Karachi Stock Exchange Weekly Analysis 26 April, 2015

The Karachi Stock Exchange (KSE) market was bullish triggered primarily by the China-Pakistan Economic Corridor and the strong corporate results. Bull-run in the market continued for the fourth consecutive week. KSE-100 index closed on 3 3,775 by gaining 540 points or 1.63%. While KSE-30 index closed on 21,706 by gaining 542 points or 2.56%. 

The index closed at 33,775 points. ADTO and average daily value traded rose by an impressive 11%/18% WoW to 329mn shares and US$128mn, respectively. FIPI continued to clock in an inflow clocking in at US$7.7mn vs US$7.5mn, up 2.5% WoW.

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

  • The Federal Board of Revenue’s (FBR) tax collection rose 12.2% to PRs1,766.8bn during 9MFY15 compared to PRs1,574.7bn in the corresponding period last year
  • Aliuddin Ansari, President and Chief Executive Officer of Engro Corporation Limited, has announced to step down from his post effective May 11, 2015. The company is expected to announce Mr. Ansari’s successor in the near future
  • Latest FX reserves position stands at US$17.49bn (over 4‐month import cover) as of April 17th, a 3‐year high, depicting an increase of US$673mn during the week. The SBP reserves increased by US$605mn to US$12.364bn (June‐15 target is US$15.4bn). The increase in reserves is mainly attributed to privatization proceeds of Habib Bank Ltd
  • Cement sector posted strong earnings during 3QFY15 with 2‐5pp growth in gross margins
  • LUCK (+2.5% WoW) witnessed a much‐awaited rally with results above consensus expectations
  • EFERT results announced this week commenced what we believe an impressive earnings season for fertilizer sector Banking results impressed across the board driven by solid interest income on the back of shift in investment mix and relief on cost of funds side
  • With oil prices seemingly recovering from a steep fall over the past few months, E&Ps are expected to keep attracting investors
  • Positive result surprises from the likes of EFOODS, EFERT, LUCK, UBL and DGKC
  • PIB yields for 3yr paper coming off by 44bps, with 5yr and 10yr yields declining by 32bps and 16bps
  • FX reserves rising to US$17.5bn vs.US$16.8bn last week mainly on account of privatization receipts
  • Cotton output up 11% to 14.8m bales
  • Textile exports decline 16pc in March

Top gainers of last week were: Bank Al‐Falah, B.O.Punjab, United Bank, Searle Pak, Soneri Bank, EFU Life Assur Ltd., Engro Foods Ltd, IGI Insurance, Habib Bank Ltd and Askari Bank Ltd.

Top losers of last week were: Pak Tobacco Co., Muree Brewery Co Ltd, Nishat Chunian, Fatima Fert.Co., Service Indus, Colgate Palmolive, K‐Electric, Cherat Cement, Gul Ahmed and Bannu Woollen.

Top ten volume leaders: PAEL, BOP, FCCL, KEL, TRG, JSCL, DGKC, EFOODS, MLCF, AKBL, and HBL.

Following are few BUY recommendations:

Pak Suzuki (PSMC) – BUY
Current Price: PKR 407.1
Target Price: PKR 495.00

Engro Fertilizers Limited (EFERT) – BUY
Current Price: PKR 83.5
Target Price: PKR 103.2 

Fauji Fert. Bin Qasim Ltd. (FFBL) – BUY
Current Price: PKR 48.6
Target Price: PKR 62.4  

Fatima Fertilizer (FATIMA) – BUY
Current Price: PKR 38.0
Target Price: PKR 50.3 

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 183.9
Target Price: PKR 256.5 

Pak Oilfields (POL) – BUY
Current Price: PKR 374.7
Target Price: PKR 442.00

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 179
Target Price: PKR 221.00

Pakistan Telecommunication (PTC) – BUY
Current Price: PKR 20.8
Target Price: PKR 25.1

Nishat Mills (NML) – BUY
Current Price: PKR 111.6
Target Price: PKR 168.5 

Allied Bank Limited (ABL) – BUY
Current Price: PKR 115.9
Target Price: PKR 140.0 

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 30.4
Target Price: PKR 39.00

Habib Bank Limited (HBL) – BUY
Current Price: PKR 196.0
Target Price: PKR 255.0  

United Bank Ltd (UBL) – BUY
Current Price: PKR 182.74
Target Price: PKR 194.00

National Bank (NBP) – BUY
Current Price: PKR 60.38
Target Price: PKR 72.00

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 48.03
Target Price: PKR 68.00

DG Khan Cement (DGKC) – BUY
Current Price: PKR 134.39
Target Price: PKR 162

Lucky Cement (LUCK) – BUY
Current Price: PKR 488.49 
Target Price: PKR 552.00

Cherat Cement (CHCC) - BUY
Current Price: PKR 74.96
Target Price: PKR 95.00 

Following are few SELL recommendations:

Hub Power Co (HUBCO) – SELL
Current Price: PKR 96.39
Target Price: PKR 71.00

Nishat Power Ltd (NPL) – SELL
Current Price: PKR 58.13 
Target Price: PKR 38.00

Nishat Chun Power (NCPL) – SELL
Current Price: PKR 63.9 
Target Price: PKR 43 

Pakgen Power Ltd (PKGP) – SELL
Current Price: PKR 30.2
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. DEAR MR. RANA KHURAM SHAHZAD
    ASSALAM ALE KUM
    I AM NEW IN STOCK TRADING
    PLEASE SUGGEST ME WHAT TO DO WHERE TO INVEST
    I WILL MAKE MY MIND ON YOUR BUY RECOMMENDATIONS
    ENGRO FERT. / FAUJI FER. / FATIMA FERT. / BANK AL FALAH AND OTHERS PLEASE GIVE ME YOUR CONTACTS SO I WILL CONTACT YOU
    THANK YOU
    BEST REGARDS

    ReplyDelete