Karachi Stock Exchange Weekly Analysis 1 Nov, 2015


Top gainers of last week were: Bannu Woollen, Bata (Pak) Ltd., Colgate Palmolive, Indus Motor, Arif Habib Corp, Dawood Hercules Chem, Pak Services, IGI Insurance, Pak Tobacco Co. and Shifa International Hospitals.
Top losers of last week were: Ibrahim Fibres, Allied Rental Mod, Hum Network Ltd, Nestle Pakistan, Millat Tractors, Larpir Power Ltd, Jubilee Gen Ins, Thal Limited, Pakgen Power Ltd. and Attock Cement Ltd.

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

The Karachi Stock Exchange (KSE) market received a spark in the form of impressive earnings announcements that helped the benchmark KSE-100 index gain 316 points (0.9%) and shoot past the 34,000 barrier during the week ended October 30. The benchmark Karachi Stock Exchange (KSE) 100-share Index lost 316 points, or 0.93 percent, to close the week at 34,262 points. KSE 30-share Index shed 129 points, or 0.64 percent, to end at 20,417 points.

Average daily volumes were up slightly by 2.1% and were recorded at 165.2 million shares traded per day, while average daily values picked up 13.4% and stood at Rs9.28 billion per day. The Karachi Stock Exchange’s market capitalisation stood at Rs7.28 trillion ($68.8 billion) at the end of the week.

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

  • The earnings season, along with a recovery in crude oil prices and global equities, proved to be the catalyst and resulted in the KSE-100 index closing at 34,261 points on Friday
  • The cement, auto and banking sectors led the gains during the week after strong results from major players in the respective sectors. The oil and gas sector also rebounded after taking a beating in the previous week
  • Lucky Cement announced its decision to set up a new cement plant in the Punjab province in its earnings announcement
  • The auto sector also performed well after earnings announcements by the Indus Motor Company (Toyota) and Pak Suzuki Motor Company exceeded investors’ expectations. The share price of both companies jumped 11.5% and 5.9%, respectively during the week
  • Pakistan State Oil announced surprisingly good earnings and put a shot in the arm of the Oil Marketing Companies (OMC) sector
  • Foreigners continued to offload equity at the bourse and were net sellers of a whopping $20 million worth of equity during the week
  • NBP and UBL announced their earnings with NBP’s profits expanding by 7% Q/Q whereas UBL’s results were mainly in line with market expectations
  • EFERT’s surprise payout announcement failed to mask the otherwise disappointing results as FFBL faced the ire of investors after below par earnings
  • KEL’s doubled earnings were cheered by the market as the scrip gained 3.6% during the week
  • KEL, Pakistan and US OPIC executed a commitment letter for USD250mn 10‐year financing project. it is expected that K-Electric grid strengthening project will significantly improve the reliability, stability and efficiency of the K‐Electric power network and increase K‐Electric's transmission system capacity by 33% (up to 1000MVA), thereby allowing it to deliver more electricity to customers
  • Fatima Fertilizer (FATIMA) is scheduled to announce its 9MCY15 results on October 30,2015 for the period of 9MCY15
  • NEPRA approved a refund of PKR 2.88 per unit to the consumers over charged by the Discos in September 2015
  • The value‐added textile sector on Monday slammed the imposition of 10% R/D on import of cotton yarn and fabric from India on the grounds that a case of anti‐dumping filed by spinners’ body is already pending before the NTC
  • On Tuesday morning there was an incident of a fire at Crude Oil Heater of Byco Oil Pakistan Limited, Mouza Kund, Lasbella, Balochistan. The fire was controlled by the Refinery's emergency response team
  • FFC has entered into a joint venture for setting up large‐scale fertilizer plant in Tanzania
  • The forex market was buzzing with activity as local currency hit 21 month low. Despite continuous foreign inflows, PKR shed 111 paisas (↓ 1.04%) against US dollar, allowing green back to rise to PKR 105.52

Following are few BUY recommendations:

Pak Suzuki Motors (PSMC) – BUY
Current Price: PKR 465.8
Target Price: PKR 542

Indus Motor (INDU) – BUY
Current Price: PKR 1,194.5
Target Price: PKR 1293.99

Dera Ghazi Khan Cement (DGKC) – BUY
Current Price: PKR 140.7
Target Price: PKR 169.5

Lucky Cement (LUCK) – BUY
Current Price: PKR 535.3
Target Price: PKR 665

Maple Leaf Cement (MLCF) – BUY
Current Price: PKR 71.1
Target Price: PKR 87.4

Fauji Cement (FCCL) – BUY
Current Price: PKR 35.79
Target Price: PKR 39.50

Kohat Cement (KOHC) – BUY
Current Price: PKR 215
Target Price: PKR 268

Fauji Fertilizer Company (FFC) – BUY
Current Price: PKR 125.51
Target Price: PKR 163.5

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 91.51
Target Price: PKR 125.00

Fatima Fertilizer (FATIMA) – BUY
Current Price: PKR 46.6
Target Price: PKR 58.9

Engro Corporation (ENGRO) – BUY
Current Price: PKR 305.6
Target Price: PKR 362.00

Engro Foods Limited (EFOODS) – BUY
Current Price: PKR 149.7
Target Price: PKR 181.1

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 138.0
Target Price: PKR 174.8

Pak Oilfields (POL) – BUY
Current Price: PKR 319.0
Target Price: PKR 423.0

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 127.1
Target Price: PKR 193.8

Pakistan State Oil (PSO) – BUY
Current Price: PKR 337.5
Target Price: PKR 456.8

Attock Petroleum (APL) – BUY
Current Price: PKR 518.0
Target Price: PKR 620.0

K‐Electric Co. (KEL) – BUY 
 Current Price: PKR 7.6
Target Price: PKR 13.9 

Kot Addu Power Co (KAPCO) – BUY
Current Price: PKR 84.67
Target Price: PKR 97.00

Nishat Mills (NML) – BUY 
 Current Price: PKR 102.9
Target Price: PKR 168.5
Pakistan Telecommunication (PTC) – BUY
Current Price: PKR 17.6
Target Price: PKR 25.1

Allied Bank Limited (ABL) – BUY
Current Price: PKR 100.9
Target Price: PKR 120.7 

National Bank (NBP) – BUY 
 Current Price: PKR 55.8
Target Price: PKR 69.0

United Bank Ltd (UBL) – BUY
Current Price: PKR 164.1
Target Price: PKR 194.00

Habib Bank Limited (HBL) – BUY
Current Price: PKR 209.7
Target Price: PKR 270

Bank Al-Falah (BAFL) – BUY 
 Current Price: PKR 28.7
Target Price: PKR 34

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 43.00
Target Price: PKR 68

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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