Saturday, 3 August 2013

Askari Bank Limited : The Worst Seems Over!



AKBL reported a huge misfortune of PKR 5.76/share for its 2QCY 2013 headed by a robust procurement of more than PKR = 6 billion (23x higher YoY) in what appeared as a book cleaning practice although a duty inversion of PKR = 2.4 billion weakened its effect. Besides it additionally declared a rights issue of 55% at standard so as to meet its administrative least capital necessity (MCR). With this misfortune AKBL's book quality is required to weaken to PKR = 18.45 / share and issuance of right imparts later in the year will expedite further weakening, which according to our gauges could decrease to PKR = 16.25 / Share by the year close. In light of yesterday's shutting cost of PKR = 14.82 we feel the scrip exchanges at a markdown of 9% to the bank's changed book quality of PKR = 16.25

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