Karachi Stock Exchange Weekly Analysis 6 Dec, 2015

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

Top gainers of last week were: Ghani Glass Ltd, Ferozsons (Lab), Stand.Chart.Bank, Service Indus, Colgate Palmolive, Kohat Cement, GlaxoSmithKline Pak., Pioneer Cement, Engro Corp and Fauji Cement Company Ltd.

Top losers of last week were: Associated Services Limited, Bannu Woollen, Jah.Sidd. Co., Ibrahim Fibres, Pak Oilfields, Packages Limited, Shifa International Hospitals, Sui South Gas, Abbott Lab and Oil and Gas Deve

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

The Karachi Stock Exchange (KSE) market witnessed high volatility during the week where escalation in political uncertainty caused the KSE-100 index to lose 1250pts in the week’s first two consecutive sessions. The benchmark Karachi Stock Exchange (KSE) 100-share Index lost -252 points, or -0.77 percent, to close the week at 32,708 points. KSE 30-share Index shed -206 points, or -1.06 percent, to end at 19,200 points.

Average traded volumes during the week increased to 154.6mn shares (+3.88% WoW). On the same lines, average traded value also improved by 3% WoW to US$72.8mn. As far as FIPI is concerned foreign investors’ sold US$17mn during the week as compared to net selling of US$13.1mn in the past week.

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

  • Nov’15 CPI-based inflation clocking in at 2.73%YoY (0.59%MoM) vs. 1.61%YoY in Oct’15
  • GoP increasing import duties by 5-10% on luxury items (incl. used cars >1000cc), FED on cigarettes and customs tariffs by 1%
  • SECP accepting major broker demands regarding the proposed Securities Brokers Regulations, 2015
  • Nishat Chunian, Nishat Power, Hub Power (Narowal), Saif Power and 5 other IPPs approaching international arbitration against NTDC for unpaid capacity payments of PkR11bn
  • PkR/US$ parity coming under pressure in the open market to trade at PkR107.70 as US$ continued to gain strength
  • Foreigners continued to be net sellers at the bourse, offloading a net of $17 million worth of equity during the week, as opposed to the $13.1 million net selling in the previous week
  • Oil prices continued to remain low and showed no signs of improving after OPEC announced that it would maintain oil production at high levels despite the current supply glut. With crude oil prices sustaining low levels, the all-important Oil and Gas sector remained under pressure and shed 3.8% of its value during the week, knocking off 142 points from the KSE-100 index in the process
  • Pakistan’s non‐textile exports fell by 22.56% to USD2.605bn during the 4MFY16 from USD3.364bn in the same period last year. Exports of tanned leather dropped 22.48% and leather products by 16.80%

Following are few BUY recommendations:

Pak Suzuki Motors (PSMC) – BUY
Current Price: PKR 460.0
Target Price: PKR 542

Indus Motor (INDU) – BUY
Current Price: PKR 1,021.7
Target Price: PKR 1293.99

Honda Atlas Cars (HCAR) – BUY
Current Price: PKR 240.30
Target Price: PKR 324.00

Dera Ghazi Khan Cement (DGKC) – BUY
Current Price: PKR 133.6
Target Price: PKR 169.5

Lucky Cement (LUCK) – BUY
Current Price: PKR 495.3
Target Price: PKR 665

Maple Leaf Cement (MLCF) – BUY
Current Price: PKR 67.6
Target Price: PKR 87.4

Fauji Cement (FCCL) – BUY
Current Price: PKR 35
Target Price: PKR 39.50

Kohat Cement (KOHC) – BUY
Current Price: PKR 213
Target Price: PKR 268

Fauji Fertilizer Company (FFC) – BUY
Current Price: PKR 117.5
Target Price: PKR 163.5

ENGRO Fertilizer Limited (EFERT) – BUY
Current Price: PKR 81.5
Target Price: PKR 125.00

Fatima Fertilizer (FATIMA) – BUY
Current Price: PKR 42.0
Target Price: PKR 58.9

Engro Corporation (ENGRO) – BUY
Current Price: PKR 280.3
Target Price: PKR 362.00

Engro Foods Limited (EFOODS) – BUY
Current Price: PKR 145.9
Target Price: PKR 181.1

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 119.4
Target Price: PKR 174.8

Pak Oilfields (POL) – BUY
Current Price: PKR 286.0
Target Price: PKR 423.0

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 113.3
Target Price: PKR 193.8

Pakistan State Oil (PSO) – BUY
Current Price: PKR 319
Target Price: PKR 456.8

Attock Petroleum (APL) – BUY
Current Price: PKR 492.0
Target Price: PKR 620.0

K-Electric Co. (KEL) – BUY
Current Price: PKR 7.3
Target Price: PKR 13.9

Kot Addu Power Co (KAPCO) – BUY
Current Price: PKR 83.8
Target Price: PKR 97.00

Nishat Mills (NML) – BUY
Current Price: PKR 98.17
Target Price: PKR 168.5
 
Pakistan Telecommunication (PTC) – BUY
Current Price: PKR 16.39
Target Price: PKR 25.1

Allied Bank Limited (ABL) – BUY
Current Price: PKR 95.35
Target Price: PKR 120.7

National Bank (NBP) – BUY
Current Price: PKR 54.31
Target Price: PKR 69.0

United Bank Ltd (UBL) – BUY
Current Price: PKR 153.53
Target Price: PKR 194.00

Habib Bank Limited (HBL) – BUY
Current Price: PKR 209.20
Target Price: PKR 270

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 29.01
Target Price: PKR 34

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