Karachi Stock Exchange Weekly Analysis 13 Sep, 2015

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

SELL recommendations are FFBL, and PKGP.

Top gainers of last week were: Jubilee Gen Ins, Kohinoor Textile, Atlas Battery, Kohinoor Energy, Soneri Bank, MCB Bank Ltd, Meezan Bank, GlaxoSmithKline Pakistan, Hub Power and Habib Bank Ltd.
    
Top losers of last week were: Pak Int.Bulk Ter, Dawood Hercules Chem, Jah.Sidd. Co., TRG Pakistan Ltd, Pak Elektron, Sui North Gas Pipe., Sui South Gas, Pak Oilfields, Habib Metro Bank and Shell Pakistan.

Top ten volume leaders: PAEL, TRG, KEL, MLCF, JSCL, SNGP, FCCL, DGKC, BOP and PIBTL.

The Karachi Stock Exchange (KSE) market performance remained weak during the week because of taking cue from regional volatility amid concerns over enforcement of stricter regulations. KSE-100 index closed on 33,673 by losing -218 points or -0.64%, while KSE-30 index closed on 20,491 by losing -137 points or - 0.66%.

Average daily volumes declined by 29% WoW to 206mn shares, whereas traded value declined by 26% to (Rs9.2bn/US$87.9mn).

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

  • Pakistan cuts interest rate to 6% (42 years low) to bolster economic growth
  • Foreign flows also took a hit for the week with a net sell of US$7.6mn compared to an inflow of US$12.5mn last week
  • Cut‐off yield in the latest auction of PIBs fell up to 25bps where 3yr, 5yr and 10yr yields came in at 7.353% (‐25bps), 8.338% (‐18bps) and 9.340%(‐6bps) where GoP raised PkR87.8bn against the target of PkR50bn
  • Remittances for Aug’15 clocked in at US$1.52bn (up 13%YoY) to take 2MFY16 remittances to US$3.19bn, reflecting an increase of 5.4%YoY
  • The Chief of Elengy Terminal Pakistan Limited, a wholly owned subsidiary of ENGRO, has admitted that the NAB is investigating the process for awarding of its LNG terminal contract
  • As part of ongoing diversification, ENGRO has appointed financial advisors to provide strategic options for its 56.2% owned Chemicals business, EPCL. Within the broader market
  • Result season comes to an end leaving little room for positive triggers
  • Fertilisers, power bills of agriculture tube wells: provinces urge Centre to cut GST by 10%
  • NAB has reportedly quizzed Minister for Water and Power, Khawaja Asif on the 425‐525MW Nandipur Power Project in the presence of a Ministry's official. They are being questioned by NAB about possible wrongdoings in the project which was awarded to DECL in violation of PPRA rules
  • In a market where most of the major sectors ended in red, banking sector emerged as a clear winner, cumulatively adding 129pts to the index with HBL and MCB contributing 89 and 62pts respectively
  • Telecom sector: Pakistan to have 40mn Smartphones by end of 2016

Following are few BUY recommendations:

Pak Suzuki Motors (PSMC) – BUY
Current Price: PKR 420.8
Target Price: PKR 542

Fauji Fertilizer Company (FFC) – BUY
Current Price: PKR 131.0
Target Price: PKR 163.5

ENGRO Fertilizer Limited(EFERT) – BUY
Current Price: PKR 94.4
Target Price: PKR 118.7

Fatima Fertilizer (FATIMA) – BUY
Current Price: PKR 48.8
Target Price: PKR 58.9

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 142.1
Target Price: PKR 238.2

Pak Oilfields (POL) – BUY
Current Price: PKR 310.1
Target Price: PKR 423.0

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 131.0
Target Price: PKR 193.8

Pakistan State Oil (PSO) – BUY
Current Price: PKR 308.8
Target Price: PKR 493

K-Electric Co. (KEL) – BUY 
Current Price: PKR 7.4
Target Price: PKR 13.3

Nishat Mills (NML) – BUY
Current Price: PKR 102.6
Target Price: PKR 168.5 

Nishat Chunian Ltd. (NCL) – BUY
Current Price: PKR 37.6
Target Price: PKR 45.7 

Allied Bank Limited (ABL) – BUY
Current Price: PKR 100.0
Target Price: PKR 140.0 

National Bank (NBP) – BUY
Current Price: PKR 53.1
Target Price: PKR 69.0

United Bank Ltd (UBL) – BUY
Current Price: PKR 161.2
Target Price: PKR 194.00

Habib Bank Limited (HBL) – BUY
Current Price: PKR 216.4
Target Price: PKR 270

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 26.8
Target Price: PKR 34

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 43.24
Target Price: PKR 68

Engro Corporation (ENGRO) – BUY
Current Price: PKR 309.42
Target Price: PKR 403

Dera Ghazi Khan Cement (DGKC) – BUY
Current Price: PKR 135.17
Target Price: PKR 176

Lucky Cement (LUCK) – BUY
Current Price: PKR 525.08
Target Price: PKR 665

Maple Leaf Cement (MLCF) – BUY
Current Price: PKR 67.35
Target Price: PKR 79.05

Kohat Cement (KOHC) – BUY
Current Price: PKR 210
Target Price: PKR 268

Cherat Cement (CHCC) – BUY
Current Price: PKR 85
Target Price: PKR 109

Following are few SELL recommendations:

Fauji Fert. Bin Qasim Ltd. (FFBL) – SELL
Current Price: PKR 60.70
Target Price: PKR 49.00

Pakgen Power Ltd (PKGP) – SELL
Current Price: PKR 29.00
Target Price: PKR 24.00

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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