MCB: MSCI euphoria gains price in potential synergies with NIB; Maintain HOLD – By Elixir Research

<ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">MCB bank has rallied by a massive 19% during the current month, outperforming the benchmark index by a considerable 13pp where we attribute the same to MSCI euphoria kicking in. This has led to in our view for potential synergies with NIB to be priced in.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">MCB reported 1Q2017 earnings at PKR5.30/sh, down 4% YoY with net interest income declining by 14% YoY as yields on investment continued its slide owing to re-pricing of higher yield PIBs at lower rates coupled with pressure on spreads on advances amidst increased liquidity in the banking space.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">MCB&rsquo;s repo borrowings as of 1...