Karachi Stock Exchange Weekly Analysis 27 Sep, 2015

BUY recommendations are PSMC, HCAR, INDU, FFC, EFERT, FATIMA, ENGRO, OGDC, POL, PPL, PSO, APL, NML, ABL, NBP, UBL, HBL, BAFL, BAHL, DGKC, LUCK, MLCF, FCCL and KOHC

Top gainers of last week were: Searle Pak, Bata (Pak) Ltd., Cherat Cement, Sui South Gas, Jubilee Gen Ins, J.D.W.Sugar, TRG Pakistan Ltd, Indus Dyeing, Service Indus and International Steels Ltd.
   
Top losers of last week were: Punjab Oil, Orix Leasing, Indus Motor, Stand.Chart.Bank, Oil and Gas Deve, Shezan International Ltd, Allied Bank, Gul Ahmed, Pakgen Power Ltd. and Millat Tractors.

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

The Karachi Stock Exchange (KSE) market observed a somber activity this week due to absence of triggers. The benchmark Karachi Stock Exchange (KSE) 100-share Index gained 61.89 points, or 0.19 percent, to close the week at 32,822.84 points. KSE 30-share Index shed 44.12 points, or 0.22 percent, to end at 19,661.50 points.

The market remained dull in a shortened trading week as upcoming Eid Holidays negatively impacted volumes. An average daily turnover was down 8.0 percent to 124 million per day. On the overseas front, foreign portfolio investment numbers for the week showed a net selling of $1.1 million.

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

  • Foreign investors remained bullish on banks during the week, while selling was seen in the chemicals sector
  • Lack of optimism due to fears of NAB’s (National Accountability Bureau) investigations against high profile industrialists and brokers continued to hamper market performance despite upbeat corporate valuations
  • In the local market, the only cheerful news was the earnings by DG Khan Cement, which set forth a rally in other cement stocks; but it was short-lived
  • Current account deficit recorded at 0.8 percent of gross domestic product for the first two months of the fiscal year 2015/16, compared to 3.2 percent in same period last year
  • Textile exports rose 8.3 percent in August, despite lower cotton prices in the international market
  • Large scale manufacturing posted 4.7 percent growth in July 2015, compared to last year, with autos, fertilizers and chemicals among the top growing sectors
  • The latest Asian Development Bank’s report painted a mixed picture of the economy, acknowledging the prospect of growth picking up to 4.5 percent
  • Asian markets remained volatile on continued worries about Chinese economy
  • Major gain was seen in sectors such as Technology Hardware and Equipment (4.7%) and Support Services (4.3%), and Real Estate Investment and Services (4.2%) while major losers were Electronic and Electrical Goods (2.8%) Oil and Gas (2.5%) and Automobile and Parts (2.1%)
  • According to the latest data released by State bank of Pakistan (SBP), banking spread improved by 4bps to 5.51% due to decline in cost of deposits. On YoY basis, spreads were down by 20bps due to falling interest rates. The spreads are anticipated to come down post cut in policy rate in Sep 2015 however major investment in PIBs (~30% of deposits) will provide some support to sector margins in 2015
  • Avanceon (AVN) through its wholly owned subsidiary Avanceon FZE UAE, (Avanceon Group) has entered into firm contracts of US$5.1mn with various clients in Qatar and Saudi Arabia (KSA) regions as per a KSE notice
  • IMF has warned that a moderate pick‐up in inflation is expected in Pakistan in coming months as international energy prices stabilize
  • Mari Petroleum announced on Friday to have discovered reserves of crude oil, condensate and natural gas in its Karak Block’s Kalabagh Well in Mianwali
  • ADB to give $200m for public‐private partnership
  • In the light of new auto policy, a plan for launching passenger cars in Pakistan by Nissan and Renault was discussed at a meeting held between the officials of EDB, BoI and automobile manufacturers
  • PSMC has launched its Inazuma Aegis bike, a locally assembled motorcycle that is exclusively designed for Pakistan’s security institutions

Following are few BUY recommendations:

Pak Suzuki Motors (PSMC) – BUY
Current Price: PKR 418.21
Target Price: PKR 542

Honda Atlas Cars (HCAR) – BUY
Current Price: PKR 224.36
Target Price: PKR 324.00

Indus Motor (INDU) – BUY
Current Price: PKR 1025.00
Target Price: PKR 1293.99

Fauji Fertilizer Company (FFC) – BUY
Current Price: PKR 125.00
Target Price: PKR 163.5

ENGRO Fertilizer Limited (EFERT) – BUY
Current Price: PKR 92.27
Target Price: PKR 118.7

Fatima Fertilizer (FATIMA) – BUY
Current Price: PKR 45.99
Target Price: PKR 58.9

Engro Corporation (ENGRO) – BUY
Current Price: PKR 305.79
Target Price: PKR 362.00

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 128.04
Target Price: PKR 212.00

Pak Oilfields (POL) – BUY
Current Price: PKR 300.29
Target Price: PKR 423.0

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 119.59
Target Price: PKR 193.8

Pakistan State Oil (PSO) – BUY
Current Price: PKR 292
Target Price: PKR 493

Attock Petroleum (APL) – BUY
Current Price: PKR 520.00
Target Price: PKR 626.37

Nishat Mills (NML) – BUY
Current Price: PKR 100
Target Price: PKR 168.5

Allied Bank Limited (ABL) – BUY
Current Price: PKR 94.95
Target Price: PKR 135.00

National Bank (NBP) – BUY
Current Price: PKR 52.12
Target Price: PKR 69.0

United Bank Ltd (UBL) – BUY
Current Price: PKR 153.60
Target Price: PKR 194.00

Habib Bank Limited (HBL) – BUY
Current Price: PKR 204.71
Target Price: PKR 270

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 25.90
Target Price: PKR 34

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 42.09
Target Price: PKR 68

Dera Ghazi Khan Cement (DGKC) – BUY
Current Price: PKR 138.14
Target Price: PKR 176

Lucky Cement (LUCK) – BUY
Current Price: PKR 534.51
Target Price: PKR 665

Maple Leaf Cement (MLCF) – BUY
Current Price: PKR 66.54
Target Price: PKR 79.05

Fauji Cement (FCCL) – BUY
Current Price: PKR 34.16
Target Price: PKR 39.50

Kohat Cement (KOHC) – BUY
Current Price: PKR 199
Target Price: PKR 268

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 20 Sep, 2015

BUY recommendations are PSMC, HCAR, INDU, FFC, EFERT, FATIMA, ENGRO, OGDC, POL, PPL, PSO, NML, ABL, NBP, UBL, HBL, BAFL, BAHL, DGKC, LUCK, MLCF, KOHC and CHCC.

Top gainers of last week were: Punjab Oil, Indus Dyeing, Pioneer Cement, Colgate Palmolive, Kot Addu Power Co., Atlas Honda Limited, Millat Tractors, Jubilee Life Ins, Pak Tobacco Co. and Dawood Hercules Chem.
    
Top losers of last week were: Service Indus, Ibrahim Fibres, Pak Elektron, TRG Pakistan Ltd, Gul Ahmed, MCB Bank Ltd, Sui South Gas, Pak Petroleum, Habib Bank Ltd and Bannu Woollen.

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

The Karachi Stock Exchange (KSE) market remained lackluster with directionless trading seen throughout most of the outgoing week. KSE-100 index closed on 32,760.95 by losing -912 points or -2.71%.

Average traded volumes during the week declined to 135mn shares vs 206mn shares in the past week (down 34% WoW).

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

  • Local bourses felt immense pressure with lower volumes owing to militant’s attack on Peshawar Air Base
  • The central bank’s decision to slash DR by a further 50bps on account of lower inflation expectations turned out to be a non‐event
  • An uptick in international crude gave a fresh lease of life to the index heavy E&P sector, while momentary excitement in cements on the back of lower international coal prices was nullified by selling pressure towards the week’s close
  • The last bit of the result season will be over in the upcoming week as DGKC unveils its earnings, while that of KOHC and PIOC failed in creating a meaningful stir
  • The next week is likely to be overshadowed by shortened proceedings due to long weekend which is likely to keep the overall level of activity very limited
  • Nawaz Sharif announced a reduction in prices of electricity by Rs 2.19 per unit
  • Oil ministry says it authorized LNG imports from Qatar
  • MoF plans to raise $500 million through issuance of Eurobonds
  • Investors show interest in buying Engro Polymer
  • SBP injects Rs61.9bln into money market
  • Bank deposits fall by Rs121 billion in two months
  • Nawaz Sharif has announced a Rs 341 billion relief package for farmers with a direct cash assistance to rice and cotton growers, subsidy on fertilizer and electricity and tax relief on import of machinery
  • SBP allows Rs 1.5 billion financing for Power Company
  • OGDC has announced a 5.10mmcfd gas discovery from Ardin Well‐I in Khewari Block, Sindh

Following are few BUY recommendations:

Pak Suzuki Motors (PSMC) – BUY
Current Price: PKR 417.71
Target Price: PKR 542

Honda Atlas Cars (HCAR) – BUY
Current Price: PKR 226.29
Target Price: PKR 324.00

Indus Motor (INDU) – BUY
Current Price: PKR 1077.20
Target Price: PKR 1293.99

Fauji Fertilizer Company (FFC) – BUY
Current Price: PKR 127.43
Target Price: PKR 163.5

ENGRO Fertilizer Limited (EFERT) – BUY
Current Price: PKR 92.26
Target Price: PKR 118.7

Fatima Fertilizer (FATIMA) – BUY
Current Price: PKR 46.29
Target Price: PKR 58.9

Engro Corporation (ENGRO) – BUY
Current Price: PKR 305.76
Target Price: PKR 362.00

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 133.60
Target Price: PKR 212.00

Pak Oilfields (POL) – BUY
Current Price: PKR 306.55
Target Price: PKR 423.0

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 122.08
Target Price: PKR 193.8

Pakistan State Oil (PSO) – BUY
Current Price: PKR 292
Target Price: PKR 493

Nishat Mills (NML) – BUY
Current Price: PKR 99
Target Price: PKR 168.5 

Allied Bank Limited (ABL) – BUY
Current Price: PKR 98.00
Target Price: PKR 135.00 

National Bank (NBP) – BUY
Current Price: PKR 51.95
Target Price: PKR 69.0

United Bank Ltd (UBL) – BUY
Current Price: PKR 155.25
Target Price: PKR 194.00

Habib Bank Limited (HBL) – BUY
Current Price: PKR 202.62
Target Price: PKR 270

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 25.54
Target Price: PKR 34

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 42.50
Target Price: PKR 68

Dera Ghazi Khan Cement (DGKC) – BUY
Current Price: PKR 135.48
Target Price: PKR 176

Lucky Cement (LUCK) – BUY
Current Price: PKR 518.64
Target Price: PKR 665

Maple Leaf Cement (MLCF) – BUY
Current Price: PKR 64.36
Target Price: PKR 79.05

Kohat Cement (KOHC) – BUY
Current Price: PKR 198
Target Price: PKR 268

Cherat Cement (CHCC) – BUY
Current Price: PKR 83.59
Target Price: PKR 109

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 13 Sep, 2015

BUY recommendations are PSMC, FFC, EFERT, FATIMA, OGDC, POL, PPL, PSO, KEL, NML, NCL, ABL, NBP, UBL, HBL, BAFL, BAHL, ENGRO, DGKC, LUCK, MLCF, KOHC and CHCC.

SELL recommendations are FFBL, and PKGP.

Top gainers of last week were: Jubilee Gen Ins, Kohinoor Textile, Atlas Battery, Kohinoor Energy, Soneri Bank, MCB Bank Ltd, Meezan Bank, GlaxoSmithKline Pakistan, Hub Power and Habib Bank Ltd.
    
Top losers of last week were: Pak Int.Bulk Ter, Dawood Hercules Chem, Jah.Sidd. Co., TRG Pakistan Ltd, Pak Elektron, Sui North Gas Pipe., Sui South Gas, Pak Oilfields, Habib Metro Bank and Shell Pakistan.

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

The Karachi Stock Exchange (KSE) market performance remained weak during the week because of taking cue from regional volatility amid concerns over enforcement of stricter regulations. KSE-100 index closed on 33,673 by losing -218 points or -0.64%, while KSE-30 index closed on 20,491 by losing -137 points or - 0.66%.

Average daily volumes declined by 29% WoW to 206mn shares, whereas traded value declined by 26% to (Rs9.2bn/US$87.9mn).

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

  • Pakistan cuts interest rate to 6% (42 years low) to bolster economic growth
  • Foreign flows also took a hit for the week with a net sell of US$7.6mn compared to an inflow of US$12.5mn last week
  • Cut‐off yield in the latest auction of PIBs fell up to 25bps where 3yr, 5yr and 10yr yields came in at 7.353% (‐25bps), 8.338% (‐18bps) and 9.340%(‐6bps) where GoP raised PkR87.8bn against the target of PkR50bn
  • Remittances for Aug’15 clocked in at US$1.52bn (up 13%YoY) to take 2MFY16 remittances to US$3.19bn, reflecting an increase of 5.4%YoY
  • The Chief of Elengy Terminal Pakistan Limited, a wholly owned subsidiary of ENGRO, has admitted that the NAB is investigating the process for awarding of its LNG terminal contract
  • As part of ongoing diversification, ENGRO has appointed financial advisors to provide strategic options for its 56.2% owned Chemicals business, EPCL. Within the broader market
  • Result season comes to an end leaving little room for positive triggers
  • Fertilisers, power bills of agriculture tube wells: provinces urge Centre to cut GST by 10%
  • NAB has reportedly quizzed Minister for Water and Power, Khawaja Asif on the 425‐525MW Nandipur Power Project in the presence of a Ministry's official. They are being questioned by NAB about possible wrongdoings in the project which was awarded to DECL in violation of PPRA rules
  • In a market where most of the major sectors ended in red, banking sector emerged as a clear winner, cumulatively adding 129pts to the index with HBL and MCB contributing 89 and 62pts respectively
  • Telecom sector: Pakistan to have 40mn Smartphones by end of 2016

Following are few BUY recommendations:

Pak Suzuki Motors (PSMC) – BUY
Current Price: PKR 420.8
Target Price: PKR 542

Fauji Fertilizer Company (FFC) – BUY
Current Price: PKR 131.0
Target Price: PKR 163.5

ENGRO Fertilizer Limited(EFERT) – BUY
Current Price: PKR 94.4
Target Price: PKR 118.7

Fatima Fertilizer (FATIMA) – BUY
Current Price: PKR 48.8
Target Price: PKR 58.9

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 142.1
Target Price: PKR 238.2

Pak Oilfields (POL) – BUY
Current Price: PKR 310.1
Target Price: PKR 423.0

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 131.0
Target Price: PKR 193.8

Pakistan State Oil (PSO) – BUY
Current Price: PKR 308.8
Target Price: PKR 493

K-Electric Co. (KEL) – BUY 
Current Price: PKR 7.4
Target Price: PKR 13.3

Nishat Mills (NML) – BUY
Current Price: PKR 102.6
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 100.0
Target Price: PKR 140.0 

National Bank (NBP) – BUY
Current Price: PKR 53.1
Target Price: PKR 69.0

United Bank Ltd (UBL) – BUY
Current Price: PKR 161.2
Target Price: PKR 194.00

Habib Bank Limited (HBL) – BUY
Current Price: PKR 216.4
Target Price: PKR 270

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 26.8
Target Price: PKR 34

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 43.24
Target Price: PKR 68

Engro Corporation (ENGRO) – BUY
Current Price: PKR 309.42
Target Price: PKR 403

Dera Ghazi Khan Cement (DGKC) – BUY
Current Price: PKR 135.17
Target Price: PKR 176

Lucky Cement (LUCK) – BUY
Current Price: PKR 525.08
Target Price: PKR 665

Maple Leaf Cement (MLCF) – BUY
Current Price: PKR 67.35
Target Price: PKR 79.05

Kohat Cement (KOHC) – BUY
Current Price: PKR 210
Target Price: PKR 268

Cherat Cement (CHCC) – BUY
Current Price: PKR 85
Target Price: PKR 109

Following are few SELL recommendations:

Fauji Fert. Bin Qasim Ltd. (FFBL) – SELL
Current Price: PKR 60.70
Target Price: PKR 49.00

Pakgen Power Ltd (PKGP) – SELL
Current Price: PKR 29.00
Target Price: PKR 24.00

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 7 Sep, 2015

BUY recommendations are PSMC, FFC, OGDC, POL, PPL, PSO, KEL, NML, NCL, ABL, NBP, UBL, HBL, BAFL, BAHL, ENGRO, DGKC, LUCK, KOHC and CHCC.

SELL recommendations are FFBL, PKGP, HUBCO, HCAR and INDU.

Top gainers of last week were: Sui North Gas Pipe., Pak Int.Bulk Ter, Bannu Woollen, Oil and Gas Deve, Hum Network Ltd, Shell Pakistan, Service Indus, TRG Pakistan Ltd, Fatima Fert.Co. and Engro Fertilizer.
    
Top losers of last week were: Shezan International Ltd, Pak Tobacco Co., Jah.Sidd. Co., IGI Insurance, GlaxoSmithKline Pakistan, Maple Leaf Cem., Nestle Pakistan, B.O.Punjab, Ghani Glass Ltd and Punjab Oil.

Top ten volume leaders: KEL, PAEL, TRG, JSCL, FFBL, SNGP, PIBTL, SSGC, FCCL, BOP and EFERT.

The Karachi Stock Exchange (KSE) market showed persistently negative performance, amid continuation of political noise and global oil price volatility weighing on Oil & Gas sector performance. KSE-100 index closed on 33,891 by losing -556 points or -1.62%, while KSE-30 index closed on 20,628 by losing -348 points or - 1.66%.

The average traded value was pulled down by 11.19%WoW to average at US$122mn, whereas the average traded volume also reduced by 3.71%WoW to average at 289mn shares.

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

  • Gas tariff hike in the range of 10%‐63% for the industrial sector acted as a major dampener during the week particularly for the fertilizer sector, though some support came through subsequent urea price increase (+PkR159/bag)
  • Ministry of Power & Natural Resources reducing fuel prices by PkR3.0/ltr
  • CPI for Aug’15 reading at 1.72%YoY vs. 1.8%YoY in Jul’15
  • GoP borrowing PkR 187.9 billion through MTB auction where cut‐off yields remained unchanged
  • Expectations of GoP and K‐Electric to finalize a revised Power Purchase Agreement (PPA) and Gas Supply Agreement (GSA) during the second round of talks to be held on Sep 07’15
  • Gas distribution companies comes out as a winner where both gas utilities SSGC and SNGP remain upbeat during the week
  • Pakistan's first local coal‐fired project of 660MW to be established by SECMC has reportedly achieved financial close with the help of federal government
  • Gas prices revised upward, POL products' prices slashed
  • Amreli Steels Limited is all set to launch its IPO in mid‐September and hopes to raise PKR3.37bn for the expansion. 74 mn shares will be offered; 75% of which will be offered to institutions and high net‐worth individuals and the rest to general public 
  • PPL has made another hydrocarbon discovery at its exploration well Fazl X‐I located in Hala block.
  • KEL are expected to finalize a revised PPA and GSA during the second round of talks to be held on September 7, 2015

Following are few BUY recommendations:

Pak Suzuki Motors (PSMC) – BUY
Current Price: PKR 417.7
Target Price: PKR 542

Fauji Fertilizer Company (FFC) – BUY
Current Price: PKR 134.0
Target Price: PKR 163.5

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 142.5
Target Price: PKR 238.2

Pak Oilfields (POL) – BUY
Current Price: PKR 339.0
Target Price: PKR 442.00

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 132.8
Target Price: PKR 221.00

Pakistan State Oil (PSO) – BUY
Current Price: PKR 314.8
Target Price: PKR 493

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

Nishat Mills (NML) – BUY
Current Price: PKR 104.4
Target Price: PKR 168.5 

Nishat Chunian Ltd. (NCL) – BUY
Current Price: PKR 37.5
Target Price: PKR 45.7 

Allied Bank Limited (ABL) – BUY
Current Price: PKR 100.2
Target Price: PKR 140.0 

National Bank (NBP) – BUY
Current Price: PKR 53.4
Target Price: PKR 69.0

United Bank Ltd (UBL) – BUY
Current Price: PKR 160.7
Target Price: PKR 194.00

Habib Bank Limited (HBL) – BUY
Current Price: PKR 213.2
Target Price: PKR 270

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 27.6
Target Price: PKR 34

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 43
Target Price: PKR 68

Engro Corporation (ENGRO) – BUY
Current Price: PKR 318.7
Target Price: PKR 403

Dera Ghazi Khan Cement (DGKC) – BUY
Current Price: PKR 136.4
Target Price: PKR 176

Lucky Cement (LUCK) – BUY
Current Price: PKR 518.2
Target Price: PKR 665

Kohat Cement (KOHC) – BUY
Current Price: PKR 216
Target Price: PKR 268

Cherat Cement (CHCC) – BUY
Current Price: PKR 88.60
Target Price: PKR 109

Following are few SELL recommendations:

Fauji Fert. Bin Qasim Ltd. (FFBL) – SELL
Current Price: PKR 62.20
Target Price: PKR 49.00

Pakgen Power Ltd (PKGP) – SELL
Current Price: PKR 28.69
Target Price: PKR 24.00

Hub Power Co (HUBCO) – SELL
Current Price: PKR 103.67
Target Price: PKR 71.00

Honda Atlas Cars (HCAR) – SELL
Current Price: PKR 238.32
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