Karachi Stock Exchange Weekly Analysis 26 Oct, 2015


Top gainers of last week were: ARPL, PICT, NETSOL, RMPL, ABOT, HASCOL, SNGP, DAWH, BAFL and HMB
Top losers of last week were: PIOC, BATA, ARM, GRAYS, SEARL, MEBL, DGKC, MLCF, PTC and EPCL

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

The Karachi Stock Exchange (KSE) market index movement was bearish. The benchmark Karachi Stock Exchange (KSE) 100-share Index lost 10 points, or -0.03 percent, to close the week at 33,945 points. KSE 30-share Index shed 121 points, or -0.59 percent, to end at 20,288 points.

Average traded volumes during the week remained flat at 175mn shares v.s. 178mn shares in the past week (down 1.67% WoW). On the same lines, average traded value went up by 20% WoW to US$92mn.

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

  • Prime Minister Nawaz Sharif is on US visit on the invitation of President Barack Obama. Top issue on the table is extension of US military presence in neighboring Afghanistan till 2017 followed by other issues relating to bilateral cooperation in various fields
  • K-Electric (KEL) has obtained a loan of US$250 from Citi bank, for the period of 10 years, to upgrade its power grid and improve transmission system capacity by 33%. Aforementioned projects will help the company to curtail its line losses
  • The textile sector saw gains as the government announced incentives for the spinning sector while the auto-sector also attracted interest on news of the auto-policy being closer to finalisation
  • The oil and gas sector was again at the center of events at the bourse as crude oil prices slowly crept downwards throughout the week. Additionally, result announcements by Pakistan Petroleum Limited and Pakistan Oilfields were below expectations and proved to be a damper on the market
  • The banking sector, on the other hand, continued to recover strongly after earnings announcements by major banks were largely inline with expectations
  • Foreigners were again sellers at the bourse, offloading $2.6 million worth of net equity on the back of the $9.2 million net selling the previous week. Foreigners have now offloaded a net of $28 million worth of equity in the Pakistani market in October alone
  • Imposition of 10% RD on Indian yarn imports and 100bps cut in ERF and LTFF under textile incentive package
  • Release of PkR150.7bn by the GoP under PSDP vs. budgeted PkR700bn
  • Current account balance posting a US$306mn surplus in Sept’15
  • OGRA’s rejection of SNGPL’s plea for a PkR190/mmbtu (47%) increase in the gas tariff, to allow the utility to meet its Final Revenue Requirement of PkR84bn
  • Strong results from the textile sector should add to the recent interest in the segment from the textile relief package

Following are few BUY recommendations:

Pak Suzuki Motors (PSMC) – BUY
Current Price: PKR 440
Target Price: PKR 542

Indus Motor (INDU) – BUY
Current Price: PKR 1,071
Target Price: PKR 1293.99

Fauji Fertilizer Company (FFC) – BUY
Current Price: PKR 125.8
Target Price: PKR 163.5

ENGRO Fertilizer Limited (EFERT) – BUY
Current Price: PKR 90.4
Target Price: PKR 118.7

Fatima Fertilizer (FATIMA) – BUY
Current Price: PKR 47.0
Target Price: PKR 58.9

Engro Corporation (ENGRO) – BUY
Current Price: PKR 303.4
Target Price: PKR 362.00

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 137.3
Target Price: PKR 212.00

Pak Oilfields (POL) – BUY
Current Price: PKR 314.0
Target Price: PKR 423.0

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 126.8
Target Price: PKR 193.8

Pakistan State Oil (PSO) – BUY
Current Price: PKR 318.8
Target Price: PKR 493

Attock Petroleum (APL) – BUY
Current Price: PKR 519.3
Target Price: PKR 626.37

Nishat Mills (NML) – BUY
Current Price: PKR 103.1
Target Price: PKR 168.5 

Allied Bank Limited (ABL) – BUY
Current Price: PKR 99.3
Target Price: PKR 135.00 

National Bank (NBP) – BUY
Current Price: PKR 55.4
Target Price: PKR 69.0

United Bank Ltd (UBL) – BUY
Current Price: PKR 163.6
Target Price: PKR 194.00

Habib Bank Limited (HBL) – BUY
Current Price: PKR 208.0
Target Price: PKR 270

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 28.0
Target Price: PKR 34

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

Dera Ghazi Khan Cement (DGKC) – BUY
Current Price: PKR 140.3
Target Price: PKR 176

Lucky Cement (LUCK) – BUY
Current Price: PKR 540.2
Target Price: PKR 665

Maple Leaf Cement (MLCF) – BUY
Current Price: PKR 69.6
Target Price: PKR 79.05

Fauji Cement (FCCL) – BUY
Current Price: PKR 34
Target Price: PKR 39.50

Kohat Cement (KOHC) – BUY
Current Price: PKR 220
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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