Pakistan Stock Exchange (PSX) Weekly Analysis 12 Jan, 2016

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: Ferozsons (Lab), The Searle Pak, Pak Elektron, Pak Tobacco Co, Honda Atlas Cars, Gul Ahmed, Pak Int.Bulk Ter, Ghani Glass Ltd, Shell Pakistan and Service Indus.
   
Top losers of last week were: Allied Rental Mod, Pak Oilfields, Oil and Gas Deve, Muree Brewery Co Ltd, Pak Petroleum, Sui North Gas Pipe., Larpir Power Ltd, Hum Network Ltd, Fauji Fert Bin and Attock Refinery Ltd.

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

The Karachi Stock Exchange (KSE) market witnessed volatility during the week as the index traded in the range of 600pts. Therefore, the benchmark index lost 1.46% points during the week to close at 32,534pts (-475pts). The benchmark Karachi Stock Exchange (KSE) 100-share Index lost 694 points or 2.1 percent, to close the week at 32,534.85 points.

Average daily volume increased 5% to 119.8mn shares and average daily value increased 16% to Rs7.6bn/US$72.6mn.

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


  • The international front remained edgy with heightened concerns of an economic slowdown leading to Chinese equities hitting the lower circuit for two days in the outgoing week
  • Regional markets sentiment remained weak owing to tension between Saudi Arabia & Iran, weak manufacturing data from China & the subsequent devaluation of Yuan, and depressing oil prices. Resultantly, the benchmark KSE-100 index also remained under pressure and declined 2.1% to close at the 32,535 index level
  • Slowing demand and persistently higher inventories truncated the global crude markets that witnessed a fresh round of price compression as Arab Light Crude fell below USD28/barrel
  • Government of Pakistan has estimated a PKR100bn collection from the voluntary tax compliance scheme
  • Repatriation of profits on foreign investments rose to USD802mn during the 5MFY16, indicating that the half‐year repayment will easily cross USD1bn, as per SBP. What is more concerning for Pakistan is the inflow of net FDI, which stood at USD640mn during the period 
  • During current tenure of the GoP record 227 wells have been drilled, which resulted in 65 new oil and gas discoveries
  • 10th IMF Review to begin on January 26
  • Dr Asim admits to ‘role’ in KSE crash, court told
  • FIA raided two offices of AKD Securities here and arrested the firm's CEO and 2‐directors over fraud charges that caused a loss of PKR290mn to EOBI in 2010
  • Fertiliser firms await PKR5bn worth of subsidy payments. SBP has not been able to pay even the first instalment of subsidy worth over PKR5bn to fertiliser companies importing DAP due to delay in clearance from the finance division
  • PAEL to raise PKR995mn from right shares issuance
  • Cotton production dips 33.5% in 7 months
  • Senate body sets deadline to settle PTCL sale agreement
  • WB projects Pakistan’s GDP to achieve 4.5% in FY17
  • Foreigners were net sellers of US$11.2mn worth of shares during the week


Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 92.60
Target Price: PKR 135.00

Attock Petroleum (APL) – BUY 
Current Price: PKR 480.01
Target Price: PKR 626.37

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 43.48
Target Price: PKR 68

Cherat Cement (CHCC) – BUY 
Current Price: PKR 91.38
Target Price: PKR 120

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 84.81
Target Price: PKR 110

Engro Corporation (ENGRO) – BUY
Current Price: PKR 277.86
Target Price: PKR 362.00

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 42.24
Target Price: PKR 49

Fauji Fertilizer Bin Qasim (FFBL) – BUY 
Current Price: PKR 50.31
Target Price: PKR 62

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 193.36
Target Price: PKR 268

Honda Atlas Cars (HCAR) – BUY 
Current Price: PKR 251.90
Target Price: PKR 330.00

Kot Addu Power Co (KAPCO) – BUY 
Current Price: PKR 80.56
Target Price: PKR 94

Lucky Cement (LUCK) – BUY
Current Price: PKR 501.98
Target Price: PKR 652

MCB Bank Limited (MCB) – BUY 
Current Price: PKR 211.06
Target Price: PKR 268

National Bank (NBP) – BUY 
Current Price: PKR 53.16
Target Price: PKR 65

Nishat Power Ltd (NPL) – BUY 
Current Price: PKR 51.00
Target Price: PKR 59

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 108.73
Target Price: PKR 201.00

Pioneer Cement (PIOC) – BUY 
Current Price: PKR 90.18
Target Price: PKR 105

Pak Oilfields (POL) – BUY 
Current Price: PKR 243.89
Target Price: PKR 471

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 115.06
Target Price: PKR 193.8

United Bank Ltd (UBL) – BUY 
Current Price: PKR 152.96
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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