Karachi Stock Exchange Weekly Analysis 16 Aug, 2015

BUY recommendations are OGDC, POL, PPL, PSO, MARI, KEL, UBL, ABL, NBP, HBL, BAFL, BAHL, NML, NCL, ENGRO, KOHC, CHCC and FECTC.

SELL recommendations are FFBL, HUBCO, NPL, NCPL, PKGP, INDU and HCAR.

Top gainers of last week were: Glaxo Smith Kline Pakistan, TRG Pakistan Ltd, Sui North Gas Pipe., Shifa International Hospitals, ICI Pakistan, Searle Pak, Soneri Bank, Thal Limited, Rafhan Maize Prod. and Adamjee Ins.
    
Top losers of last week were: Attock Refinery Ltd., Punjab Oil, Arif Habib Corp, P.T.C.L.A, Kohinoor Textile, Lafarge Pakistan, Pakgen Power Ltd., Nishat Mills Limited, National Refinery and Kohat Cement.

Top ten volume leaders: KEL, SNGP, PAEL, TRG, JSCL, SSGC, AICL, PIBTL, BOP, FFBL, and EFERT.

The Karachi Stock Exchange (KSE) market undergoes mild correction amid rising political noise. KSE-100 index closed on 35,937 by losing -286 points or -0.79%, while KSE-30 index closed on 22,112 by losing -320 points or -1.43%.

The KSE-100 index closed the week 0.8% WoW lower with average daily volumes clocking in 13% WoW higher at 333mn shares/day while foreigners remained net buyers worth US$0.9mn.

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

  • MQM (Fourth largest political party) resigning from all three levels of the parliament
  • Pressure on global equities amid devaluation of the Chinese Yuan. Yuan devalued by 2%
  • Oil sector prolonged its bearish rally with international crude oil prices maintaining its downtrend and refineries announcing lower than expected financial results
  • Refineries posted strong margins but results were largely in line with consensus estimates
  • On the E&P front, POL announced earnings that were below expectations largely due to a bloated exploration cost element
  • Slowdown in auto sales (-11% MoM) in July 2015 led to pressure on auto stocks
  • US hinting at non-availability of Coalition Support Fund (CSF) beyond 2015
  • Government seeking two waivers from IMF under its eight review
  • Power sector receivables increasing by 23.5%
  • Remittances rising by 0.8% YoY to US$1.66bn in July 2015
  • Senate body approving ordinance to lower WHT on banking transactions to 0.3% for non-filers till Sep 30, 2015
  • Finance Minister deferring approval of new auto policy
  • Government to continue providing 650MW to K-Electric until renegotiations
  • Pharma sector continued its ascent and increased further by 33 points during the week
  • Foreigner remained net buyers during the week, buying USD0.9mn worth of shares
  • PIB yields declined by up to 49bps in latest auction with 3yr, 5yr and 10yr cut‐off yields at 7.60%, 8.51% and 9.40% respectively
  • National Power Construction Company’s (NPCC) strategic sale fetching PkR2.5bn for GoP’s 88% stake
  • FBR targets 1.05mn income tax returns in 2015
  • Mangla refurbishment project to add 310MW to national grid

Following are few BUY recommendations:

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 156.98
Target Price: PKR 238.2 

Pak Oilfields (POL) – BUY
Current Price: PKR 360.19
Target Price: PKR 442.00

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 152.29
Target Price: PKR 221.00

Pakistan State Oil (PSO) – BUY
Current Price: PKR 370.8
Target Price: PKR 493

MARI Petroleum (MARI) – BUY
Current Price: PKR 434.3
Target Price: PKR 625

K-Electric Co. (KEL) – BUY 
Current Price: PKR 8.4
Target Price: PKR 13.3

United Bank Ltd (UBL) – BUY
Current Price: PKR 179.91
Target Price: PKR 194.00

Allied Bank Limited (ABL) – BUY
Current Price: PKR 105.51
Target Price: PKR 140.0 

National Bank (NBP) – BUY
Current Price: PKR 57.22
Target Price: PKR 69.0

Habib Bank Limited (HBL) – BUY
Current Price: PKR 222.56
Target Price: PKR 270

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 27.61
Target Price: PKR 34

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 44.71
Target Price: PKR 68

Nishat Mills (NML) – BUY
Current Price: PKR 116.12
Target Price: PKR 168.5 

Nishat Chunian Ltd. (NCL) – BUY
Current Price: PKR 41.31
Target Price: PKR 45.7 

Engro Corporation (ENGRO) – BUY
Current Price: PKR 340.19
Target Price: PKR 403

Kohat Cement (KOHC) – BUY
Current Price: PKR 230
Target Price: PKR 268

Cherat Cement (CHCC) – BUY
Current Price: PKR 90.9
Target Price: PKR 109

Fecto Cement (FECTC) – BUY
Current Price: PKR 72.1
Target Price: PKR 89

Following are few SELL recommendations:

Fauji Fert. Bin Qasim Ltd. (FFBL) – SELL
Current Price: PKR 62.44
Target Price: PKR 49.00

Hub Power Co (HUBCO) – SELL
Current Price: PKR 97.54
Target Price: PKR 71.00

Nishat Power Ltd (NPL) – SELL
Current Price: PKR 59.74
Target Price: PKR 38.00

Nishat Chun Power (NCPL) – SELL
Current Price: PKR 59.70
Target Price: PKR 43 

Pakgen Power Ltd (PKGP) – SELL
Current Price: PKR 30.92
Target Price: PKR 24

Indus Motor (INDU) – SELL
Current Price: PKR 1280.00
Target Price: PKR 1023.00

Honda Atlas Cars (HCAR) – SELL
Current Price: PKR 263.49
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

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