Karachi Stock Exchange Weekly Analysis 17 May, 2015

The Karachi Stock Exchange (KSE) market remained in doldrums throughout the week as the market lost 1,236pts at the very first trading day. KSE-100 index closed on 33,039 by losing 491 points or -1.46%.

During the week, average daily volumes increased by 2% WoW to 191mn shares, while the average daily value declined by 9.5% WoW to Rs9.8bn (US$95.8mn). During the outgoing week, local mutual funds were major net sellers of US$29.5mn. While foreigners & locals banks were major net buyers of US$6.1mn and US$15.8mn respectively.

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

  • The week was initiate with news regarding SECP and NAB jointly come together against insider trading within major financial entities
  • Uncertainty on political front owing to polling recount in selective constituencies and the unfortunate shooting incident that claimed several lives
  • Spike in Crude oil prices, regain investor’s confidence in Oil sector coupled with much awaited MSCI review also provide respite to some small cap
  • No major changes for Pakistan in the MSCI index review, Karachi bus attack incident on May 13, 2015 and aggressive selling by local funds dampened market sentiments
  • Cement stocks declined 4% WoW after news on Friday that South African customs union has imposed anti-dumping duty on cement exports from Pakistan. Bestway Cement (BWCL) fell 9% followed by Attock Cement (APCL) 8%, Dewan Cement (DCL) 5%, Fecto Cement (FECTC) 4%, Lucky Cement (LUCK) 4% and DG Khan Cement (DGKC) 4%
  • Automobile stocks fell 3% WoW mainly due to Honda Car (HCAR) which fell by 12% WoW after its full year results announcement. Indus Motors (INDU) also fell by 2.1% while Pak Suzuki Motor (PSMC) fell by 1.3%
  • BYCO emerged as the volume leader (105mn shares) on expectations of major turnaround in profitability of the company. While retail favourites, PAEL (82mn) and KEL (57mn) dominated the volume charts during the week. Average trading volume remained lack luster at 123mn, down 3% WoW
  • Foreigners remained net buyers this week, taking fresh net positions worth USD6.1mn
  • Notable stocks churning the numbers included retail darlings like KEL, JSCL and TRG, while FCCL surrendered to selling pressure shoring a hefty volume in the week
  • MARI, HCAR, NCL and ACPL topped the losers chart in the week while BOP was the only notable name that made it to the top gainers list
  • SNGPL has entered into loan agreement worth PKR17.70bn with a consortium of banks led by BlFL
  • The prime minister approved the appointment of CEO of the EETL as managing director of PSO
  • The government will raise gas prices from July 1, 2015, a senior Petroleum Ministry

Top gainers of last week were: Indus Dyeing, Shezan International Ltd, Pak Tobacco Co., Shifa International Hospitals, B.O.Punjab, J.D.W.Sugar, Bata (Pak) Ltd., EFU Life Assur Ltd., GlaxoSmithKline Pakistan and Muree Brewery Co Ltd.

Top losers of last week were: Mari Petroleum, Honda Atlas Cars, Nishat Chunian, Attock Cement Ltd, Meezan Bank, Feroz 1888 Mills Ltd, Colgate Palmolive, Lucky Cement, Pak Petroleum and United Bank

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

Following are few BUY recommendations:

Engro Fertilizers Limited (EFERT) – BUY
Current Price: PKR 85.0
Target Price: PKR 103.2

Engro Corp Limited (ENGRO) – BUY
Current Price: PKR 285
Target Price: PKR 338

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 187
Target Price: PKR 256.5 

Pak Oilfields (POL) – BUY
Current Price: PKR 384
Target Price: PKR 442.00

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 172
Target Price: PKR 221.00

Attock Petroleum (APL) – BUY
Current Price: PKR 529
Target Price: PKR 626

Allied Bank Limited (ABL) – BUY
Current Price: PKR 108
Target Price: PKR 140.0 

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 28
Target Price: PKR 39.00

Habib Bank Limited (HBL) – BUY
Current Price: PKR 197
Target Price: PKR 255.0  

National Bank (NBP) – BUY
Current Price: PKR 57
Target Price: PKR 72.00

United Bank Ltd (UBL) – BUY
Current Price: PKR 167
Target Price: PKR 194.00

MCB Bank Ltd (MCB) – BUY
Current Price: PKR 266
Target Price: PKR 320.00

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 45
Target Price: PKR 68.00

Lucky Cement (LUCK) – BUY
Current Price: PKR 455
Target Price: PKR 552.00

DG Khan Cement (DGKC) – BUY
Current Price: PKR 125
Target Price: PKR 162

Cherat Cement (CHCC) - BUY
Current Price: PKR 72
Target Price: PKR 95.00 

Pak Suzuki (PSMC) – BUY
Current Price: PKR 418
Target Price: PKR 495.00

Fauji Fert. Bin Qasim Ltd. (FFBL) – BUY
Current Price: PKR 48
Target Price: PKR 62.4  

Fatima Fertilizer (FATIMA) – BUY
Current Price: PKR 38
Target Price: PKR 50.3 

Engro Foods Limited (EFOODS) – BUY
Current Price: PKR 141
Target Price: PKR 181.1 

K‐Electric Co. (KEL) – BUY 
Current Price: PKR 7.5
Target Price: PKR 13.3

Nishat Mills (NML) – BUY
Current Price: PKR 107.6
Target Price: PKR 168.5 

Nishat Chunian Ltd. (NCL) – BUY 
Current Price: PKR 34.4
Target Price: PKR 45.7 

Following are few SELL recommendations:

Hub Power Co (HUBCO) – SELL
Current Price: PKR 95
Target Price: PKR 71.00

Nishat Power Ltd (NPL) – SELL
Current Price: PKR 57.46   
Target Price: PKR 38.00

Nishat Chun Power (NCPL) – SELL
Current Price: PKR 56
Target Price: PKR 43 

Pakgen Power Ltd (PKGP) – SELL
Current Price: PKR 30
Target Price: PKR 24

Honda Atlas Cars (HCAR) – SELL
Current Price: PKR 227
Target Price: PKR 204.00

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

1 comment:

  1. Rana Khuram Shahzad Bhai, please advice about Ghandhara Nissan?

    Zeeshan Ahmed