BMA Today for July 26, 2019 
 
     FRIDAY 26 July 2019 
 
 

 

   

Select Archives

 

At a Glance

Previous Market Session

Local Market    
 KSE 100 N.A N.A
 KSE T. Value PKRbn N.A N.A
 10YR PIB N.A N.A
 6M KIBOR N.A. N.A.
 PKR/USD N.A. N.A.
Asia Pacific    
 BSE SENSEX 30 N.A N.A.
 NIKKEI 225 N.A N.A.
 STRAITS TIMES INDEX N.A N.A.
 KUALA LUMPUR N.A N.A.
 JAKARTA COMP. N.A N.A.
 THAI SET 50 N.A N.A.
Middle East    
 DFM GENERAL N.A N.A.
 TADAWUL ALL SHARE N.A N.A.
 MSM30 INDEX N.A N.A.
 KUWAIT SE WEIGHTED N.A N.A.
 DSM 20 INDEX N.A N.A.
Global Markets    
 OIL (NYMEX) N.A. N.A.
 US 10YrBOND N.A. N.A.
 LIBOR6MTH N.A. N.A.
 FTSE 100 N.A N.A.
 DOWJONES N.A N.A.
 S&P 500 N.A N.A.
       
 
In Focus
Pakistan Fertilizers: Urea prices drop; what next?

   In the past few days, market leader FFC reduced its urea prices by a hefty PKR200/bag in response to assurances given by the government to (i) settle the GIDC dispute, and (ii) that the government would compensate the fertilizer sector in some other way. We opine that government may yet offer some additional incentive to the industry to either (i) completely pass on the impact of GIDC reduction or (ii) only partially pass on the impact. Likelihood of the latter occurring is higher than the former, in our view. At present we hold off from incorporating impact of recent PKR200/bag drop in urea prices as the situation remains fluid. However, we flag that impact of the aforesaid on FFC may be neutral, major positive for FFBL (1.2x) and negative for EFERT (-17%) & FATIMA (-20%). We maintain our Overweight stance on the Fertilizer sector. Our conviction on the sector is premised on its strong pricing power, defensive nature and high dividend yield. We reiterate our Buy calls on FFC (TP: PKR99/sh), EFERT (TP: PKR88/sh) & FATIMA (TP: PKR39/sh). Key risks to our thesis include (i) steep drop in int’l fertilizer prices, (ii) slowdown in domestic agricultural sector, and (iii) punitive regulatory action on urea prices.

Click to Read More

Media Watch

Sectoral: RLNG: SNGPL seeks special incentives tax regimes / Business Recorder
Sectoral: Urea sales grow 5pc to 2.87mtns in first half / The News
Economy: Forex reserves fall to USD14.862 billion / The News
Click to Read More

Trailblazer


click to view

  Previous Session
Equity Round Up


Click to View
Forex Round Up


Click to View
Fixed Income Round Up


Click to View
 
 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.