B+ Weekly Analysis 2015

• Book building of Amreli Steels Limited was completed. A total of 138.8mn shares were received against the offer of 55.5mn shares, at a strike price of Rs51/share.
• Oil & Gas, construction & material and Commercial banks were major gainers during the week, increasing by 8%, 4% and 2%, respectively. Tobacco and Life Insurance were major losers, down 4% and 3%, respectively
• Moody’s assignment of a B3 rating to Pakistan’s global bond and regarding economic outlook as ‘stable’, and most importantly
• Pakistan Petroleum Limited (PPL), through a KSE notice, has disclosed the discovery of gas from the Latif South-1 exploration well. PPL has a 33.34% stake in the joint venture of the Latif exploration license. Our analysts predict a positive impact of Rs0.18 on PPL's EPS
• GoP borrowing PkR97.6bn vs. targeted PkR50bn in PIBs auction with cut‐off yields for 3yr, 5yr and 10yr coming in at 7.196% (down 15bps), 8.180% (down 15bps) and 9.229% (down 11bps)
• Comfortable reserves position as a result of US$505mn from the International Monetary Fund (IMF), US$500mn from issuance of Sukuk bonds and US$376mn under the Coalition Support Fund (CSF)
• IMF’s detailed assessment report on its eighth review under EFF managed to only uphold positivity with its allocation of a threshold for circular debt and an urge to improve recovery of DISCOS (Distribution Companies)
• Sharp recovery was seen in international oil prices during the week as Arab Light/WTI Crude was up 12%/9% WoW. Resultantly, Oil & Gas sector at KSE index marched up 8% WOW