐ ‐ ‐ 1‐Week Avg. Daily Value (Rs bn) 5.8 ‐ 11 12 13 14 1‐Week Avg. Daily Value (US$ mn) 46.7 10 Source: PSX Source: PSX ƒ KSE‐100 index closed flat in the week under review, as the market added a meager 65 points to the index. Market remained range‐bound due to mixed news on economic measures to be taken by new government. At the start of the week, market was abuzz with possibility of a gas price hike which resulted in negative sentiment among investors. However the market rebounded as investors anticipated clarity on economic measures in the meeting of ECC held on 13 Sep, 2018. ƒ During the week, Oil & Gas Exploration Companies and Fertilizers were the best performing sectors, the former due to increase in oil prices during the week and the latter due to no change in gas prices despite rumors. On the other hand, Commercial Banks were seen under pressure as a result of foreign selling amounting to US$12.1mn. ƒ Foreigners sold US$26.1mn worth of shares during the week vs. net selling of US$9.9mn last week. On local front, insurance companies and mutual funds were net buyers amounting to US$11.8mn and US$10.6mn, respectively. ToplineHonda AtlasMarket Cars Review (HCAR) 2 Important News, Views & Corporate Announcements

ƒ OiOrix LiLeasing PkitPakistan (OLPL) announced its financ ia l result for FY18,reporting EPS of Rs10.05,upby 9% YYYoY. The increase in earnings was primarily led by 66% increase in income from other activities. Simultaneously, 3% decline in expenses also supported the bottom‐line. The company announced cash dividend of Rs3/share for 4QFY18, as well as a bonus of 20%. ƒ Kohinoor Mills (KML) reported its earnings for FY18, wherein its EPS clocked in at Rs4.70, up by 79% YoY. Despite 0.6ppt fall in gross margins, rise in profitability is attributable to 13.6% decline in expenses and ~2x increases in other income. The company also announced dividend of Rs1.2 per share for 4QFY18. ƒ (MARI) and (PPL) in a Ziarat joint venture (60% stake MARI, 40% stake PPL) have made a new oil discovery at exploratory well Bolan East‐1 in Ziarat Block, Balochistan province. The cumulative oil production is 1500bpd (Chiltan Formation at 810 bpd, Moro/Mughal Kot Formation at 690bpd). ƒ The country’s foreign exchange reserves fell by US$300mn during the week ended on Sept 7, announced the (SBP). The reserves of the central bank and commercial banks have been falling for the last few weeks. The SBP’s reserves declined by US$261mn while the holdings of the commercial banks by US$39mn during the week under review. ƒ The federal cabinet approved appointment of Haroon Sharif as chairman Board of Investment (BoI) – a one window facility under the Prime Minister Office for promotion of local and foreign direct investment. ƒ Criticizing the last PML‐N government for what it called wasting a lot of time, the PTI government announced that it would speed up implementation of the US$62bn China‐Pakistan Economic Corridor ((),CPEC), open it to other countries and hire international consultants for financial modeling of future projects. ƒ Federal Minister for Information Fawad Chaudhry rejected media reports that the Pakistan Tehreek‐e‐Insaf (PTI) led government was planning to increase income tax on salaried individuals, saying no such proposal was under consideration. Chaudhry's comments came after newspaper reports that the government was planning to reverse the tax concessions of the previous government and bring down the threshold of income tax exemption on salaried class. The minister also denied reports of an increase in gas and electricity tariff. ToplineHonda AtlasMarket Cars Review (HCAR) 3 KSE-100 Index KSE Market Capitalization

41,500 (US$bn) 41,050 40,920 69.00 41,000 40,684 40,760 40,522 68.50 68.37 40,500 68.13 68.00 67. 84 40,000 68.00 67.50 39,500 67.50

39,000 67.00 -18 -18 -18 -18 -18 p-18 p-18 p-18 p-18 p-18 pp pp pp pp pp ee ee ee ee ee 10-S 11-S 12-S 13-S 14-S 10-Se 11-Se 12-Se 13-Se 14-Se

Source: PSX Source: PSX

Mark et Cap. SectoSector-wise R eturn: T op 5 Gaine r / Lose r of th e w eek All Sha r e In dex: T op 5 Gaine r / Lose r of th e w eek 4% 3% 3% 3% Unadjusted prices 5% 2% 40% 31% 28% 27% 26% 0% 22% 20% -5% -2% -2% -2% -2% -3% -10% 0% -15% -20% -20% -21% Food Funds Textile -27% -28%

Telecom -40% -38% Vanaspati obile Parts L L T P A ngineering cellaneous M IL M Gas Explo. Gas ile Weaving AA PL AA UL mm ss PP BB OO EE TT FF TT tt && S D G Mi LE SF AT JO DK SM Oil Tex Auto AWW

Source: PSX Source: PSX ToplineHonda AtlasMarket Cars Review (HCAR) 4 Top 10 Average Volume Leaders Top 10 KSE-100 Index Points Contributors 54 52 60 51 45 15.0 30 11.8 12.5 30 10.0 8.1 0 656.5 757.5 5.7 5.7 -30 -24 -26 -29 -34 5.0 -60 2.5 -90 - -120 -111 L L CF OL H C O RG ITY FFL TL BL BL PL LE LL OO MM DD DD RR TT NN WW P U H P M M N U OG DA ENG NEST

Source: PSX Source: PSX Foreign: G.Buy, G.Sell & Net Sector‐wise During the Week Foreign: Buying, Selling & Net During the Week (US$mn) Gross Buy Gross Sell Net Gross Buy Gross Sell Net Oil and Gas Exploration Companies 3.2 (3.5) (0.4) 10‐Sep‐18 3.4 (4.1) (0.7) Fertilizer 2.2 (2.7) (0.5) 11‐Sep‐18 2.6 (5.1) (2.5) Cement 2.9 (11.8) (8.9) Food and Personal Care Products 0.9 (()0.9) (()0.0) 12‐Sep‐18 2.9 (9.1) (6.1) Textile Composite 0.1 (0.9) (0.8) 13‐Sep‐18 4.8 (13.1) (8.2) Technology and Communication 0.6 (0.8) (0.1) 14‐Sep‐18 5.2 (13.7) (8.5) Power Generation and Distribution 0.1 (3.0) (2.9) Commercial Banks 2.9 (15.0) (12.1) Weekly 19.0 (45.0) (26.1) Oil and Gas Marketing Companies 121.2 (1. 9) (0. 7) MthMonth to DtDate 37.1 (73.0) (35.9) All other Sectors 4.8 (4.5) 0.3 Total 19.0 (45.0) (26.1) Year to Date 1,591.9 (1,892.3) (300.4) Source: NCCPL Source: NCCPL ToplineHonda AtlasMarket Cars Review (HCAR) 5 LlLocal BBkanks: GBG.Buy, GSG.Sell & NtNet SStector‐wise DiDuring the WkWeek LlLocal BkBanks: GBG.Buy, GSG.Sell & NtNet DDiuring the WkWeek (US$mn) Gross Buy Gross Sell Net (US$mn) Gross Buy Gross Sell Net Cement 1.4 (0.8) 0.6 10‐Sep‐18 1.1 (0.5) 0.5 Fertilizer 0.7 (0.2) 0.5 11‐Sep‐18 1.5 (1.3) 0.2 Food 0.1 (0.1) 0.0 Oil and Gas Expl. 0.6 (1.0) (0.4) 12‐Sep‐18 1.0 ()(0.6) 0.4 Oil and Gas Mark. 0.5 (0.5) 0.0 13‐Sep‐18 1.7 (1.7) (0.0) Power 0.0 (0.0) (0.0) 14‐Sep‐18 2.6 (1.1) 1.4 Banks 1.8 (1.0) 0.7 Telecom 0.5 (0.2) 0.3 Weekly 7.8 (5.2) 2.5 Textile 0.3 (0.4) (0.1) Month to Date 14.7 (9.4) 5.4 Other Sectors 1.9 (1.1) 0.9 Total 7.8 (5.2) 2.5 Year to Date 500.1 (570.4) (70.6) Source: NCCPL Source: NCCPL Local Funds: GBuyG.Buy, GSellG.Sell & Net Sector‐wise During the Week Local Mutual Funds: GBuyG.Buy, GSellG.Sell & Net During the Week (US$mn) Gross Buy Gross Sell Net (US$mn) Gross Buy Gross Sell Net Cement 5.1 (2.1) 3.0 10‐Sep‐18 2.1 (2.6) (0.5) Fertilizer 1.8 (2.9) (1.0) 11‐Sep‐18 4.5 (4.0) 0.6 Food 0.4 (0.2) 0.2 Oil and Gas Expl. 272.7 (1. 9) 080.8 12‐Sep‐18 575.7 (3. 0) 272.7 Oil and Gas Mark. 1.1 (0.3) 0.8 13‐Sep‐18 6.1 (3.2) 2.9 Power 0.8 (0.4) 0.4 Banks 7.3 (2.2) 5.1 14‐Sep‐18 7.5 (2.6) 4.9 Telecom 0.2 (0.3) (0.1) Weekly 26.0 (15.4) 10.6 Textile 282.8 (0. 5) 242.4 MhMonth to Date 45.7 (36.4) 929.2 Other Sectors 3.7 (4.5) (0.9) Total 26.0 (15.4) 10.6 Year to Date 1,138.9 (1,154.3) (15.2) Source: NCCPL Source: NCCPL ToplineHonda AtlasMarket Cars Review (HCAR) 6 Board Meetings & AGM

Board Meetings S. No Company DATE Pakistan Time Venue 1Nishat Power Limited Monday, September 17, 2018 11:00 a.m. Lahore 2Merit Packaging Limited Monday, September 17, 2018 03:00 p.m. Karachi 3 Factory Limited Monday, September 17, 2018 03:30 p.m. Lahore 4Ibrahim Fibres Limited Monday, September 17, 2018 04:00 p.m. Lahore 5 Pakistan Tuesday, September 18, 2018 10:00 a.m. Karachi 6 Pakistan Petroleum Ltd Tuesday, September 18, 2018 10:00 a.m. Karachi 7 Nimir Resins Limited Tuesday, September 18, 2018 11:00 a.m. Lahore 8GulAhmed Textile Mills Tuesday, September 18, 2018 02:30 p.m. Karachi 9 Kohinoor Textile Mills Ltd Tuesday, September 18, 2018 03:30 p.m. Lahore 10 Kohat Cement Co. Ltd. Wednesday, September 19, 2018 11:00 a.m. Lahore 11 Ghandhara Industries Wednesday, September 19, 2018 02:00 p.m. Karachi 12 Unity Foods Limited Wednesday, September 19, 2018 03:00 p.m. Karachi 13 D. G. Khan Cement Co. Wednesday, September 19, 2018 12:30 p.m. Lahore 14 Ltd Wednesday, September 19, 2018 11:00 ama.m. Karachi 15 Mughal Iron & Steel Industries Wednesday, September 19, 2018 11:00 a.m. Lahore 16 Berger Paints Pakistan Monday, September 24, 2018 02:30 p.m. Karachi 17 Next Capital Limited Monday, September 24, 2018 03:30 p.m. Karachi Source: PSX

Shareholder Meetings S. No Company DATE Pakistan Time Venue 1Arif Habib Limited Saturday, September 15, 2018 10:30 a.m. Karachi 2Bestway Cement Monday, September 24, 2018 11:00 a.m. Islamabad 3 Attock Refinery Tuesday, September 25, 2018 11:45 a.m. Rawalpindi 4 Pakistan Oilfields Ltd Tuesday, September 25, 2018 11:00 a.m. Rawalpindi 5 Attock Petroleum Tuesday, September 25, 2018 12:30 p.m. Rawalpindi 6ICI Pakistan Tuesday, September 25, 2018 10:00 a.m. Karachi 7 International Steel Tuesday, September 25, 2018 11:00 a.m. Karachi 8 # Tuesday, September 25, 2018 10:00 ama.m. Karachi 9Arif Habib Corporation # Wednesday, September 26, 2018 04:30 p.m. Karachi 10 Atlas Battery Thursday, September 27, 2018 09:30 a.m. Karachi 11 Fauji Cement Company Friday, September 28, 2018 02:30 p.m. Rawalpindi 12 Waves Singer Pakistan #Friday, September 28, 2018 11:00 a.m. Lahore 13 Pakistan Cables Ltd Friday, September 28, 2018 10:30 a.m. Karachi 14 #Friday, September 28, 2018 10:00 a.m. Rawalpindi 15 Century Paper & Board Friday, September 28, 2018 10:00 a.m. Karachi 16 International Industries Friday, September 28, 2018 11:30 a.m. Karachi 20 Friday, September 28, 2018 10:30 a.m. KPK Source: PSX # EOGM

ToplineHonda AtlasMarket Cars Review (HCAR) 7 Analyst Certification and Disclosures

The research analyst(s), denoted by an “AC” on the cover of this report, primarily involved in the preparation of this report, certifies that (1) the views expressed in this report accurately reflect his/her personal views about all of the subject companies/securities/sectors and (2) no part of his/her compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this report. Furthermore, it is stated that the research analyst or its close relative have neither served as a director/officer in the past 3 years nor received any compensation from the subject company in the past 12 months. Additionally, as per regulation 8(2)(i) of the Research Analyst Regulations, 2015, we currently do not have a financial interest in the securities of the subject company aggregating more than 1% of the value of the company.

Rating System Topline Securities employs three tier ratings system to rate a stock, as mentioned below, which is based upon the level of expected return for a specific stock. The rating is based on the following with time horizon of 12‐months. Rating Expected Total Return Buy Stock will outperform the average total return of stocks in universe Neutral Stock will perform in line with the average total return of stocks in universe Sell Stock will underperform the average total return of stocks in universe For sector rating, Topline Securities employs three tier ratings system, depending upon the sector’s proposed weight in the portfolio as compared to sector’s weight in KSE‐100 Index: Rating Sector’s Proposed Weight in Portfolio Over Weight > Weight in KSE‐100 Index Market Weight = Weight in KSE‐100 Index Under Weight < Weight in KSE‐100 Index Ratings are updated daily to account for the latest developments in the economy/sector/company, changes in stock prices and changes in analyst’s assumptions or a combination of any of these factors.

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