Karachi Stock Exchange Weekly Analysis 22 July, 2015

The Karachi Stock Exchange (KSE) market continued to rally higher, where the KSE‐100 index reached record‐high levels to close the week at 35,888pts. KSE-100 index closed on 3 5,888  by gaining 776 points or 2.21% while KSE-30 index closed on 22,350  by gaining 391 points or 1.78%.

Contrary to common perception, Pakistan market gained 4% in the Muslim religious month of Ramzan. Despite shorter trading sessions during Ramzan, avg. daily volume increased 45% from previous month to 383mn shares, while trading value was 17% better in Pakistan Rupee terms. With the earnings season set to start next week, we expect the market to continue its strong performance post Eid holidays. Furthermore, SBP is expected to announce its monetary policy review for Jul’15 next week, where we anticipate it to maintain status quo.

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

  • Iran and six major powers reached a nuclear deal agreeing to lift sanctions on the country, triggering expectations of increase in global oil supply which remained a dampener for the Oil & Gas sector’s performance
  • Remittances for FY15 touched their historic peak at US$18.4bn (up 16.5%YoY)
  • FDI during FY15 saw a decline of 58% to come in at US$709mn
  • GoP raised PkR51.69bn in the July’15 PIB auction
  • Expectations for ECC to increase gas prices by 15‐20% after Eid‐ul‐Fitr
  • Transparency International Pakistan raising allegations against K‐Electric (KEL) of tax evasion of PkR 111 billion
  • EFERT and FATIMA being largely immune from gas price increase gathered steady momentum taking strides onto an all-time high price level
  • SBP injected over PKR 1tn into the banking system, a move bankers aimed at covering the widening liquidity gap
  • DGKC to buy PKR6.5bn equipment from Danish firm
  • NEPRA has accorded approval to a fact‐finding report on K‐Electric system faults in which massive irregularities have been reported. A 120‐page fact‐finding report reveals that the power utility has failed to bring required improvement to the transmission and distribution systems as additional load‐shedding in Karachi has exposed its tall claims 

Top gainers of last week were: TRG Pakistan Ltd, Bannu Woollen, Soneri Bank, Sui North Gas Pipe., Atlas Battery, Fauji Fert BinXD, Sui South Gas, Ghani Gases Ltd, Jubilee Life Ins and Habib Bank Ltd.
Top losers of last week were: Oil and Gas Deve, Pak Oilfields, Bata (Pak) Ltd., Pak Petroleum, Pak Tobacco Co., Punjab Oil, National Refinery, Kohinoor Textile, Bank AL‐Habib and Kohinoor Energy.

Top ten volume leaders: KEL, PIBTL, JSCL, FFBL, PTC, BOP, SNGP, FCCL, SCBPL, ENGRO and PAEL.

Following are few BUY recommendations:

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 445.7
Target Price: PKR 552.00

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 43.0
Target Price: PKR 50.7

Engro Fertilizers Limited (EFERT) – BUY
Current Price: PKR 95
Target Price: PKR 103.2

Engro Corporation (ENGRO) – BUY
Current Price: PKR 325
Target Price: PKR 338

Engro Foords (EFOODS) – BUY
Current Price: PKR 166
Target Price: PKR 177.8

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 165.9
Target Price: PKR 238.2

Pak Oilfields (POL) – BUY 
Current Price: PKR 356.2
Target Price: PKR 442.00

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 155.13
Target Price: PKR 221.00

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 382
Target Price: PKR 493

Lucky Cement (LUCK) – BUY 
Current Price: PKR 577
Target Price: PKR 652.00

K-Electric Co. (KEL) – BUY
Current Price: PKR 8.3
Target Price: PKR 13.3

Nishat Mills (NML) – BUY 
Current Price: PKR 121.2
Target Price: PKR 168.5

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 101.0
Target Price: PKR 140.0

National Bank (NBP) – BUY 
Current Price: PKR 54.3
Target Price: PKR 69.0

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 232.24
Target Price: PKR 270

United Bank Ltd (UBL) – BUY 
Current Price: PKR 179.02
Target Price: PKR 194.00

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 27.35
Target Price: PKR 34

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 44.00
Target Price: PKR 68

Following are few SELL recommendations:

Fauji Fert. Bin Qasim Ltd. (FFBL) – SELL
Current Price: PKR 64.27
Target Price: PKR 49.00

Hub Power Co (HUBCO) – SELL
Current Price: PKR 100.15
Target Price: PKR 71.00

Nishat Power Ltd (NPL) – SELL
Current Price: PKR 59.67
Target Price: PKR 38.00

Nishat Chun Power (NCPL) – SELL
Current Price: PKR 59.67
Target Price: PKR 43

Pakgen Power Ltd (PKGP) – SELL 
Current Price: PKR 31.16
Target Price: PKR 24

Indus Motor (INDU) – SELL 
Current Price: PKR 1263.47
Target Price: PKR 1023.00

Honda Atlas Cars (HCAR) – SELL 
Current Price: PKR 241.58
Target Price: PKR 204

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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