Karachi Stock Exchange Weekly Analysis 27 Sep, 2015


Top gainers of last week were: Searle Pak, Bata (Pak) Ltd., Cherat Cement, Sui South Gas, Jubilee Gen Ins, J.D.W.Sugar, TRG Pakistan Ltd, Indus Dyeing, Service Indus and International Steels Ltd.
Top losers of last week were: Punjab Oil, Orix Leasing, Indus Motor, Stand.Chart.Bank, Oil and Gas Deve, Shezan International Ltd, Allied Bank, Gul Ahmed, Pakgen Power Ltd. and Millat Tractors.

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

The Karachi Stock Exchange (KSE) market observed a somber activity this week due to absence of triggers. The benchmark Karachi Stock Exchange (KSE) 100-share Index gained 61.89 points, or 0.19 percent, to close the week at 32,822.84 points. KSE 30-share Index shed 44.12 points, or 0.22 percent, to end at 19,661.50 points.

The market remained dull in a shortened trading week as upcoming Eid Holidays negatively impacted volumes. An average daily turnover was down 8.0 percent to 124 million per day. On the overseas front, foreign portfolio investment numbers for the week showed a net selling of $1.1 million.

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

  • Foreign investors remained bullish on banks during the week, while selling was seen in the chemicals sector
  • Lack of optimism due to fears of NAB’s (National Accountability Bureau) investigations against high profile industrialists and brokers continued to hamper market performance despite upbeat corporate valuations
  • In the local market, the only cheerful news was the earnings by DG Khan Cement, which set forth a rally in other cement stocks; but it was short-lived
  • Current account deficit recorded at 0.8 percent of gross domestic product for the first two months of the fiscal year 2015/16, compared to 3.2 percent in same period last year
  • Textile exports rose 8.3 percent in August, despite lower cotton prices in the international market
  • Large scale manufacturing posted 4.7 percent growth in July 2015, compared to last year, with autos, fertilizers and chemicals among the top growing sectors
  • The latest Asian Development Bank’s report painted a mixed picture of the economy, acknowledging the prospect of growth picking up to 4.5 percent
  • Asian markets remained volatile on continued worries about Chinese economy
  • Major gain was seen in sectors such as Technology Hardware and Equipment (4.7%) and Support Services (4.3%), and Real Estate Investment and Services (4.2%) while major losers were Electronic and Electrical Goods (2.8%) Oil and Gas (2.5%) and Automobile and Parts (2.1%)
  • According to the latest data released by State bank of Pakistan (SBP), banking spread improved by 4bps to 5.51% due to decline in cost of deposits. On YoY basis, spreads were down by 20bps due to falling interest rates. The spreads are anticipated to come down post cut in policy rate in Sep 2015 however major investment in PIBs (~30% of deposits) will provide some support to sector margins in 2015
  • Avanceon (AVN) through its wholly owned subsidiary Avanceon FZE UAE, (Avanceon Group) has entered into firm contracts of US$5.1mn with various clients in Qatar and Saudi Arabia (KSA) regions as per a KSE notice
  • IMF has warned that a moderate pick‐up in inflation is expected in Pakistan in coming months as international energy prices stabilize
  • Mari Petroleum announced on Friday to have discovered reserves of crude oil, condensate and natural gas in its Karak Block’s Kalabagh Well in Mianwali
  • ADB to give $200m for public‐private partnership
  • In the light of new auto policy, a plan for launching passenger cars in Pakistan by Nissan and Renault was discussed at a meeting held between the officials of EDB, BoI and automobile manufacturers
  • PSMC has launched its Inazuma Aegis bike, a locally assembled motorcycle that is exclusively designed for Pakistan’s security institutions

Following are few BUY recommendations:

Pak Suzuki Motors (PSMC) – BUY
Current Price: PKR 418.21
Target Price: PKR 542

Honda Atlas Cars (HCAR) – BUY
Current Price: PKR 224.36
Target Price: PKR 324.00

Indus Motor (INDU) – BUY
Current Price: PKR 1025.00
Target Price: PKR 1293.99

Fauji Fertilizer Company (FFC) – BUY
Current Price: PKR 125.00
Target Price: PKR 163.5

ENGRO Fertilizer Limited (EFERT) – BUY
Current Price: PKR 92.27
Target Price: PKR 118.7

Fatima Fertilizer (FATIMA) – BUY
Current Price: PKR 45.99
Target Price: PKR 58.9

Engro Corporation (ENGRO) – BUY
Current Price: PKR 305.79
Target Price: PKR 362.00

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 128.04
Target Price: PKR 212.00

Pak Oilfields (POL) – BUY
Current Price: PKR 300.29
Target Price: PKR 423.0

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 119.59
Target Price: PKR 193.8

Pakistan State Oil (PSO) – BUY
Current Price: PKR 292
Target Price: PKR 493

Attock Petroleum (APL) – BUY
Current Price: PKR 520.00
Target Price: PKR 626.37

Nishat Mills (NML) – BUY
Current Price: PKR 100
Target Price: PKR 168.5

Allied Bank Limited (ABL) – BUY
Current Price: PKR 94.95
Target Price: PKR 135.00

National Bank (NBP) – BUY
Current Price: PKR 52.12
Target Price: PKR 69.0

United Bank Ltd (UBL) – BUY
Current Price: PKR 153.60
Target Price: PKR 194.00

Habib Bank Limited (HBL) – BUY
Current Price: PKR 204.71
Target Price: PKR 270

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 25.90
Target Price: PKR 34

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 42.09
Target Price: PKR 68

Dera Ghazi Khan Cement (DGKC) – BUY
Current Price: PKR 138.14
Target Price: PKR 176

Lucky Cement (LUCK) – BUY
Current Price: PKR 534.51
Target Price: PKR 665

Maple Leaf Cement (MLCF) – BUY
Current Price: PKR 66.54
Target Price: PKR 79.05

Fauji Cement (FCCL) – BUY
Current Price: PKR 34.16
Target Price: PKR 39.50

Kohat Cement (KOHC) – BUY
Current Price: PKR 199
Target Price: PKR 268

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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