Karachi Stock Exchange Weekly Analysis 19 Oct, 2015

BUY recommendations are PSMC, HCAR, INDU, FFC, EFERT, FATIMA, ENGRO, OGDC, POL, PPL, PSO, APL, NML, ABL, NBP, UBL, HBL, BAFL, BAHL, DGKC, LUCK, MLCF, FCCL and KOHC

Top gainers of last week were: Associated Services Limited, The Searle Pak, Pak Int.Bulk Ter, Jah.Sidd. Co., EFU General Ins, Pak Tobacco Co.XD, Mari Petroleum, National Bank of Pak, Ibrahim Fibres, and Habib Metro Bank
    
Top losers of last week were: Kot Addu Power Co., Shifa International Hospitals, Bannu Woollen, Service Indus, Punjab Oil, Attock Petroleum, Honda Atlas Cars, Lucky Cement, Fauji Cement Company Ltd. and Packages Limited

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

The Karachi Stock Exchange (KSE) market index dispelled an ‘upbeat’ aura where the week terminated at 33,954pts, up 0.3%WoW. The benchmark Karachi Stock Exchange (KSE) 100-share Index gained 112 points, or 0.33 percent, to close the week at 33,955 points. KSE 30-share Index shed 25 points, or 0.12 percent, to end at 20,409 points.

Average traded volumes during the week increased to 181mn shares vs 175mn shares in the past week (+3.4% WoW). However, Average traded value followed reversed trajectory and was down by 10.2%WoW to US$85mn.

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

  • Arablite dropped to US$46.89/bbl from US$49.63/bbl last week though Oil sector witness 4% appreciation in value
  • Confusion still prevails over the taking back of gas tariff hike and reduction in price per bag, therefore the sector remained under pressure where the major players in the fertilizer sector closed in the red zone
  • News of LUCK expanding in the North gives rise to speculation that other major players will do the same, which can eventually lead to the big players to get into a price war to capture market share, although this speculation will become valid as and when these expansions come on line not before at least 2‐3 years
  • Some renewed interest was seen in the textile sector as the Govt. agreed to announce textile package by the end of Oct 2015
  • The Ministry of National Food Security and Research notified detailed procedure of the subsidy on DAP, NP and NKP, which would be paid after the sale of bagged fertilizers on the basis of sales tax invoice
  • Pakistan and Russia inked an agreement to lay 1000kms Karachi-Lahore LNG pipeline cos􀆟ng US$2bn
  • The GoP borrowed PkR170bn through MTB auctions with 3mth, 6mth and 12mth cut-off yields coming in at 6.44%, 6.48% and 6.48% respectively
  • Export/Import for Sept'15 at US$1.7bn/US$3.4bn, down 20%/23%YoY, with net deficit of US$1.7bn down 25% according to PBS figures
  • MQM agrees to withdraw resignations
  • Textile sector marks black day as relief package delayed
Following are few BUY recommendations:

Pak Suzuki Motors (PSMC) – BUY Current Price: PKR 427.75
Target Price: PKR 542

Honda Atlas Cars (HCAR) – BUY Current Price: PKR 238.15
Target Price: PKR 324.00

Indus Motor (INDU) – BUY Current Price: PKR 1,048
Target Price: PKR 1293.99

Fauji Fertilizer Company (FFC) – BUY Current Price: PKR 125.18
Target Price: PKR 163.5

ENGRO Fertilizer Limited (EFERT) – BUY Current Price: PKR 91.27
Target Price: PKR 118.7

Fatima Fertilizer (FATIMA) – BUY Current Price: PKR 45.89
Target Price: PKR 58.9

Engro Corporation (ENGRO) – BUYCurrent Price: PKR 305.67
Target Price: PKR 362.00

Oil & Gas Development Co. (OGDC) – BUY Current Price: PKR 138.62
Target Price: PKR 212.00

Pak Oilfields (POL) – BUY Current Price: PKR 319.69
Target Price: PKR 423.0

Pakistan Petroleum (PPL) – BUY Current Price: PKR 135.11
Target Price: PKR 193.8

Pakistan State Oil (PSO) – BUY Current Price: PKR 330.18
Target Price: PKR 493

Attock Petroleum (APL) – BUY Current Price: PKR 516.38
Target Price: PKR 626.37

Nishat Mills (NML) – BUY Current Price: PKR 102.14
Target Price: PKR 168.5 

Allied Bank Limited (ABL) – BUY Current Price: PKR 97.87
Target Price: PKR 135.00 

National Bank (NBP) – BUY Current Price: PKR 55.12
Target Price: PKR 69.0

United Bank Ltd (UBL) – BUY Current Price: PKR 163.29
Target Price: PKR 194.00

Habib Bank Limited (HBL) – BUY Current Price: PKR 206.51
Target Price: PKR 270

Bank Al-Falah (BAFL) – BUY Current Price: PKR 27.10
Target Price: PKR 34

Bank Al-Habib (BAHL) – BUY Current Price: PKR 43.23
Target Price: PKR 68

Dera Ghazi Khan Cement (DGKC) – BUYCurrent Price: PKR 146.00
Target Price: PKR 176

Lucky Cement (LUCK) – BUY
Current Price: PKR 534.78
Target Price: PKR 665

Maple Leaf Cement (MLCF) – BUYCurrent Price: PKR 72.64
Target Price: PKR 79.05

Fauji Cement (FCCL) – BUYCurrent Price: PKR 35.31
Target Price: PKR 39.50

Kohat Cement (KOHC) – BUYCurrent Price: PKR 209.70
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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