Pakistan Stock Exchange (PSX) Weekly Analysis 21 Mar, 2016

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

Top gainers of last week were: Allied Rental Mod, Packages Limited, Attock Refinery Ltd., EFU General Ins, The Searle Pak, B.O.Punjab, GlaxoSmithKline Pak., Jubilee Gen Ins, Ghani Glass Ltd and Cherat Cement

Top losers of last week were: Gul Ahmed, Fatima Fert.Co., Habib Metro Bank, Engro Fertilizer, Larpir Power Ltd, Bank AL‐Habib, Arif Habib Corp, Pakgen Power Ltd., Jah.Sidd. Co. and Nestle Pakistan.

Top ten volume leaders: KEL, BOP, FCCL, TRG, OGDC, PAEL, SNGP, ENGRO, CHCC, FATIMA and JSCL.

The Karachi Stock Exchange (KSE) market index swayed like a pendulum around the 33k level with investors getting the taste of both sides, before the index closed the week by gaining marginal 1.26%. The benchmark Karachi Stock Exchange (KSE) 100-share Index gain 411 points, or 1.26 percent, to close the week at 33,080 points. KSE 30-share Index gain 142 points, or 0.74 percent, to end at 19,374 points.

Average daily volumes fell 5% to 166.8mn shares and average daily value dropped 13%to Rs 7.9bn/US$75.0 million over the week.

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

  • Foreign participation failed to sustain last week’s trend (US$4.1mn inflows) where net outflows during the week amounted to US$7.6mn
  • US Fed maintained interest rate policy, while expressing concerns about global economic outlook adopting a dovish stance on future rate hikes, spurring performance in emerging market equities
  • GLAXO announced details of its Sindh High Court approved divestment of its Consumer Health Care operations, with investors getting 10 shares for every 3 shares held in the parent entity
  • HTL expressed its intention to apply for an OMC license from OGRA expanding into the retail fuels segment
  • Auto Policy dominated news reports with conflicting details regarding greater incentives for domestic assemblers
  • NA passed the Futures Market Bill, 2015 and Financial Institutions (Recovery of Finances) (Amendment) Bill, 2015 in a bid to promote investment avenues and facilitate recovery of bank loans
  • Oil & Gas Development Company (OGDC) is seeking international partners as investment destinations, company’s CEO stated in an interview. Company is evaluating Iran and few African countries as potential investment avenues. He also stated that oil production is estimated at 46-50k bpd in the next 12 months while gas output will remain unchanged. OGDC is drilling two development wells in Nashpa 6 and 7 that may add up to 5k bpd. He also hinted that the company will incur higher exploration cost in 2H2016
  • According to a PSX notice, Summit Bank (SMBL) has indicated interest in acquiring majority shareholding of Burj Bank Ltd and has applied to State Bank of Pakistan for permission to conduct due diligence on the matter
  • MoW&P is to add 1500MW electricity to the national grid from Guddu Thermal Power Station by summer 2016. Secretary Water and Power inaugurated an addition of 270MW of electricity to the national grid from Guddu power plant, at Guddu
  • OGRA refuses to support increase in margins of OMCs, dealers
  • MCB announced that it is interested in buying the operations of NIB. According to a filing with the PSX, MCB Bank and Fullerton Financial Holdings Pte Ltd (FFH) were in a preliminary non‐binding discussion on a merger. The FFH is the majority shareholder of NIB Bank through its wholly‐owned subsidiary Bugis Investments (Mauritius) Pte Ltd

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY
Current Price: PKR 87.61
Target Price: PKR 135.00 

Attock Petroleum (APL) – BUY
Current Price: PKR 434.2
Target Price: PKR 626.37

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 24.8
Target Price: PKR 32

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 42.40
Target Price: PKR 68

Cherat Cement (CHCC) – BUY
Current Price: PKR 103.88
Target Price: PKR 120

DG Khan Cement (DGKC) – BUY
Current Price: PKR 167.0
Target Price: PKR 237

ENGRO Fertilizer Limited (EFERT) – BUY
Current Price: PKR 69.6
Target Price: PKR 118

Engro Corporation (ENGRO) – BUY
Current Price: PKR 310.22
Target Price: PKR 362.00

Fatima Fertilizer (FATIMA) – BUY
Current Price: PKR 32.3
Target Price: PKR 49

Fauji Fertilizer Bin Qasim (FFBL) – BUY
Current Price: PKR 51.03
Target Price: PKR 62

Fauji Fertilizer Company (FFC) – BUY
Current Price: PKR 108.7
Target Price: PKR 157.6

Habib Bank Limited (HBL) – BUY
Current Price: PKR 181.7
Target Price: PKR 249.7

Honda Atlas Cars (HCAR) – BUY
Current Price: PKR 239.88
Target Price: PKR 330.00

Indus Motor (INDU) – BUY
Current Price: PKR 973.2
Target Price: PKR 1305

K-Electric (KEL) – BUY
Current Price: PKR 7.1
Target Price: PKR 13.7

Lucky Cement (LUCK) – BUY
Current Price: PKR 532.8
Target Price: PKR 652

MCB Bank Limited (MCB) – BUY
Current Price: PKR 206.63
Target Price: PKR 268

Maple Leaf Cement Factory (MLCF) – BUY
Current Price: PKR 89.0
Target Price: PKR 108

Nishat Chun Power (NCPL) – BUY
Current Price: PKR 50.03
Target Price: PKR 63

Nishat Mills (NML) – BUY
Current Price: PKR 97.0
Target Price: PKR 129.2

Nishat Power Ltd (NPL) – BUY
Current Price: PKR 49.17
Target Price: PKR 59

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 119.1
Target Price: PKR 160

Pak Oilfields (POL) – BUY
Current Price: PKR 263.0
Target Price: PKR 348

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 129.5
Target Price: PKR 168

Pak Suzuki Motors (PSMC) – BUY
Current Price: PKR 436.3
Target Price: PKR 532

Pakistan State Oil (PSO) – BUY
Current Price: PKR 352.5
Target Price: PKR 456

Pakistan Telecommunications (PTC) – BUY
Current Price: PKR 14.9
Target Price: PKR 21.9

United Bank Ltd (UBL) – BUY
Current Price: PKR 153.0
Target Price: PKR 195.7

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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