Karachi Stock Exchange Weekly Analysis 31 May, 2015

The Karachi Stock Exchange (KSE) market remained sluggish during the week as the market lost 433.58pts to close at 32,606 pts. KSE-100 index closed on 3 3,057 by gaining 451 points or 1.38% while KSE-30 index closed on 20,979  by gaining 209 points or 1.00%.

During the week, average daily volumes increased by 71% WoW to 186mn shares while average daily value rose 84% WoW to Rs9.6bn (US$94.1mn). Amongst key sectors, major gains were seen in Media 18%, Tobacco 11%, Paper & Board 10%, Household Goods 7%, Automobile & Parts 7%, General Industrials 4%, and Cement 4%. While major fall was seen in Beverages 5% and Commercial Banks 1%.

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

  • SBP announced a reduction in the policy rate by 100 basis points ‐ from 8% to 7% ‐ and introduced changes in interest rate corridor with a cut from 250 basis points to 200 basis points
  • The KSE‐100 index gained 1.38%WoW to close at 33,057pts because of reduction in DR by 100bps to 7.0%, and extended foreign interest in the market as portfolios re‐aligned according to the changes in weights in the MSCI FM index in its recent semi‐annual review, coming into effect from Jun’15
  • While the 100bps DR reduction was positive for leveraged sectors, banks came under pressure with the introduction of a new target rate, which will further limit their spreads
  • Proposed increase in CGT rates on shares
  • Dairy producers; with a possible shift from zero‐rated taxation to sales tax exempt regime, being negatively impacted (particularly EFOODS), if approved
  • Cements; with PSDP allocation estimated at PkR580bn, where a major chunk will go towards infrastructure projects (PkR132bn allocated to NHA) being beneficial for the sector
  • Nepra cuts PKR1.74/unit tariff for K‐Electric
  • GoP is considering the proposal to reduce import duties on hybrid vehicles to support low fuel consumption and environment in the country. The government had already provided 50 percent duty discount on hybrid vehicles from 1300cc to 2500cc
Top gainers of last week were: Hum Network Ltd, TRG Pakistan Ltd, Pak Tobacco Co., Indus Motor, Maple Leaf Cem., Pak Elektron, Kohinoor Textile, Honda Atlas Cars, Jah.Sidd. Co. and Cherat Cement\

Top losers of last week were: Punjab Oil, Shezan International Ltd, Service Indus, Bank AL‐Habib, National Bank of Pakistan, United Bank, Bank Al‐Falah, Faysal Bank, Allied Bank and Atlas Battery.

Top ten volume leaders: PAEL, FCCL, KEL, MLCF, PTC, BOP, JSCL, DGKC, HUMNL, PIBTL and HBL.

Following are few BUY recommendations:

Lucky Cement (LUCK) – BUY
Current Price: PKR 450.0
Target Price: PKR 552.00

DG Khan Cement (DGKC) – BUY
Current Price: PKR 129.09
Target Price: PKR 162

Cherat Cement (CHCC) - BUY
Current Price: PKR 76.76
Target Price: PKR 95.00 

Engro Corp Limited (ENGRO) – BUY
Current Price: PKR 278.53
Target Price: PKR 338

Engro Fertilizers Limited (EFERT) – BUY
Current Price: PKR 83.9
Target Price: PKR 103.2

Dawood Hercules Limited (DAWH) – BUY
Current Price: PKR 103.9
Target Price: PKR 125.4

Fauji Fert. Bin Qasim Ltd. (FFBL) – BUY
Current Price: PKR 47.8
Target Price: PKR 62.4

Fatima Fertilizer (FATIMA) – BUY
Current Price: PKR 37.3    
Target Price: PKR 50.7

Engro Foods Limited (EFOODS) – BUY
Current Price: PKR 131.9
Target Price: PKR 177.8

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 184.7
Target Price: PKR 256.5 

Pak Oilfields (POL) – BUY
Current Price: PKR 388.1
Target Price: PKR 442.00

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 169.79
Target Price: PKR 221.00

K‐Electric Co. (KEL) – BUY 
Current Price: PKR 7.6
Target Price: PKR 13.3

Pakistan Telecommunication (PTC) – BUY
Current Price: PKR 20.9
Target Price: PKR 25.1

Nishat Mills (NML) – BUY
Current Price: PKR 108.4
Target Price: PKR 168.5 

Nishat Chunian Ltd. (NCL) – BUY 
Current Price: PKR 32.3
Target Price: PKR 45.7 

Allied Bank Limited (ABL) – BUY
Current Price: PKR 101.0
Target Price: PKR 140.0 

National Bank (NBP) – BUY
Current Price: PKR 54.0
Target Price: PKR 72.00

United Bank Ltd (UBL) – BUY
Current Price: PKR 157.9 
Target Price: PKR 194.00

Following are few SELL recommendations:

Hub Power Co (HUBCO) – SELL
Current Price: PKR 97.03
Target Price: PKR 71.00

Nishat Power Ltd (NPL) – SELL
Current Price: PKR 54.63    
Target Price: PKR 38.00

Nishat Chun Power (NCPL) – SELL
Current Price: PKR 60.86   
Target Price: PKR 43 

Pakgen Power Ltd (PKGP) – SELL
Current Price: PKR 29.50
Target Price: PKR 24

Indus Motor (INDU) – SELL
Current Price: PKR 1245.07
Target Price: PKR 1023.00

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

Karachi Stock Exchange Weekly Analysis 24 May, 2015

The Karachi Stock Exchange (KSE) market remained sluggish during the week as the market lost 433.58pts to close at 32,606 pts. KSE-100 index closed on 32,606 by losing -433 points or -1.31% while KSE-30 index closed on 20,770 by losing -276 points or -1.31%.

Average traded volume decline to 109mn shares as compared to 191mn in the past week. Similarly, average traded value decline to US$51mn (down 46.59% WoW). During the week, mutual funds were again the net seller with net outflow of US$24.9mn against an outflow of US$29.5mn in the last week.

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

  • State Bank of Pakistan (SBP) has announced Monetary Policy for next two months. In which State Bank cuts interest rates to historic low (42-year low) of 7%
  • Rumors related to changes in capital gain tax regime and imposition of tax on inward remittances is considered as a major threat
  • LSM growth down by 2.3% in 1HFY15
  • South Africa has imposed provisional anti‐dumping duties of 14.29% to 77.15% on Portland cement, originating in or imported from Pakistan from May 15 for a period of 6‐months. Lucky Cement is subjected to pay 14.29% duty, followed by Bestway 77.15%, DG Khan 68.87%, Attock Pakistan 63.53%, and other cement makers 62.69% 
  • NBP and HBL offered the Punjab government to underwrite project financing, amounting to PKR84bn for its 1,200MW LNG‐based power plant at Bhikki in Sheikhupura
  • ADB projects Pakistan to achieve 4.2% GDP growth in 2015
  • NIT receives PKR3.9bn in Islamic Equity Fund IPO
  • Equity‐oriented schemes are eligible to invest in REITs: SECP
  • In a fresh twist to the LNG saga, the SNGPL has refused to provide gas to UGDC, an umbrella company of CNG stations, and has asked individual gas stations to import the commodity through PSO
  • Car imports surge 35% to USD218.4mn
  • PPL announced discovery of tight gas from exploratory well Rizq‐I in Kirthar Block. The well delivered up to 10.7mmcfd gas
  • Negativity was also brought about by persistent selling from mutual funds amid issuance of guidelines by SECP for CPPI-based mutual funds
  • Government curtails 3.6% budget deficit during Jul-Mar, while Current account deficit falls

Top gainers of last week were: Indus Dyeing, J.D.W.Sugar, Kohinoor Energy, Shezan International Ltd, EFU General Ins, National Refinery, Searle Pak, Abbott Lab, Packages Limited and Punjab Oil.

Top losers of last week were: Ibrahim Fibres, Jah.Sidd. Co., Shifa International Hospitals, Nishat Chunian, B.O.Punjab, Nishat Power Ltd, Honda Atlas Cars, Pakgen Power Ltd., Arif Habib Corp and EFU Life Assur Ltd.

Top ten volume leaders: BOP, PAEL, KEL, EFERT, FATIMA, FCCL, JSCL, PTC, DGKC, PIBTL and HUMNL.

Following are few BUY recommendations:

Pak Suzuki (PSMC) – BUY
Current Price: PKR 408.6
Target Price: PKR 495.00

Lucky Cement (LUCK) – BUY
Current Price: PKR 443.4
Target Price: PKR 552.00

DG Khan Cement (DGKC) – BUY
Current Price: PKR 123.6
Target Price: PKR 162

Cherat Cement (CHCC) - BUY
Current Price: PKR 71.89
Target Price: PKR 95.00 

Fauji Cement (FCCL) - BUY
Current Price: PKR 32.12
Target Price: PKR 37 

Engro Fertilizers Limited (EFERT) – BUY
Current Price: PKR 83.9
Target Price: PKR 103.2

Fauji Fert. Bin Qasim Ltd. (FFBL) – BUY
Current Price: PKR 47.9
Target Price: PKR 62.4

Fatima Fertilizer (FATIMA) – BUY
Current Price: PKR 35.8   
Target Price: PKR 50.7

Engro Corp Limited (ENGRO) – BUY
Current Price: PKR 274.87
Target Price: PKR 338

Engro Foods Limited (EFOODS) – BUY
Current Price: PKR 135.4
Target Price: PKR 177.8

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 185.8
Target Price: PKR 256.5 

Pak Oilfields (POL) – BUY
Current Price: PKR 376.3
Target Price: PKR 442.00

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 170.09
Target Price: PKR 221.00

Attock Petroleum (APL) – BUY
Current Price: PKR 520.00
Target Price: PKR 626

K‐Electric Co. (KEL) – BUY 
Current Price: PKR 7.5
Target Price: PKR 13.3

Pakistan Telecommunication (PTC) – BUY
Current Price: PKR 20.5
Target Price: PKR 25.1

Nishat Mills (NML) – BUY
Current Price: PKR 104.8
Target Price: PKR 168.5 

Nishat Chunian Ltd. (NCL) – BUY 
Current Price: PKR 32.1
Target Price: PKR 45.7 

Allied Bank Limited (ABL) – BUY
Current Price: PKR 104.4
Target Price: PKR 140.0 

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 27.1
Target Price: PKR 39.00

Habib Bank Limited (HBL) – BUY
Current Price: PKR 196.1
Target Price: PKR 255.0  

National Bank (NBP) – BUY
Current Price: PKR 56.9
Target Price: PKR 72.00

United Bank Ltd (UBL) – BUY
Current Price: PKR 165.7
Target Price: PKR 194.00

MCB Bank Ltd (MCB) – BUY
Current Price: PKR 267.73
Target Price: PKR 320.00

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 44.90
Target Price: PKR 68.00

Kot Addu Power Co (KAPCO) – BUY
Current Price: PKR 84.44
Target Price: PKR 97

Following are few SELL recommendations:

Hub Power Co (HUBCO) – SELL
Current Price: PKR 93.29
Target Price: PKR 71.00

Nishat Power Ltd (NPL) – SELL
Current Price: PKR 52.63    
Target Price: PKR 38.00

Nishat Chun Power (NCPL) – SELL
Current Price: PKR 59.88    
Target Price: PKR 43 

Pakgen Power Ltd (PKGP) – SELL
Current Price: PKR 28.65
Target Price: PKR 24

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

Karachi Stock Exchange Weekly Analysis 17 May, 2015

The Karachi Stock Exchange (KSE) market remained in doldrums throughout the week as the market lost 1,236pts at the very first trading day. KSE-100 index closed on 33,039 by losing 491 points or -1.46%.

During the week, average daily volumes increased by 2% WoW to 191mn shares, while the average daily value declined by 9.5% WoW to Rs9.8bn (US$95.8mn). During the outgoing week, local mutual funds were major net sellers of US$29.5mn. While foreigners & locals banks were major net buyers of US$6.1mn and US$15.8mn respectively.

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

  • The week was initiate with news regarding SECP and NAB jointly come together against insider trading within major financial entities
  • Uncertainty on political front owing to polling recount in selective constituencies and the unfortunate shooting incident that claimed several lives
  • Spike in Crude oil prices, regain investor’s confidence in Oil sector coupled with much awaited MSCI review also provide respite to some small cap
  • No major changes for Pakistan in the MSCI index review, Karachi bus attack incident on May 13, 2015 and aggressive selling by local funds dampened market sentiments
  • Cement stocks declined 4% WoW after news on Friday that South African customs union has imposed anti-dumping duty on cement exports from Pakistan. Bestway Cement (BWCL) fell 9% followed by Attock Cement (APCL) 8%, Dewan Cement (DCL) 5%, Fecto Cement (FECTC) 4%, Lucky Cement (LUCK) 4% and DG Khan Cement (DGKC) 4%
  • Automobile stocks fell 3% WoW mainly due to Honda Car (HCAR) which fell by 12% WoW after its full year results announcement. Indus Motors (INDU) also fell by 2.1% while Pak Suzuki Motor (PSMC) fell by 1.3%
  • BYCO emerged as the volume leader (105mn shares) on expectations of major turnaround in profitability of the company. While retail favourites, PAEL (82mn) and KEL (57mn) dominated the volume charts during the week. Average trading volume remained lack luster at 123mn, down 3% WoW
  • Foreigners remained net buyers this week, taking fresh net positions worth USD6.1mn
  • Notable stocks churning the numbers included retail darlings like KEL, JSCL and TRG, while FCCL surrendered to selling pressure shoring a hefty volume in the week
  • MARI, HCAR, NCL and ACPL topped the losers chart in the week while BOP was the only notable name that made it to the top gainers list
  • SNGPL has entered into loan agreement worth PKR17.70bn with a consortium of banks led by BlFL
  • The prime minister approved the appointment of CEO of the EETL as managing director of PSO
  • The government will raise gas prices from July 1, 2015, a senior Petroleum Ministry

Top gainers of last week were: Indus Dyeing, Shezan International Ltd, Pak Tobacco Co., Shifa International Hospitals, B.O.Punjab, J.D.W.Sugar, Bata (Pak) Ltd., EFU Life Assur Ltd., GlaxoSmithKline Pakistan and Muree Brewery Co Ltd.

Top losers of last week were: Mari Petroleum, Honda Atlas Cars, Nishat Chunian, Attock Cement Ltd, Meezan Bank, Feroz 1888 Mills Ltd, Colgate Palmolive, Lucky Cement, Pak Petroleum and United Bank

Top ten volume leaders: PAEL, KEL, FCCL, BOP, TRG, JSCL, EFERT, MLCF, DGKC, PIBTL and PTC.

Following are few BUY recommendations:

Engro Fertilizers Limited (EFERT) – BUY
Current Price: PKR 85.0
Target Price: PKR 103.2

Engro Corp Limited (ENGRO) – BUY
Current Price: PKR 285
Target Price: PKR 338

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 187
Target Price: PKR 256.5 

Pak Oilfields (POL) – BUY
Current Price: PKR 384
Target Price: PKR 442.00

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 172
Target Price: PKR 221.00

Attock Petroleum (APL) – BUY
Current Price: PKR 529
Target Price: PKR 626

Allied Bank Limited (ABL) – BUY
Current Price: PKR 108
Target Price: PKR 140.0 

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 28
Target Price: PKR 39.00

Habib Bank Limited (HBL) – BUY
Current Price: PKR 197
Target Price: PKR 255.0  

National Bank (NBP) – BUY
Current Price: PKR 57
Target Price: PKR 72.00

United Bank Ltd (UBL) – BUY
Current Price: PKR 167
Target Price: PKR 194.00

MCB Bank Ltd (MCB) – BUY
Current Price: PKR 266
Target Price: PKR 320.00

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 45
Target Price: PKR 68.00

Lucky Cement (LUCK) – BUY
Current Price: PKR 455
Target Price: PKR 552.00

DG Khan Cement (DGKC) – BUY
Current Price: PKR 125
Target Price: PKR 162

Cherat Cement (CHCC) - BUY
Current Price: PKR 72
Target Price: PKR 95.00 

Pak Suzuki (PSMC) – BUY
Current Price: PKR 418
Target Price: PKR 495.00

Fauji Fert. Bin Qasim Ltd. (FFBL) – BUY
Current Price: PKR 48
Target Price: PKR 62.4  

Fatima Fertilizer (FATIMA) – BUY
Current Price: PKR 38
Target Price: PKR 50.3 

Engro Foods Limited (EFOODS) – BUY
Current Price: PKR 141
Target Price: PKR 181.1 

K‐Electric Co. (KEL) – BUY 
Current Price: PKR 7.5
Target Price: PKR 13.3

Nishat Mills (NML) – BUY
Current Price: PKR 107.6
Target Price: PKR 168.5 

Nishat Chunian Ltd. (NCL) – BUY 
Current Price: PKR 34.4
Target Price: PKR 45.7 

Following are few SELL recommendations:

Hub Power Co (HUBCO) – SELL
Current Price: PKR 95
Target Price: PKR 71.00

Nishat Power Ltd (NPL) – SELL
Current Price: PKR 57.46   
Target Price: PKR 38.00

Nishat Chun Power (NCPL) – SELL
Current Price: PKR 56
Target Price: PKR 43 

Pakgen Power Ltd (PKGP) – SELL
Current Price: PKR 30
Target Price: PKR 24

Honda Atlas Cars (HCAR) – SELL
Current Price: PKR 227
Target Price: PKR 204.00

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

Karachi Stock Exchange Weekly Analysis 10 May, 2015

The Karachi Stock Exchange (KSE) market extended its corrective phase this week, falling another 0.6% WoW to close at 33,530 points. KSE-100 index closed on 33,530 by losing 200 points or -0.59%. While KSE-30 index closed on 21,580 by losing 94 points or -0.43%.

Activity slowed ahead of MPS/FY16 budget, with ADTO and average daily value traded dropping by 26% and 14% WoW to 187mn shares and US$106mn respectively. Foreigners were net buyers, with US$12.2mn inflow posted this week, down 44% WoW.

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

  • Global oil prices rising to CY15 highs as Brent crossed US$67/bbl closing near US$65/bbl
  • CPI based inflation for Apr’15 clocked in 2.11%YoY vs. 2.49%YoY in Mar’15
  • MoF’s approval of SBP's proposed forced merger of ailing KASB Bank with BankIslami
  • Accumulated debt in the power space surpassing PkR600bn, as the supply shortfall climbs to 4,500MW
  • The FBR has increased sales tax from 18 to 20% on motor spirit excluding HOBC and 32 to 34% on high speed diesel from May 1, 2015
  • POL discovers oil, gas reserves in Tal Block
  • SBP injected PKR716bn into the banking system to cover the widening liquidity gap
  • Engro Powergen will develop a 660MW project, having two plants of 330MW each, utilising Thar lignite coal
  • Budget to be presented on June 5th
  • Pakistan likely to issue US$1bn in Eurobonds in FY16

Top gainers of last week were: Abbott Lab, Shell Pakistan, TRG Pakistan Ltd, Pak Oilfields, Shifa International Hospitals, Honda Atlas Cars, Arif Habib Corp, P.T.C.L.A, Meezan Bank and J.D.W.Sugar.

Top losers of last week were: Bata (Pak) Ltd., B.O.Punjab, Ibrahim Fibres, Service Indus, Thal Limited, Engro Corp, Nishat Chunian Power, Lafarge Pakistan, Jah.Sidd. Co. and Packages Limited.

Top ten volume leaders: KEL, EFERT, PAEL, TRG, FCCL, JSCL, AHCL, PTC, BOP, DGKC and ENGRO.

Following are few BUY recommendations:

Lucky Cement (LUCK) – BUY
Current Price: PKR 476.1
Target Price: PKR 552.00

DG Khan Cement (DGKC) – BUY
Current Price: PKR 130.71
Target Price: PKR 162

Cherat Cement (CHCC) - BUY
Current Price: PKR 72.96
Target Price: PKR 95.00 

Fauji Fert. Bin Qasim Ltd. (FFBL) – BUY
Current Price: PKR 48.4
Target Price: PKR 62.4  

Fatima Fertilizer (FATIMA) – BUY
Current Price: PKR 37.8
Target Price: PKR 50.3 

Engro Fertilizers Limited (EFERT) – BUY
Current Price: PKR 85.27
Target Price: PKR 103.2

Engro Foods Limited (EFOODS) – BUY
Current Price: PKR 145.0
Target Price: PKR 181.1 

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 190.0
Target Price: PKR 256.5 

Pak Oilfields (POL) – BUY
Current Price: PKR 395.1
Target Price: PKR 442.00

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 180.10
Target Price: PKR 221.00

K‐Electric Co. (KEL) – BUY 
Current Price: PKR 7.6
Target Price: PKR 13.3

Nishat Mills (NML) – BUY
Current Price: PKR 110.6
Target Price: PKR 168.5 

Nishat Chunian Ltd. (NCL) – BUY 
Current Price: PKR 37.6
Target Price: PKR 45.7 

Allied Bank Limited (ABL) – BUY
Current Price: PKR 112.5
Target Price: PKR 140.0 

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 29.1
Target Price: PKR 39.00

Habib Bank Limited (HBL) – BUY
Current Price: PKR 200.2
Target Price: PKR 255.0  

National Bank (NBP) – BUY
Current Price: PKR 56.5
Target Price: PKR 72.00

United Bank Ltd (UBL) – BUY
Current Price: PKR 174.6
Target Price: PKR 194.00

MCB Bank Ltd (MCB) – BUY
Current Price: PKR 273.26
Target Price: PKR 320.00

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 46.27
Target Price: PKR 68.00

Pak Suzuki (PSMC) – BUY
Current Price: PKR 423.75
Target Price: PKR 495.00

Following are few SELL recommendations:

Hub Power Co (HUBCO) – SELL
Current Price: PKR 97.84
Target Price: PKR 71.00

Nishat Power Ltd (NPL) – SELL
Current Price: PKR 57.46   
Target Price: PKR 38.00

Nishat Chun Power (NCPL) – SELL
Current Price: PKR 61.93 
Target Price: PKR 43 

Pakgen Power Ltd (PKGP) – SELL
Current Price: PKR 29.83 
Target Price: PKR 24

Honda Atlas Cars (HCAR) – SELL
Current Price: PKR 257.88
Target Price: PKR 204.00

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

Karachi Stock Exchange Weekly Analysis 1 May, 2015

The Karachi Stock Exchange (KSE) market was volatile during the week with half of the trading sessions closing in the red, due to worsening local sentiment. KSE-100 index closed on 33,730 by losing 45 points or -0.13%. While KSE-30 index closed on 21,674 by losing 32 points or -0.15%.

During the week, average daily volumes declined by 23% WoW to 253mn shares, while average daily value fell by 25% WoW to Rs12.6bn (US$123.5mn).

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

  • Positive result surprises include HBL, MCB, due to exceptional NII growth and INDU led by surging margins
  • Amongst top tier banks MCB posted the best results however the stock succumbed to selling pressure
  • Although result expectations were largely positive, there were some big disappointments, notably NBP and PSO
  • ENGRO fell short of expectations while EFERT gathered fresh interest on account of its SPO of 93mn shares through a private placement
  • Engro Corporation (ENGRO) and Engro Fertilizer (EFERT) both remained in limelight during the week, with average daily volume of 7.4mn shares (avg. traded value Rs2.3bn) and 5.3mn shares (avg. traded value Rs458mn), respectively, since private placement of Engro Fertilizer (EFERT) took place on Apr 29-30, 2015
  • The government has increased the minimum pension paid by the EOBI by 46% from PKR3,600 to PKR5,250/month. The increase will be effective from April 1
  • Yamaha invests PKR5.3bn in new plant, eyes 400,000 units by 2020
  • Bank Islami to take over KASB Bank on token value
  • T‐bill auction: Cut‐off yields fall by 54‐56bp
  • Amongst key sectors, major buying was seen in tobacco, life Insurance, automobile, beverages and chemical sectors which went up by 2-8% WoW
  • During the outgoing week, foreigners bought shares valuing US$85.1mn and sold shares worth US$63.5mn with net buying of US$21.6mn
  • Pakistan Petroleum (PPL) has announced a hydrocarbon discovery in Tal Block, located in district Kohat (KPK). The well (Mardankhel-1) produced 2,282bpd of crude oil & 27.04mmcfd gas, with an estimated annualized EPS impact of Rs0.6 (PPL stake 27.8%)

Top gainers of last week were: EFU Life Assur Ltd., Indus Motor, Pak Tobacco Co., Arif Habib Corp, Muree Brewery Co Ltd, Thal Limited, Engro Corp, Pak Suzuki Motor, Service Indus and Jubilee Gen Ins.

Top losers of last week were: Archroma Pakistan, TRG Pakistan Ltd, Atlas Honda Limited, Indus Dyeing, Gul Ahmed, National Foods, National Bank of Pakistan, Soneri Bank, Ghani Gases Ltd and GlaxoSmithKline Pakistan.

Top ten volume leaders: BOP, FABL, FCCL, JSCL, PAEL, ENGRO, KEL, TRG, DGKC, EFERT, and HBL.

Following are few BUY recommendations:

Fauji Fert. Bin Qasim Ltd. (FFBL) – BUY
Current Price: PKR 48.5
Target Price: PKR 62.4  

Fatima Fertilizer (FATIMA) – BUY
Current Price: PKR 37.9
Target Price: PKR 50.3 

Engro Fertilizers Limited (EFERT) – BUY
Current Price: PKR 87.03
Target Price: PKR 103.2 

ENGRO (ENGRO) – BUY
Current Price: PKR 317
Target Price: PKR 400 

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 182.84
Target Price: PKR 256.5 

Pak Oilfields (POL) – BUY
Current Price: PKR 368.93
Target Price: PKR 442.00

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 180.11
Target Price: PKR 221.00

Allied Bank Limited (ABL) – BUY
Current Price: PKR 113.85
Target Price: PKR 140.0 

Habib Bank Limited (HBL) – BUY
Current Price: PKR 200.60
Target Price: PKR 255.0  

MCB Bank Ltd (MCB) – BUY
Current Price: PKR 276.28
Target Price: PKR 320.00

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 29.77
Target Price: PKR 39.00

United Bank Ltd (UBL) – BUY
Current Price: PKR 177.68
Target Price: PKR 194.00

National Bank (NBP) – BUY
Current Price: PKR 57.03
Target Price: PKR 72.00

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 46.75
Target Price: PKR 68.00

DG Khan Cement (DGKC) – BUY
Current Price: PKR 137.36
Target Price: PKR 162

Cherat Cement (CHCC) - BUY
Current Price: PKR 74.62
Target Price: PKR 95.00 

Lucky Cement (LUCK) – BUY
Current Price: PKR 487
Target Price: PKR 552.00

Pak Suzuki (PSMC) – BUY
Current Price: PKR 428.55
Target Price: PKR 495.00

Pakistan Telecommunication (PTC) – BUY
Current Price: PKR 20.8
Target Price: PKR 25.1

Nishat Mills (NML) – BUY
Current Price: PKR 112.3
Target Price: PKR 168.5 

Following are few SELL recommendations:

Hub Power Co (HUBCO) – SELL
Current Price: PKR 97.37
Target Price: PKR 71.00

Nishat Power Ltd (NPL) – SELL
Current Price: PKR 58.87  
Target Price: PKR 38.00

Nishat Chun Power (NCPL) – SELL
Current Price: PKR 66.03
Target Price: PKR 43 

Pakgen Power Ltd (PKGP) – SELL
Current Price: PKR 30.64
Target Price: PKR 24

Honda Atlas Cars (HCAR) – SELL
Current Price: PKR 241.19
Target Price: PKR 204.00

Indus Motor (INDU) – SELL
Current Price: PKR 1214.65
Target Price: PKR 1023.00

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