Pakistan Stock Exchange (PSX) Weekly Analysis 15 Feb, 2016

BUY recommendations are ABL, APL, BAFL, BAHL, CHCC, DGCC, EFERT, EFOODS, ENGRO, FATIMA, FFBL, FFC, HBL, HCAR, INDU, KAPCO, KEL, LUCK, MCB, MLCF, NBP, NCPL, NML, NCL, OGDC, PIOC, POL, PPL, PSO, PSMC, PTC and UBL.

Top gainers of last week were: Jah.Sidd. Co., Ghani Glass Ltd, Pak Oilfields, Sui North Gas Pipe., EFU Life Assur Ltd., Jubilee Gen Ins, Punjab Oil, EFU General Ins, Nishat Power Ltd and Dawood Hercules Chem.
   
Top losers of last week were: Kohinoor Textile, Ferozsons (Lab), Pak Suzuki Motor, Pak Elektron, Rafhan Maize Prod., Nishat Chunian, Oil and Gas Deve, Fatima Fert.Co., Attock Cement Ltd and Honda Atlas Cars.

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

The Karachi Stock Exchange (KSE) market witnessed remained under pressure due to continuous foreign selling coupled with declining regional markets. The benchmark Karachi Stock Exchange (KSE) 100-share Index lost -1015 points or -3.12 percent, to close the week at 31,464 points. While Karachi Stock Exchange (KSE) 30-share Index lost -650 points or -3.42 percent, to close the week at 18,363 points

Average daily volumes fell 2.4% to 140.8 million shares traded per day, while average daily values also fell 6.5% to Rs7.98 billion per day. The Pakistan Stock Exchange’s market capitalization stood at Rs6.66 trillion ($63.6 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:


  • Oil prices continued to be extremely volatile and fell to $26.21 per barrel after approaching the mid-30s in the previous week
  • With profit-taking in the banking sector and negative news flows for the cement and fertilizer sectors, there was little reason for investors to cheer
  • The only positive of the week was the signing of the LNG deal with Qatar, which will see shipments start in March 2016 and contribute significantly towards the energy security of the country
  • The sharp decline saw the Oil and Gas sector fall 4.8% during the week
  • A notable exception was Pakistan Oilfields Limited which rose 7.4% during the week after beating expectations with its earnings and dividend payout
  • The banking sector suffered from profit-taking and fell 3% during the week while the cement sector (down 4.8%) and the fertilizer sector (down 3.6%) also fell as a result of pricing power erosion for manufacturers in both sectors
  • Household Goods and Financial Services were among the top gainers on a sector level, rising 3.3% and 3.0%, respectively. Beverages, Automobile & Parts and Oil & Gas were among the major losers over the week as they fell 6.1%, 5.6% and 4.8%, respectively
  • Foreign selling continued unabated with foreigners offloading a net of $17.3 million worth of equity during the week
  • The privatization debacle of national carrier PIA was pushed forward as government delayed the intended sale for six months, leading to an end to the employee strike
  • EFERT’s posted profit and payout were above street estimates but gas supply ambiguity and slide in international urea prices clouded the outlook as the scrip lost 6% during the week
  • In the telecom sector, PTC’s dividend sparked interest in the scrip with stout earnings
  • Standard Chartered Bank Pakistan is going to ‘double businesses in the country. Standard Chartered is one of the major and longest operating banks in Pakistan
  • Leading organizations including PSM, FFC, PSO and Bahria Foundation have grabbed top positions in the list of property tax defaulters of more than PKR 4bn. PSM has to clear off PKR1363.140mn outstanding dues of property tax, while FFC PKR436.80mn, PSO PKR76.520mn and Bahria Foundation PKR 23.61mn  
  • Cherat Cement (CHCC) announced 2QFY16 results in which the company reported net income of Rs408mn (EPS Rs2.3), showing an increase of 4.9% YoY
  • Central Development Working Party (CDWP) approved provision of a coal conveyor system from Pakistan International Bulk Terminal (PIBTL) to railway network at Port Qasim at a cost of Rs15.9bn. This has been recommended to the Executive Committee of National Economic Council (Ecnec) for approval. Coal will be transported to the proposed coal-fired power plants 
  • The Drug Regulatory Authority of Pakistan (DRAP) authorized 11 pharmaceutical companies for sale of generic version of Hepatitis‐C drug Sofosbuvir to be available at PkR5,868/pack (28 tablets),
  • Balochistan government announced lift‐off of the ban on new projects of oil and gas exploration across the province and started negotiations with PPL, OGDCL and some international exploration companies


Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 88.31
Target Price: PKR 135.00

Attock Petroleum (APL) – BUY 
Current Price: PKR 430.29
Target Price: PKR 626.37

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 26.92
Target Price: PKR 32

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 43.98
Target Price: PKR 68

Cherat Cement (CHCC) – BUY 
Current Price: PKR 91.62
Target Price: PKR 120

DG Khan Cement (DGCC) – BUY 
Current Price: PKR 152.7
Target Price: PKR 237

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 76.24
Target Price: PKR 110

ENGRO Foods Limited (EFOODS) – BUY 
Current Price: PKR 137.9
Target Price: PKR 179.4

Engro Corporation (ENGRO) – BUY
Current Price: PKR 265.50
Target Price: PKR 362.00

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 34.92
Target Price: PKR 49

Fauji Fertilizer Bin Qasim (FFBL) – BUY 
Current Price: PKR 47.31
Target Price: PKR 62

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 108.78
Target Price: PKR 125.58

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 185.01
Target Price: PKR 268

Honda Atlas Cars (HCAR) – BUY 
Current Price: PKR 259.84
Target Price: PKR 330.00

Indus Motors (INDU) – BUY 
Current Price: PKR 998.3
Target Price: PKR 1305.00

Kot Addu Power Co (KAPCO) – BUY 
Current Price: PKR 79.38
Target Price: PKR 94

K‐Electric Co. (KEL) – BUY 
Current Price: PKR 6.9
Target Price: PKR 13.7

Lucky Cement (LUCK) – BUY
Current Price: PKR 495.32
Target Price: PKR 652

MCB Bank Limited (MCB) – BUY 
Current Price: PKR 194.15
Target Price: PKR 268

Maple Leaf Cement Factory (MLCF) – BUY 
Current Price: PKR 80.3
Target Price: PKR 108.00

National Bank (NBP) – BUY 
Current Price: PKR 53.56
Target Price: PKR 65

Nishat Chun Power (NCPL) – BUY 
Current Price: PKR 53.02
Target Price: PKR 63

Nishat Mills (NML) – BUY 
Current Price: PKR 92.0
Target Price: PKR 121

Nishat Chunian Ltd. (NCL) – BUY 
Current Price: PKR 35.0
Target Price: PKR 45.7

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 101.96
Target Price: PKR 172.00

Pioneer Cement (PIOC) – BUY 
Current Price: PKR 86.63
Target Price: PKR 105

Pak Oilfields (POL) – BUY 
Current Price: PKR 238.45
Target Price: PKR 348

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 112.90
Target Price: PKR 168.8

Pak State Oil (PSO) – BUY 
Current Price: PKR 332.4
Target Price: PKR 456

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 468.5
Target Price: PKR 696

Pakistan Telecommunication (PTC) – BUY 
Current Price: PKR 14.7
Target Price: PKR 21.6

United Bank Ltd (UBL) – BUY 
Current Price: PKR 151.08
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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