Pakistan Stock Exchange (PSX) Weekly Analysis 7 Mar, 2016

BUY recommendations are ABL, APL, BAFL, BAHL, CHCC, DGCC, EFERT, 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: Engro Foods Ltd, Mari Petroleum, Lucky Cement, Maple Leaf Cem.,  Pak Suzuki Motor, Engro Corp, EFU General Ins, Arif Habib Corp, Stand.Chart.Bank, Kohat Cement.
   
Top losers of last week were: Hum Network Ltd, Larpir Power Ltd, Punjab Oil, IGI Insurance, Fauji Fert Bin, Shifa International Hospitals, Orix Leasing, Kot Addu Power Co., Meezan Bank and Muree Brewery Co Ltd.

Top ten volume leaders: TRG, JSCL, PAEL, FCCL, ENGRO, OGDC, DGKC, EFERT, MLCF, KEL and SNGP.

The Karachi Stock Exchange (KSE) market Bulls welcomed the new month with strong bounce back which brushed aside negativity which had persisted throughout the month of Feb-15. The benchmark Karachi Stock Exchange (KSE) 100-share Index gain 1148 points or 3.67 percent, to close the week at 32,442 points. While Karachi Stock Exchange (KSE) 30-share Index lost 875 points or 4.78 percent, to close the week at 19,171 points.

Average daily volumes fell slightly by 2.3% and were recorded at to 135 million shares traded per day. On the other hand, average daily values picked up sharply by 31.2% and were recorded at Rs8.17 billion per day. The Pakistan Stock Exchange’s market capitalization stood at Rs6.80 trillion ($64.9 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:


  • The exchange traced global markets, which consolidated gains after strong manufacturing data from the United States. This also helped crude oil prices hit a two-month high. Brent Crude Oil traded above $37 on Friday
  • Interest of institutional investors in banking sector stocks resulted in the scrips increasing in today’s trading. MCB Bank (MCB), Habib Bank (HBL) and United Bank (UBL) increased 1.7-3.0% toady
  • Engro Corporation (ENGRO) and Engro Foods (EFOODS) closed at their upper limits (up 5%) after ENGRO notified the exchange that it has received an offer from Friesman Campina International Holding BV to acquire up to 51% of voting shares of EFOODS
  • According to the auction schedule released by State Bank of Pakistan (SBP) for the month of March-May, central bank plans to raise Rs1.3bn through T-Bills and Rs175mn through Pakistan Investment Bonds (PIB)
  • As per news reports, a Chinese company has expressed interest in establishing a steel mill with a capacity of one million tons in Punjab. Ansteel International Trading Company met with Punjab Board of Investment & Trade to discuss the potential investment opportunity
  • CPI inflation during Feb'16 stood at 4.02% YoY higher than 3.32%YoY for Jan'16 owing to the low base effect despite a sequential decline of 0.25%MoM
  • SNGPL announced to start supplying gas to the textile industry in Punjab from Mar'16 on 24/7 basis at a cost of US$6.66/mmbtu instead of US$9.8/mmbtu
  • Highest ever monthly cut in power tariff of Rs4.11/unit on account of Fuel Price Adjustment
  • PM approved OGRA recommended cut in petroleum products' prices in the range of Rs1.97 to Rs8.48 per litre w.e.f. March 1, 2016
  • Major results were announced in preceding month where Cements won the hearts of the investors
  • Pakistan’s Byco Petroleum Pakistan Limited is planning to lay off hundreds of employees to reduce costs due to the global plunge in oil prices and shrinking profits
  • KEL has signed an agreement with a Korean firm to improve its transmission network in the city
  • Foreigners sold US1.6mn during the week as compared to net selling of US$4.8mn in the past week


Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 86.0
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 27
Target Price: PKR 32

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 45
Target Price: PKR 68

Cherat Cement (CHCC) – BUY 
Current Price: PKR 92
Target Price: PKR 120

DG Khan Cement (DGKC) – BUY 
Current Price: PKR 163.7
Target Price: PKR 237

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 76
Target Price: PKR 110

Engro Corporation (ENGRO) – BUY
Current Price: PKR 297
Target Price: PKR 362.00

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 36.1
Target Price: PKR 49

Fauji Fertilizer Bin Qasim (FFBL) – BUY 
Current Price: PKR 47
Target Price: PKR 62

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 110.3
Target Price: PKR 125.58

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 187.4
Target Price: PKR 268

Honda Atlas Cars (HCAR) – BUY 
Current Price: PKR 256
Target Price: PKR 330.00

Indus Motors (INDU) – BUY 
Current Price: PKR 979.8
Target Price: PKR 1124

Kot Addu Power Co (KAPCO) – BUY
Current Price: PKR 80
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 513
Target Price: PKR 652

MCB Bank Limited (MCB) – BUY 
Current Price: PKR 201
Target Price: PKR 268

Maple Leaf Cement Factory (MLCF) – BUY 
Current Price: PKR 86.8
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 94.8
Target Price: PKR 121

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 112.8
Target Price: PKR 172.00

Pioneer Cement (PIOC) – BUY 
Current Price: PKR 87
Target Price: PKR 105

Pak Oilfields (POL) – BUY 
Current Price: PKR 250.8
Target Price: PKR 348

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 118.7
Target Price: PKR 168.8

Pak State Oil (PSO) – BUY 
Current Price: PKR 344.8
Target Price: PKR 450

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 450.8
Target Price: PKR 532

Pakistan Telecommunication (PTC) – BUY 
Current Price: PKR 13.9
Target Price: PKR 21.0

United Bank Ltd (UBL) – BUY 
Current Price: PKR 156.7
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

1 comment:

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