Karachi Stock Exchange Weekly Analysis 30 Nov, 2015


Top gainers of last week were: Associated Services Limited, Mari Petroleum, Sui South Gas, Muree Brewery Co Ltd, Shifa International Hospitals, Ferozsons (Lab), Meezan Bank, Pak Suzuki Motor, Nishat Chunian Power and J.D.W.Sugar.
Top losers of last week were: Pak Elektron, Fatima Fert.Co., Jubilee Gen Ins, Bannu Woollen, Engro Foods Ltd, Arif Habib Corp, MCB Bank Ltd, Pioneer Cement, Honda Atlas Cars and Maple Leaf Cement.

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

The Karachi Stock Exchange (KSE) market index remained under the shadow of dark clouds wherein the bears loomed large as the benchmark index spilled 896 points during the week. The benchmark Karachi Stock Exchange (KSE) 100-share Index lost 896 points, or -2.65 percent, to close the week at 32,960 points. KSE 30-share Index shed 595 points, or -2.98 percent, to end at 19,406 points.

Average traded volumes during the week went down to 150mn shares (down 17.6% WoW). On the same lines, average traded value also declined by 9.2% WoW to US$51mn.

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

  • The decision by the State Bank (SBP) to keep the policy rate unchanged was highly in line with market expectations
  • The banking scrips reacted contrary to expectations of Bull Run declined by 2.38%WoW as the SBP decision brings an end to a cycle of rate cuts which had led to an attrition of banking interest rate spreads
  • VimpelCom Ltd and its 51.9%‐owned Global Telecom Holding unit are merging their Mobilink operations in Pakistan with those of Warid Telecom (Pvt) Ltd, creating a company with 45mn customers. The deal is expected to create capital and operating expenditure synergies of about USD 500mn. Mobilink CEO will become CEO of the combined business, whose board will consist of six directors from the VimpelCom and Global Telecom side and one from Warid's parent Dhabi Group
  • Bank Al Falah (BAFL PA) +0.74% rallied on the news of a merger happening between Mobilink and Warid Telecom as the bank owns 8.76% stake in Warid Telecom)
  • The oil and gas sector continued to bleed (-2.09%) vis‐a‐vis the route of global oil prices as index heavy weights OGDC ‐2.79% and POL ‐2.99% led the decline
  • Gas utility Sui South (SSGC) +9.94% rallied on speculation that the company will soon announce long awaited results
  • The cement sector declined 2.68%, led by LUCK ‐2.45% and DGKC ‐3.9% as news of a Chinese company setting up a plant in the south cast concerns over supply and pricing power
  • Engro‘s subsidiary Engro Polymer (EPCL) gained 10.09% on the back of material information disclosure that ATS Synthetics is seeking to acquire 56.2% shareholding of EPCL
  • On the local front rumors of NAB investigations being opened against prominent business names sent shockwaves across palpable investors, who were hesitant in taking any fresh positions
  • ADB has approved combined loan assistance of nearly USD1.4bn for 2 ‐ programmed that will help Pakistan resolve some of the key issues in the power sector, allowing it to lift growth, boost incomes and cut poverty 
  • Government of Pakistan urged to curb Iranian cement smuggling
  • Vehicles imports increased by 76.7% in the first fourth months of 2015‐16 to reach 14,106 units as compared with same period of previous year showing its high demand mainly on the small cars segments, the industry numbers said  

Following are few BUY recommendations:

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 475.2
Target Price: PKR 542

Honda Atlas Cars (HCAR) – BUY 
Current Price: PKR 240.46
Target Price: PKR 324.00

Indus Motor (INDU) – BUY 
Current Price: PKR 1041.76
Target Price: PKR 1293.99

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 121.60
Target Price: PKR 163.5

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 82.30
Target Price: PKR 118.7

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 42.41
Target Price: PKR 58.9

Engro Corporation (ENGRO) – BUY
Current Price: PKR 274.01
Target Price: PKR 362.00

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 125.20
Target Price: PKR 212.00

Pak Oilfields (POL) – BUY 
Current Price: PKR 305.32
Target Price: PKR 423.0

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 117.40
Target Price: PKR 193.8

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 324
Target Price: PKR 493

Attock Petroleum (APL) – BUY 
Current Price: PKR 502.00
Target Price: PKR 626.37

Nishat Mills (NML) – BUY 
Current Price: PKR 97.4
Target Price: PKR 168.5

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 96.4
Target Price: PKR 135.00

National Bank (NBP) – BUY 
Current Price: PKR 55.9
Target Price: PKR 69.0

United Bank Ltd (UBL) – BUY 
Current Price: PKR 160.5
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 28.9
Target Price: PKR 34

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 44
Target Price: PKR 68

Dera Ghazi Khan Cement (DGKC) – BUY
Current Price: PKR 132
Target Price: PKR 176

Lucky Cement (LUCK) – BUY
Current Price: PKR 493
Target Price: PKR 665

Maple Leaf Cement (MLCF) – BUY
Current Price: PKR 67.34
Target Price: PKR 79.05

Fauji Cement (FCCL) – BUY
Current Price: PKR 34.36
Target Price: PKR 39.50

Kohat Cement (KOHC) – BUY
Current Price: PKR 205.92
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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