Morning Call Wednesday

Morning Call April 21, 2010 Wednesday

Market Review Today KSE-100 Index 10,641.52 Market is expected to remain range bound today. Going forward Change (In Points) -28.36 Pakistan Rupee appreciation, budget related triggers and healthy foreign DoD Change (In %) -0.27 portfolio investment would support the market. We advise investors to High CY2010 (15-Apr-10) 10,677.47 Low CY2010 (4-Jan-10) 9,437.85 refrain from day trading and invest with a minimum time frame of three Turnover (Shares in mil) 137.06 to six months. We recommended investors to accumulate fundamentally DoD Change (Shares in mil) -29.86 strong scrips like LUCK, ACPL, APL, PSO, PPL, BAFL and UBL on dips. Gainers/Losers 176/208 6 Months KIBOR (In %) 12.35 Attock Petroleum Limited (APL) 9M-FY2010 earnings review T-Bills 12 Months (In %) 12.33 APL reported profit after tax of PKR 2.3 billion (EPS: PKR 40.34) for 9M- PIB 10 Years (In %) 12.63 FY2010 as compared to PKR 2.2 billion (EPS: PKR 38.51) in the Futures Volume (in mil) 22.02 Futures Value (in mil) 1,396.69 corresponding period last year, marking YOY improvement of 5%. FIPI (in mil) $6.27 Volumetric growth in the retail fuel segment and improvement in cash Forex Market balances were the major contributors to the YOY jump of 5% in the Currency Inter-Bank Open market bottom line of the Company. Dollar 84.17/84.19 84.05/84.35 Euro 113.00/114.00 Profit & loss - Highlights 9M-FY2010 9M-FY2009 Chg YOY Pound sterling 128.00/129.00 Net sales 58,462 45,044 30% News Highlights Cost of sales 56,037 42,742 31% Economy: Gross profit 2,425 2,303 5%  Federal Budget to be presented in June (Business Recorder) Other operating income 662 623 6%  Accord on measures to ease energy crisis Operating expenses 370 378 -2% (Dawn) Operating profit 2,716 2,547 7% Income on bank deposits 705 630 12% Electricity: Profit before tax 3,114 3,029 3%  Cabinet to review KESC performance today Taxation 791 812 -3% (Business Recorder) Profit after tax 2,323 2,218 5% Earnings per share (PKR) 40.34 38.51 5% Gross margin 4.1% 5.1% Operating margin 4.6% 5.7% Board Meetings Net margin 4.0% 4.9% Kot Addu Power 21-Apr-10 9:00 AM IGI Insurance 21-Apr-10 2:00 PM Sources: KSE Notice Pakistan Refinery 21-Apr-10 10:00 AM MCB Bank 21-Apr-10 2:00 PM Key points Habib Metro. Bank 21-Apr-10 3:00 PM Lakson Tobacco 21-Apr-10 11:00 AM  Net revenues of the Company topped by 30% YOY to PKR 58.4 billion Bata Pakistan 22-Apr-10 11:00 AM during 9M-FY2010 as compared to PKR 45 billion in the identical Shell Pakistan 22-Apr-10 10:00 AM period last year. 126% and 89% YOY increase in MS and HSD Lucky Cement 22-Apr-10 11:30 AM Sitara Chemicals 22-Apr-10 4:30 PM volumes, respectively lead to the impressive growth in the net Habib Bank 22-Apr-10 10:00 AM revenues. Pakistan State Oil 22-Apr-10 11:00 AM Lotte Pakistan 22-Apr-10 3:30 PM DG Khan Cement 22-Apr-10 11:30 AM  Gross profit of the Company improved by 5% during the period Thal Limited 22-Apr-10 3:30 PM Pakistan Petroleum 23-Apr-10 10:00 AM under review however, the Company suffered decline in the gross Meezan Bank 23-Apr-10 9:30 AM margin to 4.1% as compared to 5.1% in the corresponding nine Attock Cement 23-Apr-10 5:00 PM months last year due to higher volumetric share in the regulated Engro Polymer 23-Apr-10 9:30 AM JS & Company 24-Apr-10 12:30 PM retail fuel segment where margins are lower as compared to the Nishat Mills 24-Apr-10 10:00 AM deregulated products. JS Investments 24-Apr-10 10:30 AM Allied Bank 24-Apr-10 10:30 AM Unilever Pakistan 26-Apr-10 10:00 AM  Income on bank deposits and investments surged by 12% during the Tri Pack Films 26-Apr-10 12:00 PM United Bank 26-Apr-10 2:00 PM period under review from PKR 630 million to PKR 705 million, Askari Bank 26-Apr-10 10:30 AM mainly on the back of 17% YOY increase in the average cash JS Global 26-Apr-10 4:00 PM balances held by the Company during 9M-FY2010. International Ind. 27-Apr-10 12:00 PM Sui Southern Gas 27-Apr-10 10:30 AM Pak Suzuki 27-Apr-10 3:00 PM Thatta Cement 27-Apr-10 3:00 PM

Important notice: The information contained herein is compiled from sources AHL believes to be reliable, but we do not accept responsibility for its accuracy or completeness. It is not intended to be an offer or a solicitation to buy or sell any securities. AHL and its officers or employees may or may not have a position in or with respect to the securities mentioned herein and they do not accept any liability whatsoever for any direct or consequential loss arising from the use of this publication and its contents. AHL may, from time to time, have a consulting relationship with a company being reported upon. All opinions and estimates contained herein constitute our judgment as of the date mentioned in the report and are subject to change without notice. AHL (Equities Research Dept.): Phone: 2415213-15 Fax: 2429653

Morning Call April 21, 2010 Wednesday

Arif Habib Securities 27-Apr-10 4:00 PM Recommendation Clariant Pakistan 28-Apr-10 11:00 AM Our DCF based June 2010 target price for the scrip works out to PKR Engro Corporation 28-Apr-10 9:30 AM IGI Investment Bank 28-Apr-10 3:00 PM 486 per share. At current price level the stock of APL is trading at a Oil & Gas Develop. 28-Apr-10 10:00 AM discount of 25% to its target price. Besides the attractive discount to the Hub Power 28-Apr-10 10:00 AM target price, the scrip is trading at prospective PER of 7.2x and offers Siemens Pakistan 29-Apr-10 3:00 PM dividend yield of 6.3%, thus we recommend Buy. Pakistan Engineering 29-Apr-10 11:00 AM Safe Mix Concrete 30-Apr-10 4:30 PM Upcoming Events Syed Abid Ali T-Bills Auction 21-Apr-10 [email protected]