Pakistan Stock Exchange (PSX) Weekly Analysis 29 Feb, 2016

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

Top gainers of last week were: Ghani Glass Ltd, Associated Services Ltd, Jah.Sidd. Co., Kot Addu Power Co., Oil and Gas Dev., Fauji Fert Bin, Pak Tobacco Co, Muree Brewery Co Ltd, Archroma Pakistan and Fatima Fert.Co.
   
Top losers of last week were: Allied Rental Mod, Orix Leasing, The Searle Pak, Mari Petroleum, Adamjee Ins, J.D.W.Sugar, Nestle Pakistan, Thal Limited, Millat Tractors and Faysal Bank.

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

The Karachi Stock Exchange (KSE) market sentiments remained volatile during the week due to uncertainties and lack of triggers in the market. The benchmark Karachi Stock Exchange (KSE) 100-share Index gain 282 points or 0.91 percent, to close the week at 31,294 points. While Karachi Stock Exchange (KSE) 30-share Index lost 225 points or 1.25 percent, to close the week at 18,296 points

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


  • Minister’s confirmation of 400mmcfd LNG supply from next month (March-16)
  • With result season approaching end, KSE-100 seems to be lacking triggers with utmost of the focus tilted towards foreign outflows and volatile crude prices
  • Army Chief’s orders to execute final phase of operation Zarb-e-Azb
  • Negative news abound as politicians locked horns over Euro bond sale and the government’s alleged role in inflating demand for the issue, prompting the ministry to contact the financial advisor of money transfer details
  • Continuation of shrinkage in banking spreads to 5.12% in Jan-2016
  • Likely cut of Rs200bn in PSDP
  • Release of CAD numbers (down 23% YoY US$2.036bn in 7MFY16)
  • In banking sphere, HBL and FABL results and payouts were majorly in line with the market consensus
  • KAPCO piled on gains for four consecutive sessions after above expectations bottom line growth
  • LUCK underwent a beating despite earnings as per street estimates
  • Hydro power project's cost increased by 378%
  • Pharmaceutical companies have refused to meet Minister of National Health Services Regulation and Coordination Saira Afzal Tarar, while the minister said that pharmaceutical companies can't blackmail the government 
  • K‐Electric plans to add 100MW electricity to grid
  • Government considers withdrawing import duty on fine yarn
  • Pakistanis purchased 6,106 properties during 2015 as compared to 5,079 units last year, an increase of 20%. Around AED 8bn (USD2.178bn) worth of properties were purchased by Pakistanis during the year as compared to AED 7.588bn (USD2.066bn) last year, up 5.43% 
  • Foreigners sold US$4.8mn (net) during the week as compared to net selling of US$13.2mn in the past week
  • Following the previous week meeting between leading OPEC member Saudi Arabia and non-OPEC member Russia, the two other heavy oil producers Qatar and Venezuela also agreed to freeze output at January levels
  • Country’s textile exports declined by over 9% during 7MFY16 to stand at US$7.34bn vis a vis US$8.09bn past year
  • Leading auto manufacturer Honda Atlas Cars (Pakistan) Limited opting to delay the introduction of the 2016 Honda Civic
  • Zameen.com, a property portal in Pakistan, has launched a property index, the first in the country and in the South Asian region. The index provides real-time prices with regards to per square-foot rates of properties in Karachi, Lahore, Islamabad, Faisalabad and Rawalpindi
  • Cut‐off yields on the PIBs were slashed by up to 60bps, while the GoP raised PkR152bn against the target of PkR50bn, 3yr, 5yr and 10yr bonds cutoff yields fell by 13bps to 6.34%, 43bps to 7.04% and 60bps to 8.25% respectively
  • SBP allowed Pakistani banks to restore normal financial relations with Iran in the wake of lifting of ban on Tehran by the United Nations Security Council


Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 84.7
Target Price: PKR 135.00

Attock Petroleum (APL) – BUY 
Current Price: PKR 420.0
Target Price: PKR 626.37

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 26.66
Target Price: PKR 32

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 44.48
Target Price: PKR 68

Cherat Cement (CHCC) – BUY 
Current Price: PKR 90.62
Target Price: PKR 120

DG Khan Cement (DGCC) – BUY 
Current Price: PKR 156.2
Target Price: PKR 237

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 72.4
Target Price: PKR 110

ENGRO Foods Limited (EFOODS) – BUY 
Current Price: PKR 122.9
Target Price: PKR 152.1

Engro Corporation (ENGRO) – BUY
Current Price: PKR 274.92
Target Price: PKR 362.00

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 36.2
Target Price: PKR 49

Fauji Fertilizer Bin Qasim (FFBL) – BUY 
Current Price: PKR 49.33
Target Price: PKR 62

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 107.2
Target Price: PKR 125.58

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 183.5
Target Price: PKR 268

Honda Atlas Cars (HCAR) – BUY 
Current Price: PKR 244.10
Target Price: PKR 330.00

Indus Motors (INDU) – BUY 
Current Price: PKR 949.4
Target Price: PKR 1124

K‐Electric Co. (KEL) – BUY 
Current Price: PKR 6.8
Target Price: PKR 13.0

Lucky Cement (LUCK) – BUY
Current Price: PKR 471.8
Target Price: PKR 652

MCB Bank Limited (MCB) – BUY 
Current Price: PKR 197.4
Target Price: PKR 268

Maple Leaf Cement Factory (MLCF) – BUY 
Current Price: PKR 80.0
Target Price: PKR 108.00

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

Nishat Mills (NML) – BUY 
Current Price: PKR 91.2
Target Price: PKR 121

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 107.4
Target Price: PKR 172.00

Pioneer Cement (PIOC) – BUY 
Current Price: PKR 83.48
Target Price: PKR 105

Pak Oilfields (POL) – BUY 
Current Price: PKR 325.2
Target Price: PKR 348

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 116.5
Target Price: PKR 168.8

Pak State Oil (PSO) – BUY 
Current Price: PKR 325.2
Target Price: PKR 450

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 418.06
Target Price: PKR 532

Pakistan Telecommunication (PTC) – BUY 
Current Price: PKR 13.8
Target Price: PKR 21.0

United Bank Ltd (UBL) – BUY 
Current Price: PKR 151.6
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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