Karachi Stock Exchange Weekly Analysis 24 May, 2015

The Karachi Stock Exchange (KSE) market remained sluggish during the week as the market lost 433.58pts to close at 32,606 pts. KSE-100 index closed on 32,606 by losing -433 points or -1.31% while KSE-30 index closed on 20,770 by losing -276 points or -1.31%.

Average traded volume decline to 109mn shares as compared to 191mn in the past week. Similarly, average traded value decline to US$51mn (down 46.59% WoW). During the week, mutual funds were again the net seller with net outflow of US$24.9mn against an outflow of US$29.5mn in the last week.

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

  • State Bank of Pakistan (SBP) has announced Monetary Policy for next two months. In which State Bank cuts interest rates to historic low (42-year low) of 7%
  • Rumors related to changes in capital gain tax regime and imposition of tax on inward remittances is considered as a major threat
  • LSM growth down by 2.3% in 1HFY15
  • South Africa has imposed provisional anti‐dumping duties of 14.29% to 77.15% on Portland cement, originating in or imported from Pakistan from May 15 for a period of 6‐months. Lucky Cement is subjected to pay 14.29% duty, followed by Bestway 77.15%, DG Khan 68.87%, Attock Pakistan 63.53%, and other cement makers 62.69% 
  • NBP and HBL offered the Punjab government to underwrite project financing, amounting to PKR84bn for its 1,200MW LNG‐based power plant at Bhikki in Sheikhupura
  • ADB projects Pakistan to achieve 4.2% GDP growth in 2015
  • NIT receives PKR3.9bn in Islamic Equity Fund IPO
  • Equity‐oriented schemes are eligible to invest in REITs: SECP
  • In a fresh twist to the LNG saga, the SNGPL has refused to provide gas to UGDC, an umbrella company of CNG stations, and has asked individual gas stations to import the commodity through PSO
  • Car imports surge 35% to USD218.4mn
  • PPL announced discovery of tight gas from exploratory well Rizq‐I in Kirthar Block. The well delivered up to 10.7mmcfd gas
  • Negativity was also brought about by persistent selling from mutual funds amid issuance of guidelines by SECP for CPPI-based mutual funds
  • Government curtails 3.6% budget deficit during Jul-Mar, while Current account deficit falls

Top gainers of last week were: Indus Dyeing, J.D.W.Sugar, Kohinoor Energy, Shezan International Ltd, EFU General Ins, National Refinery, Searle Pak, Abbott Lab, Packages Limited and Punjab Oil.

Top losers of last week were: Ibrahim Fibres, Jah.Sidd. Co., Shifa International Hospitals, Nishat Chunian, B.O.Punjab, Nishat Power Ltd, Honda Atlas Cars, Pakgen Power Ltd., Arif Habib Corp and EFU Life Assur Ltd.

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

Following are few BUY recommendations:

Pak Suzuki (PSMC) – BUY
Current Price: PKR 408.6
Target Price: PKR 495.00

Lucky Cement (LUCK) – BUY
Current Price: PKR 443.4
Target Price: PKR 552.00

DG Khan Cement (DGKC) – BUY
Current Price: PKR 123.6
Target Price: PKR 162

Cherat Cement (CHCC) - BUY
Current Price: PKR 71.89
Target Price: PKR 95.00 

Fauji Cement (FCCL) - BUY
Current Price: PKR 32.12
Target Price: PKR 37 

Engro Fertilizers Limited (EFERT) – BUY
Current Price: PKR 83.9
Target Price: PKR 103.2

Fauji Fert. Bin Qasim Ltd. (FFBL) – BUY
Current Price: PKR 47.9
Target Price: PKR 62.4

Fatima Fertilizer (FATIMA) – BUY
Current Price: PKR 35.8   
Target Price: PKR 50.7

Engro Corp Limited (ENGRO) – BUY
Current Price: PKR 274.87
Target Price: PKR 338

Engro Foods Limited (EFOODS) – BUY
Current Price: PKR 135.4
Target Price: PKR 177.8

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 185.8
Target Price: PKR 256.5 

Pak Oilfields (POL) – BUY
Current Price: PKR 376.3
Target Price: PKR 442.00

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 170.09
Target Price: PKR 221.00

Attock Petroleum (APL) – BUY
Current Price: PKR 520.00
Target Price: PKR 626

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

Pakistan Telecommunication (PTC) – BUY
Current Price: PKR 20.5
Target Price: PKR 25.1

Nishat Mills (NML) – BUY
Current Price: PKR 104.8
Target Price: PKR 168.5 

Nishat Chunian Ltd. (NCL) – BUY 
Current Price: PKR 32.1
Target Price: PKR 45.7 

Allied Bank Limited (ABL) – BUY
Current Price: PKR 104.4
Target Price: PKR 140.0 

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 27.1
Target Price: PKR 39.00

Habib Bank Limited (HBL) – BUY
Current Price: PKR 196.1
Target Price: PKR 255.0  

National Bank (NBP) – BUY
Current Price: PKR 56.9
Target Price: PKR 72.00

United Bank Ltd (UBL) – BUY
Current Price: PKR 165.7
Target Price: PKR 194.00

MCB Bank Ltd (MCB) – BUY
Current Price: PKR 267.73
Target Price: PKR 320.00

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 44.90
Target Price: PKR 68.00

Kot Addu Power Co (KAPCO) – BUY
Current Price: PKR 84.44
Target Price: PKR 97

Following are few SELL recommendations:

Hub Power Co (HUBCO) – SELL
Current Price: PKR 93.29
Target Price: PKR 71.00

Nishat Power Ltd (NPL) – SELL
Current Price: PKR 52.63    
Target Price: PKR 38.00

Nishat Chun Power (NCPL) – SELL
Current Price: PKR 59.88    
Target Price: PKR 43 

Pakgen Power Ltd (PKGP) – SELL
Current Price: PKR 28.65
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. I come across first time through this blog its really informative specially tips to buy and sell but I want to have your views regarding power cement its interim EPs is 0.92 its current price is same of K-electric but k-electric EPS is less than power cement and Byco its EPL is dropped compare to last year but its price is increasing.