Karachi Stock Exchange Weekly Analysis 27 Dec, 2015


Top gainers of last week were: Soneri Bank, Attock Refinery Ltd., Jah.Sidd. Co., Fatima Fert.Co., Allied Rental Mod, Nestle Pakistan, Rafhan Maize Prod., Larpir Power Ltd, Askari Bank Ltd. and Shifa International Hospitals.

Top losers of last week were: Associated Services Limited, Pak Tobacco Co.XD, Ferozsons (Lab), Nishat Chunian, Sui South Gas, Sui North Gas Pipe., Indus Dyeing, Colgate Palmolive, Allied Bank and Nishat Mills Limited.

Top ten volume leaders: PAEL, JSCL, SNGP, HBL, TRG, BOP, SSGC, OGDC, FFC, KEL, and ENGRO.

The Karachi Stock Exchange (KSE) market recorded three consecutive days of decline as falling crude oil prices and regulatory concerns for the banking sector caused selling pressure at the bourse, resulting in the benchmark KSE-100 index falling 276 points (0.8%) during the week ended December 23.

Average daily volumes fell sharply by 34.4% and stood at 91.3 million shares while average daily values plummeted 24.5% and were recorded at Rs6.6 billion. The Karachi Stock Exchange’s market capitalisation stood at Rs6.84 trillion ($65.3 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 week was cut short to only three days due to public holidays on December 24 and December 25 on account of 12th Rabiul Awwal and Quaid-e-Azam Day respectively. Investors took a backseat as volumes remained abysmally low in all three trading sessions
  • With oil prices falling to six-year lows, pressure mounted on the KSE-100 index due to the futures contract rollover week
  • Some support came in the form of approval of the ninth tranche of the International Monetary Fund (IMF) loan programme and positive developments about gas supply to Engro Fertilizers
  • The week started off on a negative note as the index fell 118 points on Monday as selling was witnessed in index heavyweights Oil and Gas Development Company due to falling crude oil prices and Habib Bank Limited due to the investigation at its New York branch
  • Foreigners continued to be net sellers at the bourse offloading a net $1.8 million worth of equity during the shortened week. The number was an improvement over the $10.2 million net selling registered in the previous week
  • The fertiliser sector dominated the headlines with news of the Ministry of Petroleum proposing an extension in gas supply from Mari gas field to the Engro Fertilizers’ plant beyond 2015
  • Uncertainty prevails on political front as Anti‐terrorism court ordered to put Dr.Asim on terror charge and issued non‐bailable arrest warrants against numerous senior leaders of a renowned political party
  • International crude (Brent) slumped to eleven years low hovering around USD 36.10/barrel as US lifts ban on its crude exports. This may add fuel to the on‐going fight for market share among oil producing nations
  • Going against the trend, investors opted value hunting in cement scrips with DGKC and CHCC being amongst the major gainers in the sector
  • FFC remained a victim of foreign selling as stock price made a new 52‐week low; closing down by 3.6% during the week
  • NETSOL was in limelight with stock gaining 16% W/W as company signed USD 100mn contracts to implements its software solutions globally
  • The top gainer during the week was SNBL while ATRL and JSCL secured the second and third spot respectively
  • IMF has approved USD498mn tranche for Pakistan. Pakistan's reserves would increase to USD21bn with the inflow of USD498mn from the IMF
  • As a result of the OGRA decision, from January 2016, the gas tariff will go up by 38% for SNGPL consumers. OGRA has approved an increase in gas tariff by PKR107/mmbtu for the consumers of SNGPL, while the regulator has approved a reduction in gas tariff for the consumers of SSGC by PKR25.32/ mmbtu
  • South Africa imposes 14‐77pc dumping duties on Pakistan cement
  • Cotton production falls 32%
  • PAC should decide fate of PKR480bn circular debt
  • Siemens Pakistan to spin off healthcare business
  • Cement industry worried as raw material evaporating fast
  • No intention to privatize PIA: Ishaq Dar
  • Ministry wants Engro to continue getting gas from Mari

Following are few BUY recommendations:

Pak Suzuki Motors (PSMC) – BUY
Current Price: PKR 484.78
Target Price: PKR 542

Indus Motor (INDU) – BUY
Current Price: PKR 1005.39
Target Price: PKR 1293.99

Honda Atlas Cars (HCAR) – BUY
Current Price: PKR 243.52
Target Price: PKR 324.00

Dera Ghazi Khan Cement (DGKC) – BUY
Current Price: PKR 143.89
Target Price: PKR 169.5

Lucky Cement (LUCK) – BUY
Current Price: PKR 495.80
Target Price: PKR 665

Maple Leaf Cement (MLCF) – BUY
Current Price: PKR 71.42
Target Price: PKR 87.4

Fauji Cement (FCCL) – BUY
Current Price: PKR 36.27
Target Price: PKR 39.50

Kohat Cement (KOHC) – BUY
Current Price: PKR 232.12
Target Price: PKR 268

Fauji Fertilizer Company (FFC) – BUY
Current Price: PKR 109.40
Target Price: PKR 163.5

ENGRO Fertilizer Limited (EFERT) – BUY
Current Price: PKR 83.49
Target Price: PKR 125.00

Fatima Fertilizer (FATIMA) – BUY
Current Price: PKR 43.59
Target Price: PKR 58.9

Engro Corporation (ENGRO) – BUY
Current Price: PKR 275.49
Target Price: PKR 362.00

Engro Foods Limited (EFOODS) – BUY
Current Price: PKR 145
Target Price: PKR 181.1

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 115.98
Target Price: PKR 174.8

Pak Oilfields (POL) – BUY
Current Price: PKR 268.92
Target Price: PKR 423.0

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 119.06
Target Price: PKR 193.8

Pakistan State Oil (PSO) – BUY
Current Price: PKR 334
Target Price: PKR 456.8

Attock Petroleum (APL) – BUY
Current Price: PKR 475
Target Price: PKR 620.0

K-Electric Co. (KEL) – BUY
Current Price: PKR 7.35
Target Price: PKR 13.9 

Kot Addu Power Co (KAPCO) – BUY
Current Price: PKR 82.88
Target Price: PKR 97.00

Nishat Mills (NML) – BUY
Current Price: PKR 93
Target Price: PKR 168.5
Pakistan Telecommunication (PTC) – BUY
Current Price: PKR 16
Target Price: PKR 25.1

Allied Bank Limited (ABL) – BUY
Current Price: PKR 91.08
Target Price: PKR 120.7 

National Bank (NBP) – BUY
Current Price: PKR 53.05
Target Price: PKR 69.0

United Bank Ltd (UBL) – BUY
Current Price: PKR 153.63
Target Price: PKR 194.00

Habib Bank Limited (HBL) – BUY
Current Price: PKR 201.80
Target Price: PKR 270

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 28.98
Target Price: PKR 34

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 42.00
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

No comments:

Post a Comment