Karachi Stock Exchange Weekly Analysis 4 Jan, 2016


Top gainers of last week were: Pak Tobacco Co., Nishat Chunian, Gul Ahmed, Maple Leaf Cem., Kohinoor Textile, Fauji Fertilizer Co., Ferozsons (Lab), D.G.K.Cement, Attock Cement Ltd and Nishat Mills Limited.
Top losers of last week were: Associated Services Limited, Shifa International Hospitals, Ibrahim Fibres, Indus Dyeing, Pak Elektron, Larpir Power Ltd, Bata (Pak) Ltd., International Steels Ltd, Ghani Glass Ltd and J.D.W.Sugar.

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

The Karachi Stock Exchange (KSE) market Range bound activity was seen at local bourse during the week, but advent of the New Year resulted in the benchmark KSE-100 index closing up 2.2% during the week. The benchmark Karachi Stock Exchange (KSE) 100-share Index gain 2.2 percent, to close the week at 33,228.95 points.

Average daily volumes increased 24% to 113.7mn shares, while average daily value remained flat at Rs6.6bn/US$62.5mn.

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

  • FBR managed to surpass its quarterly target by PKR20bn taking the FY16TD collection to PKR1.37tn
  • Bloodshed in China’s stock market and oil (Arab Light CY15: ↓43% Y/Y) going into a freefall in the second half of the year elicited exodus of foreign funds from July’15 onwards (CY15 FIPI outflow: USD315mn), wiping out all the gains of the market as the index closed shy of 33k, gaining 2.13% Y/Y 
  • CY16 is set to subdued year for international markets as oil prices are anticipated to linger on USD30‐40/barrel
  • Power tariff cut by PM by PKR3/unit for industrial units along with robust provisional sales numbers kept interest alive in cements
  • Sui gas field re‐pricing by government brought excitement in PPL (100% owned field) whereas, KEL was in the lime light following expression of interest in FESCO bidding
  • Government banks’ borrowing surges 30% till November‐end
  • Government collected PKR 6.7bn from bank transaction tax in July‐Oct
  • SSGC plans expansion projects in Karachi
  • Federal Minister for Industries and Production Ghulam Murtaza said that under the new industrial policy small car prices would be brought down to makes them affordable for common people 
  • Construction work on the Diamer‐Bhasha Dam would start next year
  • Government raises gas price by 50% for Sui field
  • Government decided to keep the prices of petrol and HOBC unchanged for January. However, it reduced the rates of all other petroleum products, including diesel
  • Tobacco led the gains on a sector level by increasing 16.6% over the week
  • Construction & Materials (Cement) and Food Producers followed, which rose 5.7% and 3.5%, respectively
  • Technology Hardware & Equipment and Household Goods declined 2.7% and 2.4%, respectively
  • Foreigners were net sellers of US$3.2mn during the week. Major selling was seen in Banks and Oil & Gas (net selling of US$7.3mn and US$2.7mn, respectively) while net buying of US$3.2mn in Cement sector provided some support to overall outflow
  • CPI inflation for the month of Dec 2015 clocked in at 3.19% YoY, which was lower than expectations. Inflation on MoM declined by 0.57%
  • Inflation remained soft during December ’15 with numbers sitting in at 3.2%

Following are few BUY recommendations:

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 500.80
Target Price: PKR 542

Honda Atlas Cars (HCAR) – BUY 
Current Price: PKR 240.61
Target Price: PKR 324.00

Indus Motor (INDU) – BUY 
Current Price: PKR 1025.68
Target Price: PKR 1293.99

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 118.75
Target Price: PKR 163.5

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 85.83
Target Price: PKR 118.7

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 44.07
Target Price: PKR 58.9

Engro Corporation (ENGRO) – BUY
Current Price: PKR 284.85
Target Price: PKR 362.00

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 117.86
Target Price: PKR 212.00

Pak Oilfields (POL) – BUY 
Current Price: PKR 269.19
Target Price: PKR 423.0

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 123.08
Target Price: PKR 193.8

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 332
Target Price: PKR 493

Attock Petroleum (APL) – BUY 
Current Price: PKR 498.51
Target Price: PKR 626.37

Nishat Mills (NML) – BUY 
Current Price: PKR 100
Target Price: PKR 168.5

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 95.41
Target Price: PKR 135.00

National Bank (NBP) – BUY 
Current Price: PKR 54.33
Target Price: PKR 69.0

United Bank Ltd (UBL) – BUY 
Current Price: PKR 155.86
Target Price: PKR 194.00

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 201.07
Target Price: PKR 270

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 29.29
Target Price: PKR 34

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 42.00
Target Price: PKR 68

Dera Ghazi Khan Cement (DGKC) – BUY
Current Price: PKR 154.67
Target Price: PKR 176

Lucky Cement (LUCK) – BUY
Current Price: PKR 517.83
Target Price: PKR 665

Maple Leaf Cement (MLCF) – BUY
Current Price: PKR 78.30
Target Price: PKR 79.05

Fauji Cement (FCCL) – BUY
Current Price: PKR 38.18
Target Price: PKR 39.50

Kohat Cement (KOHC) – BUY
Current Price: PKR 243.07
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

1 comment:

  1. Dear Khurram Please revise the Target Prices and update according to short term investment at least 6 months