Karachi Stock Exchange Weekly Analysis 12 April, 2015

The Karachi Stock Exchange (KSE) market followed up on last week’s bull run by gaining another 3% WoW behind positive macro and corporate catalysts to close at 32,351 points. KSE-100 index closed on 32,351 by gaining 937 points or 2.98% while KSE-30 index closed on 20,515 by gaining 629 points or 3.16%.

While ADTO fell 5% WoW to 240mn shares, value traded inched up by 15% WoW to US$135mn/day as investors preferred to trade undervalued blue chips. Foreigners liquidated US$6.5mn from the market this week, as opposed to investing US$4.1mn last week.

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

  • The HBL privatization deal ending expected to fetch ~US$1bn at a floor price of PkR166/sh
  • Total Fx reserves reaching US$16.7bn on receipt of the US$501.4mn tranche from IMF
  • Launch of the National Custodial Services (NCS) that provides capital market investors an option to directly settle their trades and transactions with the NCCPL
  • Electricity tariff reduction by PkR4.43/unit for DISCOs, except K‐Electric, to be effective from May’15
  • The Government of Sindh has challenged the Federal govt over the lack of involvement in the decisions pertaining to the import of LNG, Gas Development Surcharge (GDS), and Gas Infrastructure Development Cess (GIDC)
  • Pakistan Oilfields Ltd (POL) has notified revision in oil & gas production from discovery well at Mardankhel located at Tal block
  • Total Cement dispatches are up 4% to 25.65mn tons in 9MFY15, compared to 24.78mn tons in the same period last year, as per APCMA data
  • News reports suggest that the government is considering introducing a uniform gas tariff of PRs750/mmbtu for all sectors from July‐15
  • SBP reserves reach US$11.6bn
  • On the political front, Yemen crisis dominated the news flow this week, with a key feature being an opposition party (Pakistan Tehrik e Insaf)’s comeback in the parliament after a 7‐month long boycott, for sessions called to discuss Pakistan’s role in the Yemen conflict
  • Handsome new discoveries at the TAL block kept both POL and PPL in race mode as these stocks showed a stout recovery in their prices despite volatility in oil prices
  • PTC resurfaced after a long break as chatter of the ICH being reformed excited market participants
  • The major gainers of the week featured MARI and POL that gained momentum on account of bullish sentiments in crude, while strong results expectations propelled PAEL into a fresh trail of advances
  • Cotton output hits record high of 14.83 mn bales

Top gainers of last week were: Jah.Sidd. Co., Kohinoor Textile, Punjab Oil, Kohat Cement, TRG Pakistan Ltd, Pak Elektron, Mari Petroleum, Pak Oilfields, Atlas Honda Limited and Archroma Pakistan.

Top losers of last week were: Jubilee Gen Ins, Lafarge Pakistan, Shifa International Hospitals, EFU Life Assur Ltd., Habib Metro Bank, Pioneer Cement, Soneri Bank, EFU General Ins, Stand.Chart.Bank and Rafhan Maize Prod.

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

Following are few BUY recommendations:

Lucky Cement (LUCK) – BUY
Current Price: PKR 477.7
Target Price: PKR 552.00

Cherat Cement (CHCC) - BUY
Current Price: PKR 80.87
Target Price: PKR 95.00

Fatima Fertilizer (FATIMA) - BUY
Current Price: PKR 40.0
Target Price: PKR 50.3

Fauji Fert. Bin Qasim Ltd. (FFBL) - BUY
Current Price: PKR 49.7
Target Price: PKR 62.4

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 175.3
Target Price: PKR 256.5

Pak Oilfields (POL) – BUY
Current Price: PKR 348.7
Target Price: PKR 442.00

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 163.91
Target Price: PKR 221.00

Attock Petroleum (APL) – BUY
Current Price: PKR 541.18
Target Price: PKR 626.00

Nishat Mills (NML) - BUY
Current Price: PKR 114.1
Target Price: PKR 163.5

Allied Bank Limited (ABL) – BUY
Current Price: PKR 105.6
Target Price: PKR 140.0

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 26.8
Target Price: PKR 39.00

Habib Bank Limited (HBL) – BUY
Current Price: PKR 184.4
Target Price: PKR 255.0

United Bank Ltd (UBL) – BUY
Current Price: PKR 160.7
Target Price: PKR 194.00

National Bank (NBP) – BUY
Current Price: PKR 58.58
Target Price: PKR 72.00

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 45.04
Target Price: PKR 68.00

Pak Suzuki (PSMC) – BUY
Current Price: PKR 394.35
Target Price: PKR 495.00

Following are few SELL recommendations:

Hub Power Co (HUBCO) – SELL
Current Price: PKR 91.25
Target Price: PKR 71.00

Nishat Power Ltd (NPL) – SELL
Current Price: PKR 55.20
Target Price: PKR 38.00

Nishat Chun Power (NCPL) – SELL
Current Price: PKR 57.32
Target Price: PKR 43

Pakgen Power Ltd (PKGP) – SELL
Current Price: PKR 30.35
Target Price: PKR 24

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

1 comment:

  1. Mujy 2005 sy 2014 tk MCB ki share prices kiu up down hoi chahye thi .
    Uni mai meri presentation or assignment h Monday ko .....