Pakistan Equities | BMA Technical View: KSE100 - Further upside is expected, BUY Cements! (March 02, 2018)
Bulls fully dominated yesterday's trading session with benchmark index trading in the positive territory almost throughout the day, gaining 271 points (0.63%) to close the day at 43,510 level. Major push came from the cement sector where almost all the scrips closed in the positive territory. Total market participation clocked in at 211.95mn shares, up 40% DoD.
Going forward, we expect the sentiment to remain positive, where market may test the resistance level of 44,000. Any closing above the mentioned level will potentially lead the index further upward to ~44,400 levels. As long as the support level of 43,150 is held, one can stay invested in the market.
Cement and Steel stocks look attractive at current level, therefore we advise an accumulation stance on Cements (LUCK, DGKC, KOHC, ACPL, PIOC and MLCF) and Steel (ASL, ISL and CSAP). MLCF achieved its initial target and is now all set to target PKR74-76; we are still bullish on MLCF and recommend a HOLD stance on MLCF. Other notable stocks to watch out for accumulation/Hold include ENGRO, EFERT, EPCL and NML. We also keep our bullish stance on SNGP with next short-term target of PKR122-124.For more top picks please download the attached pdf report.
BMA is amongst the leading financial groups in Pakistan. BMA Capital’s core areas of business include Capital Markets, Corporate Finance & Advisory, Asset Management, and Financial Products Distribution. BMA Capital is the leader in privatisation advisory in Pakistan, having successfully advised on over 50% of all privatisations in Pakistan, by value, in transactions valued in excess of US$4 billion. Recent transactions include joint lead managing the $813 million GDR Offering of 10% of OGDCL on the London Stock Exchange in 2006-07, and advising Etisalat on their successful acquisition of a 26% strategic stake in Pakistan Telecommunications Company Limited (PTCL) for US$2.6 billion, the largest M&A transaction and foreign direct investment in Pakistan’s history. The firm is among the top brokers in the Pakistan equity and treasury markets, and is among a handful of firms that comprehensively cover all segments of the capital markets. This is supported by a very strong and independent research capability, which is quoted regularly in both local and international media. BMA Capital’s retail brokerage brand, BMA Trade, has launched a nationwide network of branches as well as a comprehensive online trading platform, enabling investors across Pakistan to take part in the capital markets.
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