Karachi Stock Exchange Weekly Analysis 23 February, 2015

The Karachi Stock Exchange (KSE) market was Flat despite strong results & positive newsflow. KSE-100 index closed on 3 3,993 by gaining 50 points or 0.15% while KSE-30 index closed on 22,139 by gaining 143 points or 0.65%.

KSE-100 index moved sideways as earnings season failed to generate excitement at the bourse. The benchmark index ended the week at 33,933pts (↑0.1% WoW) with little changed. The market remained tightly range bound and gave an almost flat closing of 33,993 points (+0.1% WoW), despite a strong set of annual/half yearly results and healthy corporate and macro news-flow. ADTO fell 22% WoW to 212mn shares, in line with 30% decline in ADV to US$115mn. FIPI was positive, clocking in at US$3.3mn vs US$0.8mn last week.

According to experts of http://www.karachistockexchange.org, following news have played vital role in Karachi Stock Market index movement:

  • The results laden week saw the market remaining largely flat as the cement sector pared gains seen earlier on account of increased chatter regarding DGKC’s expansion plans in the south
  • Cements took a beating during the week, with the sector correcting by 2.7%, as price war concerns resurfaced on news flow regarding DG’s expansion. LUCK and DGKC cumulatively pulled the index down by 61pts
  • Strong payout by ENGRO reinvigorated interest in the company; the stock led the value traded charts and pushed the index by 62pts during the week
  • Average daily volumes remained relatively flat, clocking in at 133mn shares (↓6%)
  • After continuous selling in recent weeks, foreigners mopped up shares worth USD9.33mn during the current week
  • Inflation to stay within 4.5%-5.5% range
  • ENGRO to develop 660MW coal based power plants
  • Carte blanche: Oil industry bigwigs may receive a free hand
  • 7MFY15: Current account deficit shrinks USD230mn
  • Pakistan finalizes USD21bn LNG deal with Qatar
  • POL prices may climb up by Rs 4.5 per liter
  • Tyres industry can attract foreign investment
  • Reserves rise to $16.036bn
  • ECP okays 12 nominations for Senate
  • Ahead in time: Govt to implement $51m plan for Tarbela project
  • Results of blue chip IPP’s were largely in line with market expectations, keeping both HUBC and KAPCO in the green
  • On the banking front HBL came in with better than expected cash dividend, probably to make up for a lack of bonus payout. On the mid‐tier level BAHL was in line with street estimates while MEBL posted another positive surprise. NBP remained wanted as investors expect a stout payout from the bank
  • Nepra approves upfront tariff for Port Qasim plant
  • Share purchase: Ismail Industries eyes 24.5% stake in Bank of Khyber
  • K‐Electric pays loans worth PKR18bn
  • 6‐month T‐bills yields decline by 9bp
  • Despite stiff resistance from local manufacturers, the government is likely to cut import duty by 22‐40% across the board on localised and non‐localised car parts for new entrants under the new auto policy in a bid to break the monopoly of existing players
Top gainers of last week were: Bata (Pak) Ltd, Nishat Power Ltd, Nishat Chunian Power, Soneri Bank, Engro Corp, B.O.Punjab, Pak Services, Pakistan Cables, Grays Of Cambridge and Pakgen Power Ltd

Top losers of last week were: Mari Petroleum, Pak Tobacco Co, Stand.Chart.Bank, EFU General Ins, Kohinoor Textile, Cherat Cement, Atlas Honda Limited, Jah.Sid.Co., Jubilee general Ins and Efu Life Assur Ltd

Top ten volume leaders: JSCL, BOP, KEL, FCCL, DGKC, MLCF, ENGRO, TRG, EFERT, LPCL and HUMNL.

Following are few BUY recommendations:

Kot Addu Power Co (KAPCO) – BUY
Current Price: PKR 82.64
Target Price: PKR 97.0 

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 212.05
Target Price: PKR 284.00

Pak Oilfields (POL) – BUY
Current Price: PKR 380.89
Target Price: PKR 442.00

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 175.74
Target Price: PKR 221.00

Attock Petroleum (APL) - BUY
Current Price: PKR 539.61
Target Price: PKR 626.00

Allied Bank Limited (ABL) – BUY
Current Price: PKR 109
Target Price: PKR 140.0 

Habib Bank Limited (HBL) – BUY
Current Price: PKR 205.05
Target Price: PKR 262.00

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 32.5
Target Price: PKR 39

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 50.14
Target Price: PKR 68.00 

Cherat Cement (CHCC) - BUY
Current Price: PKR 76.67
Target Price: PKR 95.00 

Pak Suzuki (PSMC) - BUY
Current Price: PKR 424.14
Target Price: PKR 495

DG Khan Cement (DGKC) – BUY
Current Price: PKR 123.9
Target Price: PKR 153.5

Maple Leaf Cement Factory (MLCF) – BUY
Current Price: PKR 55.1
Target Price: PKR 68.0 

Fatima Fertilizer (FATIMA) - BUY
Current Price: PKR 37.3
Target Price: PKR 51.7

Nishat Mills (NML) - BUY
Current Price: PKR 128.1
Target Price: PKR 163.5

United Bank Ltd (UBL) – BUY
Current Price: PKR 171.0
Target Price: PKR 210.0

Following are few SELL recommendations:

Hub Power Co (HUBCO) – SELL
Current Price: PKR 87.16
Target Price: PKR 71.00

Nishat Power Ltd (NPL) – SELL
Current Price: PKR 49.84 
Target Price: PKR 38.00

Pakgen Power Ltd. (PKGP) – SELL
Current hn6Price: PKR 33.48
Target Price: PKR 24.00

National Bank (NBP) – SELL
Current Price: PKR 67.71
Target Price: PKR 53.00

Thank you very much for reading this article.

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

Written by: Rana Khurram

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