Pakistan Stock Exchange (PSX) Weekly Analysis 20 Feb, 2016

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

Top gainers of last week were: J.D.W.Sugar, EFU General Ins, Muree Brewery Co Ltd, National Bank of Pak, Gul Ahmed, Ibrahim Fibres, Shifa International Hospitals, Abbott Lab, Service Indus, and Nishat Power Ltd.
   
Top losers of last week were: Sui South Gas, Jah.Sidd. Co., Ghani Glass Ltd, Allied Rental Mod, Engro Fertilizer, Engro Foods Ltd, Ferozsons (Lab), Pak Suzuki Motor, Archroma Pakistan and Mari Petroleum.

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

The Karachi Stock Exchange (KSE) market during the week declined by 1.4% to 31,012 index level as foreign selling continued and December quarter results failed to excite investor sentiment. The benchmark Karachi Stock Exchange (KSE) 100-share Index lost -452 points or -1.44 percent, to close the week at 31,012 points. While Karachi Stock Exchange (KSE) 30-share Index lost -292 points or -1.59 percent, to close the week at 18,071 points

Key trading activities remained dull resulting in 12% WoW decline in average traded volumes to 124mn shares/day. Similarly, average traded value followed the same path and went down by 17%WoW to US$63mn. As far as FIPI is concerned, foreigners sold US$13.2mn (net) during the week as compared to net selling of US$17.3mn in the past week.

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


  • Foreigners were net sellers of US$13.2mn during the week
  • Oil prices played hide and seek throughout the week as Saudi Arabia and Russa agreed to freeze output at current levels while Iran joined in to support this arrangement
  • Earnings announcements in the cement space were the sole out‐performers from an otherwise slew of flattish to slightly below expected results from amongst banking, oil and gas, power and fertilizer sectors
  • HUBC churned steady interest during the week on approval of its coal power tariff
  • KEL saw some value hunting on account of earnings excitement
  • ENGRO’s result was slightly below estimates but its surprise intimation to offload 24% stake of its fertilizer subsidiary through a private placement unleashed a bearish spell on EFERT, while the parents stock rallied on expectations of a large one‐time gain
  • Engro Corporation has appointed advisors to sell up to 24% shares of its subsidiary (EFERT) to any local and international investors
  • A heated war of words between NAB and GoP functionaries during the later half of the week incited renewed fears amongst the business community making an already jittery bourse lose further steam
  • NEPRA grants tariff for 1,320MW coal power plants
  • Textile sector’s borrowing surges to PKR 83 billion
  • The export of beef to UAE has reached USD43.61mn during 2014‐15, registering 24% increase as compared to the previous year
  • PKR 8.12/unit tariff approved for Hubco’s power project
  • Government of Pakistan eyes 2,160MW from Dasu hydropower project by 2021
  • Sitara Chemical Industries (SITC) announced 2QFY16 result in which company reported earnings of Rs215mn (EPS Rs10.1), showing an increase of 5% YoY
  • NBP announced 4Q2015 consolidated earnings of Rs8.6bn (EPS Rs4.1) as compared to Rs3.8bn (EPS Rs1.8) in the same period last year, led by impressive 43% growth in Net Interest Income (NII) and 67% drop in provisioning expense. Alongside the results, NBP also announced final cash dividend of Rs7.5/share
  • PM announces zero-rated tax regime for export sector
  • Forex reserves up by $192 million


Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 86.50
Target Price: PKR 135.00

Attock Petroleum (APL) – BUY 
Current Price: PKR 430.00
Target Price: PKR 626.37

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 26.69
Target Price: PKR 32

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 44.20
Target Price: PKR 68

Cherat Cement (CHCC) – BUY 
Current Price: PKR 91.09
Target Price: PKR 120

DG Khan Cement (DGCC) – BUY 
Current Price: PKR 150.8
Target Price: PKR 237

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 69.09
Target Price: PKR 110

ENGRO Foods Limited (EFOODS) – BUY 
Current Price: PKR 125.1
Target Price: PKR 152.1

Engro Corporation (ENGRO) – BUY
Current Price: PKR 266.11
Target Price: PKR 362.00

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 34.41
Target Price: PKR 49

Fauji Fertilizer Bin Qasim (FFBL) – BUY 
Current Price: PKR 46.34
Target Price: PKR 62

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 105.89
Target Price: PKR 125.58

Hascol (HASCOL) – BUY 
Current Price: PKR 135
Target Price: PKR 150

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 183.61
Target Price: PKR 268

Honda Atlas Cars (HCAR) – BUY 
Current Price: PKR 245.95
Target Price: PKR 330.00

Indus Motors (INDU) – BUY 
Current Price: PKR 971.27
Target Price: PKR 1124

Kot Addu Power Co (KAPCO) – BUY 
Current Price: PKR 75.55
Target Price: PKR 94

K‐Electric Co. (KEL) – BUY 
Current Price: PKR 6.9
Target Price: PKR 13.0

Lucky Cement (LUCK) – BUY
Current Price: PKR 477.04
Target Price: PKR 652

MCB Bank Limited (MCB) – BUY 
Current Price: PKR 191.84
Target Price: PKR 268

Maple Leaf Cement Factory (MLCF) – BUY 
Current Price: PKR 79.6
Target Price: PKR 108.00

National Bank (NBP) – BUY 
Current Price: PKR 57.5
Target Price: PKR 65

Nishat Chunian Ltd. (NCL) – BUY 
Current Price: PKR 34.2
Target Price: PKR 45.7

Nishat Chun Power (NCPL) – BUY 
Current Price: PKR 53.00
Target Price: PKR 63

Nishat Mills (NML) – BUY 
Current Price: PKR 89.0
Target Price: PKR 121

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 100.20
Target Price: PKR 172.00

Pioneer Cement (PIOC) – BUY 
Current Price: PKR 85.18
Target Price: PKR 105

Pakgen Power Limited (PKGP) – BUY 
Current Price: PKR 27.5
Target Price: PKR 41

Pak Oilfields (POL) – BUY 
Current Price: PKR 239.75
Target Price: PKR 348

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 114.23
Target Price: PKR 168.8

Pak State Oil (PSO) – BUY 
Current Price: PKR 335
Target Price: PKR 450

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 430.30
Target Price: PKR 532

Pakistan Telecommunication (PTC) – BUY 
Current Price: PKR 14.7
Target Price: PKR 21.0

United Bank Ltd (UBL) – BUY 
Current Price: PKR 150.40
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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