Karachi Stock Exchange Weekly Analysis 4 January, 2015

The Karachi Stock Exchange (KSE) market movement was bullish. The Karachi Stock Exchange maintained bull-run during the outgoing week, as the KSE-100 Index hit an all-time high to close above 32,000 points, amid low inflation numbers. KSE-100 index closed on 32,731 by gaining 738 points or 2.3%, while KSE – 30 index closed on 21,234 by gaining 454 points or 2.18%.

Average daily volume rose by 3.4 percent to 232 million shares per day against 225 million shares.

Following news have played vital role in Karachi Stock Market index movement:

  • CPI inflation up 4.3 percent in December
  • Cement and fertilizer sectors led the rally on strong earnings outlook for October-December 2014 quarter, while pharmaceuticals lagged behind due to the proposed drug policy
  • New IPO SPEL coming Date 6, 7 January, 2015. Price Rs. 30 / share
  • Disbursements of US$1.6bn from multilateral and bilateral donors during 5MFY15 pushing total liquid FX reserves to US$15.09bn at the start of the week, with the US promising to release US$532mn as part of the Kerry‐Lugar Act
  • Ministry of Water and Power imposing a PkR0.6/KwH surcharge on electricity tariffs lowering the proposed reduction in fuel adjustment surcharge to PkR2.37/KwH
  • 20 percent increase in gas price likely
  • Foreign reserves decline by $60m
  • Cement prices reduce by up to Rs20/bag
  • Pharmaceutical producers in a fix on DRAP’s hostile drug policy
  • Attock Cement has signed a MoU with K‐Electric for the installation of 40MW coal fired power plant at its factory situated in Hub, Balochistan
  • Across the world: Islamic banking assets cross $2t
  • Corporate income tax returns filing dropped by 47 percent
  • The Pakistani Rupee was trading at Rs. 100.70 / $US at the end of the week and Rs.100.65/ $US in the beginning of the week
  • Gold was trading at $1182.00 at the end of the week (week’s beginning: $1197.90), Silver was trading at $15.70 at the end of the week (week’s beginning: $16.10 ) and Crude Oil was trading at $53.45 at the end of the week (week’s beginning: $56.47)
  • Soft CPI inflation at 4.3 percent on year-on-year basis for December 2014 boosted the sentiment, as investors’ eye a discount rate cut in the upcoming monetary policy statement scheduled to be announced this month
  • PPL has struck oil and gas at its exploration well in Sanghar District, Sindh, the state-run firm said on Friday, referring to a region where the company previously made five successful discoveries during the year. PPL said the well produced a flow rate of 2100 barrels per day condensate and 11.05 mn cubic feet of gas per day in the initial test
  • Index heavy weight MCB alone contributed 102pts to the index while LUCK, ENGRO, FCCL and NATF collectively added 210pts during the week
  • EFERT, NATF, EFUL, EFOODS and FCCL remained in the limelight and gained 15.3%, 14.0%, 13.3%, 13.2% and 12.7% WoW respectively
  • SECP grants permission to Bank Islami for right shares
  • The government gave a mixed New Year gift to the nation on Wednesday by reducing oil prices by up to 13%. But at the same time it imposed an additional 5% general sales tax on all petroleum products
  • The government has missed its half‐year tax collection target by a margin of PRs 90 billion, a gap that is expected to widen further
  • Decline in urea sales by 15 percent on year-on-year basis in November 2014
  • Reduction in petroleum products prices by Rs6.25 to Rs14.14 per litre
  • Collection of tax revenue by the Federal Board of Revenue rising by 12 percent on year-on-year basis in 1HFY15

Top gainers of last week were: Engro Fertilizer, National Foods, EFU Life Assurance Ltd., Engro Foods Ltd., Fauji Cement Ltd., Arif Habib Corporation, Murree Brewery Co Ltd., Avanceon Ltd., Cherat Cement, and Kohinoor Textiles.

Top losers of last week were: Pak Suzuki Motor, J.D.W Sugar, Sui South Gas, Searle Pak, Abbot Lab, Sui North Gas Pipeline, Archroma Pakistan, Colgate Palmolive, United Bank, and Oil and Gas Development.

Top ten volume leaders: BOP, MLCF, BAFL, PTC, AICL, EFERT, JSCL, ABOT, ENGRO, LPCL, and FCCL.

Following are few BUY recommendations:

Engro Polymer Chemicals (EPCL) - BUY
Current Price: PKR 12.49
Target Price: PKR 16.5

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 208.56
Target Price: PKR 282

Pak Oilfields (POL) – BUY
Current Price: PKR 384.87
Target Price: PKR 448

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 179.69
Target Price: PKR 221

Attock Petroleum (APL) – BUY
Current Price: PKR 532.77
Target Price: PKR 612.00

Allied Bank Limited (ABL) – BUY
Current Price: PKR 114.03
Target Price: PKR 177.00

Habib Bank Limited (HBL) – BUY
Current Price: PKR 218.80
Target Price: PKR 262.00

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 33.94
Target Price: PKR 39

K-Electric Limited (KEL) – BUY
Current Price: PKR 9.6
Target Price: PKR 12.1

Following are few SELL recommendations:

Kot Addu Power Co (KAPCO) – SELL
Current Price: PKR 80.01
Target Price: PKR 58.0

Nishat Power Ltd (NPL) – SELL
Current Price: PKR 47.43
Target Price: PKR 38.00

Nishat Chun Power (NCPL) – SELL
Current Price: PKR 50.89
Target Price: PKR 43.00

Pakgen Power Ltd. (PKGP) – SELL
Current Price: PKR 28.90
Target Price: PKR 24.00

National Bank (NBP) – SELL
Current Price: PKR 68.96
Target Price: PKR 53.00

Thank you very much for reading this article.

NOTE: The information posted in this blog (forum) is based on current affairs & investors point of view. There may be discrepancy in the ground realities.

Written by: Rana Khurram

No comments:

Post a Comment