Karachi Stock Exchange Weekly Analysis 7 Sep, 2015

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

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

Top gainers of last week were: Sui North Gas Pipe., Pak Int.Bulk Ter, Bannu Woollen, Oil and Gas Deve, Hum Network Ltd, Shell Pakistan, Service Indus, TRG Pakistan Ltd, Fatima Fert.Co. and Engro Fertilizer.
    
Top losers of last week were: Shezan International Ltd, Pak Tobacco Co., Jah.Sidd. Co., IGI Insurance, GlaxoSmithKline Pakistan, Maple Leaf Cem., Nestle Pakistan, B.O.Punjab, Ghani Glass Ltd and Punjab Oil.

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

The Karachi Stock Exchange (KSE) market showed persistently negative performance, amid continuation of political noise and global oil price volatility weighing on Oil & Gas sector performance. KSE-100 index closed on 33,891 by losing -556 points or -1.62%, while KSE-30 index closed on 20,628 by losing -348 points or - 1.66%.

The average traded value was pulled down by 11.19%WoW to average at US$122mn, whereas the average traded volume also reduced by 3.71%WoW to average at 289mn shares.

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

  • Gas tariff hike in the range of 10%‐63% for the industrial sector acted as a major dampener during the week particularly for the fertilizer sector, though some support came through subsequent urea price increase (+PkR159/bag)
  • Ministry of Power & Natural Resources reducing fuel prices by PkR3.0/ltr
  • CPI for Aug’15 reading at 1.72%YoY vs. 1.8%YoY in Jul’15
  • GoP borrowing PkR 187.9 billion through MTB auction where cut‐off yields remained unchanged
  • Expectations of GoP and K‐Electric to finalize a revised Power Purchase Agreement (PPA) and Gas Supply Agreement (GSA) during the second round of talks to be held on Sep 07’15
  • Gas distribution companies comes out as a winner where both gas utilities SSGC and SNGP remain upbeat during the week
  • Pakistan's first local coal‐fired project of 660MW to be established by SECMC has reportedly achieved financial close with the help of federal government
  • Gas prices revised upward, POL products' prices slashed
  • Amreli Steels Limited is all set to launch its IPO in mid‐September and hopes to raise PKR3.37bn for the expansion. 74 mn shares will be offered; 75% of which will be offered to institutions and high net‐worth individuals and the rest to general public 
  • PPL has made another hydrocarbon discovery at its exploration well Fazl X‐I located in Hala block.
  • KEL are expected to finalize a revised PPA and GSA during the second round of talks to be held on September 7, 2015

Following are few BUY recommendations:

Pak Suzuki Motors (PSMC) – BUY
Current Price: PKR 417.7
Target Price: PKR 542

Fauji Fertilizer Company (FFC) – BUY
Current Price: PKR 134.0
Target Price: PKR 163.5

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 142.5
Target Price: PKR 238.2

Pak Oilfields (POL) – BUY
Current Price: PKR 339.0
Target Price: PKR 442.00

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 132.8
Target Price: PKR 221.00

Pakistan State Oil (PSO) – BUY
Current Price: PKR 314.8
Target Price: PKR 493

K-Electric Co. (KEL) – BUY 
Current Price: PKR 7.6
Target Price: PKR 13.3

Nishat Mills (NML) – BUY
Current Price: PKR 104.4
Target Price: PKR 168.5 

Nishat Chunian Ltd. (NCL) – BUY
Current Price: PKR 37.5
Target Price: PKR 45.7 

Allied Bank Limited (ABL) – BUY
Current Price: PKR 100.2
Target Price: PKR 140.0 

National Bank (NBP) – BUY
Current Price: PKR 53.4
Target Price: PKR 69.0

United Bank Ltd (UBL) – BUY
Current Price: PKR 160.7
Target Price: PKR 194.00

Habib Bank Limited (HBL) – BUY
Current Price: PKR 213.2
Target Price: PKR 270

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 27.6
Target Price: PKR 34

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 43
Target Price: PKR 68

Engro Corporation (ENGRO) – BUY
Current Price: PKR 318.7
Target Price: PKR 403

Dera Ghazi Khan Cement (DGKC) – BUY
Current Price: PKR 136.4
Target Price: PKR 176

Lucky Cement (LUCK) – BUY
Current Price: PKR 518.2
Target Price: PKR 665

Kohat Cement (KOHC) – BUY
Current Price: PKR 216
Target Price: PKR 268

Cherat Cement (CHCC) – BUY
Current Price: PKR 88.60
Target Price: PKR 109

Following are few SELL recommendations:

Fauji Fert. Bin Qasim Ltd. (FFBL) – SELL
Current Price: PKR 62.20
Target Price: PKR 49.00

Pakgen Power Ltd (PKGP) – SELL
Current Price: PKR 28.69
Target Price: PKR 24.00

Hub Power Co (HUBCO) – SELL
Current Price: PKR 103.67
Target Price: PKR 71.00

Honda Atlas Cars (HCAR) – SELL
Current Price: PKR 238.32
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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