Karachi Stock Exchange Weekly Analysis 23 Aug, 2015

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

SELL recommendations are FFBL, HUBCO, HCAR and INDU.

Top gainers of last week were: EFU Life Assur Ltd., Jubilee Gen Ins, International Steels Ltd, Indus Dyeing, Hub Power, IGI Insurance, Kot Addu Power, Bata (Pak) Ltd., EFU General Ins and Dawood Hercules Chem.
    
Top losers of last week were: Sui South Gas, Pakcem Limited, Jah.Sidd. Co., TRG Pakistan Ltd, National Refinery, Pak Suzuki Motor, Oil and Gas Deve, Arif Habib Corp, Sui North Gas Pipe. and Attock Refinery Ltd.

Top ten volume leaders: KEL, TRG, JSCL, FFBL, PAEL, SSGC, BOP, FCCL, AKBL, and ISL.

The Karachi Stock Exchange (KSE) market prolonged its bearish rally as the benchmark KSE-100 index dropped by 3.9% WoW to close at 34,520 with average trading volumes dropping by 14% WoW to 286mn shares/day. KSE-100 index closed on 34,520 by losing -1417 points or -3.9%, while KSE-30 index closed on 21,108 by losing -1004 points or - 4.54%.

The average traded value was pulled down by 9.6%WoW to average at US$108mn, whereas the average traded volume also plummeted by 23.89%WoW to average at 254mn shares.

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

  • Pressure on global equities and currencies amid devaluation of the Chinese Yuan
  • International crude oil prices hitting a six-year low
  • Oil stocks continued to tumble amid declining international oil prices, while cherry picking in insurance stocks kept the sector in green
  • Better-than-expected result and dividend announcements for the quarter ended June 2015 by blue chip companies failed to revive market sentiments
  • Foreigners returned net sellers worth US$43mn during the week
  • FDI rising by 308% YoY in July 2015 to US$75mn
  • Sindh Engro Coal Mining Company inking deal to make US$500mn financing available
  • Banking deposits dropping by 5.25% MoM in July 2015
  • PPL announces small-size discovery at Gambat South
  • The upcoming week may see persistent pressure as index heavy E&P OGDC and PPL are expected to announce their results
  • TCP buys 50,000 tons of urea from China
  • KSE approves formal listing of Al‐Shaheer Corporation with trading to start from August 24, 2015
  • The government has decided to increase gas tariff by five to six per cent with effect from Sept 1
  • Cut in oil prices by up to Rs 7.5 per litre expected
  • Oil & Gas fell 8.1%, Cement 4.2% while banks eroded 3.8% of its last week’s value
  • Agreement between Pakistan and Thailand to start negotiations on Free Trade Agreement

Following are few BUY recommendations:

Pak Suzuki Motors (PSMC) – BUY
Current Price: PKR 430.7
Target Price: PKR 542

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 142.3
Target Price: PKR 238.2 

Pak Oilfields (POL) – BUY
Current Price: PKR 337.7
Target Price: PKR 442.00

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 141.12
Target Price: PKR 221.00

Pakistan State Oil (PSO) – BUY
Current Price: PKR 347
Target Price: PKR 493

K-Electric Co. (KEL) – BUY 
Current Price: PKR 7.9
Target Price: PKR 13.3

Nishat Mills (NML) – BUY
Current Price: PKR 110.0
Target Price: PKR 168.5 

Nishat Chunian Ltd. (NCL) – BUY
Current Price: PKR 39.3
Target Price: PKR 45.7 

Allied Bank Limited (ABL) – BUY
Current Price: PKR 99.8
Target Price: PKR 140.0 

National Bank (NBP) – BUY
Current Price: PKR 55.1
Target Price: PKR 69.0

United Bank Ltd (UBL) – BUY
Current Price: PKR 171
Target Price: PKR 194.00

Habib Bank Limited (HBL) – BUY
Current Price: PKR 212
Target Price: PKR 270

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 27
Target Price: PKR 34

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 44
Target Price: PKR 68

Engro Corporation (ENGRO) – BUY
Current Price: PKR 326
Target Price: PKR 403

Kohat Cement (KOHC) – BUY
Current Price: PKR 217
Target Price: PKR 268

Cherat Cement (CHCC) – BUY
Current Price: PKR 87.08
Target Price: PKR 109

Following are few SELL recommendations:

Fauji Fert. Bin Qasim Ltd. (FFBL) – SELL
Current Price: PKR 61.62
Target Price: PKR 49.00

Hub Power Co (HUBCO) – SELL
Current Price: PKR 101.87
Target Price: PKR 71.00

Honda Atlas Cars (HCAR) – SELL
Current Price: PKR 242.31
Target Price: PKR 204.00

Indus Motor (INDU) – SELL
Current Price: PKR 1255.06
Target Price: PKR 1023.00

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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