Pakistan Stock Exchange (PSX) Weekly Analysis 2 Feb, 2016

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

Top gainers of last week were: Ibrahim Fibres, Pak Tobacco Co, Pakcem Limited, Archroma Pakistan, D.G.K.Cement, National Refinery, Kohat Cement, Gul Ahmed, Nishat Chunian and EFU Life Assur Ltd.
   
Top losers of last week were: Ferozsons (Lab), Nestle Pakistan, Shifa International Hospitals, Habib Bank Ltd, Hum Network Ltd, Meezan Bank, Bank Al‐Falah, ICI Pakistan, K‐Electric, and Associated Services Limited.

Top ten volume leaders: TRG, KEL, DGKC, FCCL, PAEL, FFBL, SSGC, BOP, MLCF, PPL, and OGDC.

The Karachi Stock Exchange (KSE) market remained sensitive to the global crude prices as the market moved parallel to the commodity prices. The benchmark Karachi Stock Exchange (KSE) 100-share Index gain 350 points or 1.13 percent, to close the week at 31,299 points, while KSE 30-index has reached 18,179 by gaining 238 points or 1.33 percent.

Average traded value followed the same path and went down by 2%WoW to US$66mn. However, market capitalization rose to US$63.2bn (up 1.4%WoW). As far as FIPI is concerned, foreigners bought US$7mn during the week as compared to net selling of US$31mn in the past week.

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


  • Recovery in international oil prices over the week lent relief to the local bourse
  • Average daily volume declined 21% to 116.8mn shares and average daily value declined 13% to Rs7bn/US$66.6mn
  • Tobacco, Construction & Materials and Oil & Gas were major gainers during the week, up 11.5%, 4.2% and 3.9%, respectively. Media and Pharma & Bio Tech were major losers as they declined 3.4% and 2.7% respectively
  • Foreigners were net sellers of US$7mn in the outgoing week. Cement sector attracted the most attention with net buying of US$6.8mn. Major selling was seen in Banks and Electricity sector with net selling of US$6.4mn and US$2mn, respectively  
  • Atlas Honda (ATLH) announced its 3QFY16 results in which the company reported net income of Rs755mn (EPS Rs7.3), an increase of 21.4% YoY. Net sales of the company grew by 20.7% YoY to Rs14.2bn in the outgoing quarter owing to robust motorcycle sales, which mainly drove bottom-line growth 
  • Crescent Steel & Allied Products (CSAP) announced its 2QFY16 result. The company reported consolidated profit after tax of Rs309mn (EPS Rs4.2), nearly a two fold increase from same period last year. Sales increased 155% YoY to Rs1.9bn and gross margins improved 15.6ppts to 22.9% in outgoing quarter
  • Fauji twins announced earnings and payouts that were lesser than street expectations
  • EFOOD’s presented stellar Y/Y performance gains, however lower than expected earnings in the 4QCY15 alongside an emphasis on consolidation by the company failed to cheer investors
  • ENGRO and EFERT registered strong advances on excitement ahead of the upcoming results while big ticket financials kept losing steam on reported foreign selling
  • PAEL made a surprise comeback hitting its upper limit on the last trading day of the week driven by chatter of a fresh contract for supply of transformers by FESCO
  • Chevron Pakistan, operating under its Caltex brand, has planned to spend Rs2bn in Pakistan on a lubricant plant over next 3-4 years
  • Massive reduction in power tariff for industrial consumer which rejuvenated hefty interest in Cements and chemical sector in the last trading day
  • Russia indicated that OPEC’s largest producer proposed oil production cuts of up to 5% to help clear a glut of crude and prop up sinking prices
  • The textile group exports fell by 8.93% to USD6.269bn in 1HFY16 as compared to the exports of USD6.884bn in same period of last year
  • Silk Bank decides to streamline its shareholding
  • SBP conducted auction for the sale of PIBs where cut‐off yields for 3yrs, 5yrs and 10yrs paper fell to 6.50% (down 52bps) raising PkR71.1bn, 7.55% (down 45bps) for PkR60.3bn, and 8.85% (down 25bps) worth PkR163.2mn respectively 
  • PESCO board approved procurement of 1,000 transformers from PAEL


Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 90.0
Target Price: PKR 135.00

Attock Petroleum (APL) – BUY 
Current Price: PKR 434.0
Target Price: PKR 626.37

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 26.0
Target Price: PKR 32

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 43.0
Target Price: PKR 68

Cherat Cement (CHCC) – BUY 
Current Price: PKR 97.9
Target Price: PKR 120

DG Khan Cement (DGKC) – BUY 
Current Price: PKR 153.1
Target Price: PKR 237.0

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 79.8
Target Price: PKR 110

ENGRO Foods Limited (EFOODS) – BUY 
Current Price: PKR 141.8
Target Price: PKR 179.4

Engro Corporation (ENGRO) – BUY
Current Price: PKR 265.7
Target Price: PKR 362.00

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 38.0
Target Price: PKR 49

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 112.6
Target Price: PKR 157.6

Fauji Fertilizer Bin Qasim (FFBL) – BUY 
Current Price: PKR 47.9
Target Price: PKR 62

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 171.1
Target Price: PKR 268

Honda Atlas Cars (HCAR) – BUY 
Current Price: PKR 246.7
Target Price: PKR 330.00

Indus Motors (INDU) – BUY 
Current Price: PKR 1,045.10
Target Price: PKR 1,305.0

Kot Addu Power Co (KAPCO) – BUY 
Current Price: PKR 79.0
Target Price: PKR 94

K‐Electric Co. (KEL) – BUY 
Current Price: PKR 7.0
Target Price: PKR 13.7

Lucky Cement (LUCK) – BUY
Current Price: PKR 485.3
Target Price: PKR 652

Pakistan Telecommunication (PTC) – BUY
Current Price: PKR 14.8
Target Price: PKR 21.6

MCB Bank Limited (MCB) – BUY 
Current Price: PKR 192.7
Target Price: PKR 268

Maple Leaf Cement Factor (MLCF) – BUY 
Current Price: PKR 83.1
Target Price: PKR 108.0

National Bank (NBP) – BUY 
Current Price: PKR 52.3
Target Price: PKR 65

Nishat Chun Power (NCPL) – BUY 
Current Price: PKR 53.4
Target Price: PKR 63

Nishat Mills (NML) – BUY 
Current Price: PKR 96.5
Target Price: PKR 121.1

Nishat Power Ltd (NPL) – BUY 
Current Price: PKR 50.3
Target Price: PKR 59

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 109.2
Target Price: PKR 172

Pioneer Cement (PIOC) – BUY 
Current Price: PKR 90.8
Target Price: PKR 105

Pak Oilfields (POL) – BUY 
Current Price: PKR 213.5
Target Price: PKR 348

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 116.8
Target Price: PKR 168

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 502
Target Price: PKR 696

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 326.1
Target Price: PKR 456.8

United Bank Ltd (UBL) – BUY 
Current Price: PKR 143.9
Target Price: PKR 212.00

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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