Karachi Stock Exchange Weekly Analysis 15 June, 2015

The Karachi Stock Exchange (KSE) market continued its pre‐budget rally posting gains of 1.9%WoW closing at 34,651pts. KSE-100 index closed on 34,651 by gaining 639 points or 1.88% while KSE-30 index closed on 21,879 by gaining 316 points or 1.47%.

Volumes remained buoyant with average daily turnover noted at 313.5mn shares traded, at a stable ‐0.7%WoW. Foreign inflows for the week clocked in at US$13.8mn vs. US$23.5mn for the week before.

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

  • MSCI deciding to include Pakistan in the review list for upgrading Pakistan to MSCI EM status from MSCI FM
  • Moody's upgrading Pakistan's sovereign bond credit rating to B3 and negativity mainly emanating from taxation measures in the Budget FY16
  • Pakistan receiving 11MFY15 remittances of US$16.6bn strengthening 16%YoY
  • FOREX reserves for the week ended 5 Jun'15, came in at US$17.44bn rising 2.4%WoW
  • successful book‐building for Dolmen REIT (oversubscribed 1.57x) and Al‐Shaheer (oversubscribed 2.9x) during the week
  • With Ramzan forthcoming accompanied by shorter trading days and relatively low volumes during the holy month, we expect resilient price performance from stocks with June year‐end
  • Major gains were seen in Chemical (7.2%), Media (6.5%), Engineering (5.5%) and Cement (5.2%), while major fall was seen in Banks (4.5%) during the outgoing week
  • Local mutual funds and foreigners were major net buyers of US$9.3mn and US$13.8mn during the week, while local banks were major net sellers of US$31.5mn
  • Major net buying, during the week, by foreigners was seen in sectors like Food Producers (US$14.1mn) and Chemical (US$7.5mn). However, major selling by foreigners was seen in Technology & Communication (US$8.5mn) and Cement (US$3.2mn)
  • Govt. is planning to sell a Global Bond worth US$1.0 bn after witnessing strong investor confidence, in a bid to further boost the country’s foreign reserves

Top gainers of last week were: FFBL (+27.4%WoW), EPCL (+12.2%WoW), FFC (+11.4%WoW) and LOTCHEM (+10.3%WoW)

Top losers of last week were: MCB (‐9.6%WoW), HMB (‐8.4%WoW), AKBL (‐5.9%WoW) and BAFL (‐5.7%WoW)

Following are few BUY recommendations:

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 195
Target Price: PKR 238.2

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 204
Target Price: PKR 270

MCB Bank Ltd (MCB) – BUY 
Current Price: PKR 247
Target Price: PKR 320

United Bank Ltd (UBL) – BUY 
Current Price: PKR 163
Target Price: PKR 194.00

National Bank (NBP) – BUY 
Current Price: PKR 54.0
Target Price: PKR 69.0

Bank Al‐Habib (BAHL) – BUY 
Current Price: PKR 40
Target Price: PKR 68

Bank Al‐Falah (BAFL) – BUY 
Current Price: PKR 25
Target Price: PKR 34

Engro Foods Limited (EFOODS) – BUY
Current Price: PKR 152
Target Price: PKR 177.8

DG Khan Cement (DGKC) – BUY 
Current Price: PKR 142
Target Price: PKR 162

Nishat Mills (NML) – BUY 
Current Price: PKR 121
Target Price: PKR 168.5

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 102
Target Price: PKR 140.0

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

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