Karachi Stock Exchange Weekly Analysis 1 May, 2015

The Karachi Stock Exchange (KSE) market was volatile during the week with half of the trading sessions closing in the red, due to worsening local sentiment. KSE-100 index closed on 33,730 by losing 45 points or -0.13%. While KSE-30 index closed on 21,674 by losing 32 points or -0.15%.

During the week, average daily volumes declined by 23% WoW to 253mn shares, while average daily value fell by 25% WoW to Rs12.6bn (US$123.5mn).

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

  • Positive result surprises include HBL, MCB, due to exceptional NII growth and INDU led by surging margins
  • Amongst top tier banks MCB posted the best results however the stock succumbed to selling pressure
  • Although result expectations were largely positive, there were some big disappointments, notably NBP and PSO
  • ENGRO fell short of expectations while EFERT gathered fresh interest on account of its SPO of 93mn shares through a private placement
  • Engro Corporation (ENGRO) and Engro Fertilizer (EFERT) both remained in limelight during the week, with average daily volume of 7.4mn shares (avg. traded value Rs2.3bn) and 5.3mn shares (avg. traded value Rs458mn), respectively, since private placement of Engro Fertilizer (EFERT) took place on Apr 29-30, 2015
  • The government has increased the minimum pension paid by the EOBI by 46% from PKR3,600 to PKR5,250/month. The increase will be effective from April 1
  • Yamaha invests PKR5.3bn in new plant, eyes 400,000 units by 2020
  • Bank Islami to take over KASB Bank on token value
  • T‐bill auction: Cut‐off yields fall by 54‐56bp
  • Amongst key sectors, major buying was seen in tobacco, life Insurance, automobile, beverages and chemical sectors which went up by 2-8% WoW
  • During the outgoing week, foreigners bought shares valuing US$85.1mn and sold shares worth US$63.5mn with net buying of US$21.6mn
  • Pakistan Petroleum (PPL) has announced a hydrocarbon discovery in Tal Block, located in district Kohat (KPK). The well (Mardankhel-1) produced 2,282bpd of crude oil & 27.04mmcfd gas, with an estimated annualized EPS impact of Rs0.6 (PPL stake 27.8%)

Top gainers of last week were: EFU Life Assur Ltd., Indus Motor, Pak Tobacco Co., Arif Habib Corp, Muree Brewery Co Ltd, Thal Limited, Engro Corp, Pak Suzuki Motor, Service Indus and Jubilee Gen Ins.

Top losers of last week were: Archroma Pakistan, TRG Pakistan Ltd, Atlas Honda Limited, Indus Dyeing, Gul Ahmed, National Foods, National Bank of Pakistan, Soneri Bank, Ghani Gases Ltd and GlaxoSmithKline Pakistan.

Top ten volume leaders: BOP, FABL, FCCL, JSCL, PAEL, ENGRO, KEL, TRG, DGKC, EFERT, and HBL.

Following are few BUY recommendations:

Fauji Fert. Bin Qasim Ltd. (FFBL) – BUY
Current Price: PKR 48.5
Target Price: PKR 62.4  

Fatima Fertilizer (FATIMA) – BUY
Current Price: PKR 37.9
Target Price: PKR 50.3 

Engro Fertilizers Limited (EFERT) – BUY
Current Price: PKR 87.03
Target Price: PKR 103.2 

ENGRO (ENGRO) – BUY
Current Price: PKR 317
Target Price: PKR 400 

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 182.84
Target Price: PKR 256.5 

Pak Oilfields (POL) – BUY
Current Price: PKR 368.93
Target Price: PKR 442.00

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 180.11
Target Price: PKR 221.00

Allied Bank Limited (ABL) – BUY
Current Price: PKR 113.85
Target Price: PKR 140.0 

Habib Bank Limited (HBL) – BUY
Current Price: PKR 200.60
Target Price: PKR 255.0  

MCB Bank Ltd (MCB) – BUY
Current Price: PKR 276.28
Target Price: PKR 320.00

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 29.77
Target Price: PKR 39.00

United Bank Ltd (UBL) – BUY
Current Price: PKR 177.68
Target Price: PKR 194.00

National Bank (NBP) – BUY
Current Price: PKR 57.03
Target Price: PKR 72.00

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 46.75
Target Price: PKR 68.00

DG Khan Cement (DGKC) – BUY
Current Price: PKR 137.36
Target Price: PKR 162

Cherat Cement (CHCC) - BUY
Current Price: PKR 74.62
Target Price: PKR 95.00 

Lucky Cement (LUCK) – BUY
Current Price: PKR 487
Target Price: PKR 552.00

Pak Suzuki (PSMC) – BUY
Current Price: PKR 428.55
Target Price: PKR 495.00

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

Nishat Mills (NML) – BUY
Current Price: PKR 112.3
Target Price: PKR 168.5 

Following are few SELL recommendations:

Hub Power Co (HUBCO) – SELL
Current Price: PKR 97.37
Target Price: PKR 71.00

Nishat Power Ltd (NPL) – SELL
Current Price: PKR 58.87  
Target Price: PKR 38.00

Nishat Chun Power (NCPL) – SELL
Current Price: PKR 66.03
Target Price: PKR 43 

Pakgen Power Ltd (PKGP) – SELL
Current Price: PKR 30.64
Target Price: PKR 24

Honda Atlas Cars (HCAR) – SELL
Current Price: PKR 241.19
Target Price: PKR 204.00

Indus Motor (INDU) – SELL
Current Price: PKR 1214.65
Target Price: PKR 1023.00

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

3 comments:

  1. Pibt what is a good rate to sell.

    ReplyDelete
  2. I would like to know. Is PIBT good share to buy and at what rate. Also what should be the target price to sell.

    ReplyDelete
  3. I want to sale 500 physical shares. Without submiting them in ny cdc account. Please guide me to get good price

    ReplyDelete