Pakistan Stock Exchange (PSX) Weekly Analysis 18 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: International Steels Ltd., Service Indus, Bata (Pak) Ltd., Colgat Palmolive, Cherat Cement, Archorma Pakistan, Lalpir Power Ltd, Hub Power, Maple Leaf Cement, National Bank of Pakistan.
   
Top losers of last week were: TRG Pakistan Ltd., Jahangir Siddique Co., Pak Oilfields, Mari Petroleum, Associated Services Limited, Sui North Gas Pipe., Pak Int. Bulk Terminal, Bannu Woolen, Sui Southern Gas, Dawood Hercules Chem.

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

The Pakistan Stock Exchange (PSX) market witnessed volatility during the week as the index traded in the range of 1300pts. The benchmark Pakistan Stock Exchange (PSX) 100-share Index lost -1318 points or 4.1 percent, to close the week at 31,001 points.

Average daily volume increased 10% to 131.4mn shares, while average daily value declined 5% to Rs7.3bn/US$69.2mn.

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

• Crisis like situation in the global markets, especially China and plummeting global commodity prices (oil, fertilizers etc.), incited across the board panic selling in the market
• Foreigners were net buyers of US$1.2mn over the week
• Cement and Banking sector witnessed net buying of US$1.5mn each
• Net selling was seen in Electricity, Chemicals and Oil & Gas sectors in the range of US$1.1-1.3 million over the week
• According to latest numbers by State Bank of Pakistan (SBP), Foreign Direct Investment (FDI) in Pakistan for 1HFY16 has increased 2.2% YoY to US$624.1mn
• Economic Coordination Committee (ECC) has approved the LNG deal with Qatar at a price of ~US$5.5/mmbtu
• E&P sector remained under stress as the benchmark Arab Lite tested an intra-day low of USD24.3/bbl, a 12 -year low
• On regional front, China provided upward drive by reporting surprise growth in export number for December
• Steel manufacturing stocks showed relative resistance to the downfall as GoP imposed anti-dumping duty in the range of 8% to 19% on some steel products from China and Ukraine
• With oil prices nose-diving by 10% during the week, Oil & gas sector also receded by 10.23%
• Honda launches sporty, elegant HR-V in Pakistan
• OGDCL discovers gas in Sukkur
• Potential cut in development budget by Rs402bn or 27% to keep fiscal deficit at 4.3% during FY16E
• Increase in auto sales by 64% YoY in Dec-2015
• Pak Suzuki (PSMC) introducing Cultus Limited Edition

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 89.87
Target Price: PKR 135.00

Attock Petroleum (APL) – BUY 
Current Price: PKR 433.90
Target Price: PKR 626.37

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 27.50
Target Price: PKR 32

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 42.65
Target Price: PKR 68

Cherat Cement (CHCC) – BUY 
Current Price: PKR 94.00
Target Price: PKR 120

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 80.50
Target Price: PKR 110

Engro Corporation (ENGRO) – BUY
Current Price: PKR 268.66
Target Price: PKR 362.00

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 40.60
Target Price: PKR 49

Fauji Fertilizer Bin Qasim (FFBL) – BUY 
Current Price: PKR 47.91
Target Price: PKR 62

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 184.52
Target Price: PKR 268

Honda Atlas Cars (HCAR) – BUY 
Current Price: PKR 241.72
Target Price: PKR 330.00

Kot Addu Power Co (KAPCO) – BUY 
Current Price: PKR 76.99
Target Price: PKR 94

Lucky Cement (LUCK) – BUY
Current Price: PKR 500.10
Target Price: PKR 652

MCB Bank Limited (MCB) – BUY 
Current Price: PKR 200.44
Target Price: PKR 268

National Bank (NBP) – BUY 
Current Price: PKR 53.27
Target Price: PKR 65

Nishat Chun Power (NCPL) – BUY 
Current Price: PKR 54.00
Target Price: PKR 63

Nishat Power Ltd (NPL) – BUY 
Current Price: PKR 50.54
Target Price: PKR 59

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 98.41
Target Price: PKR 201.00

Pioneer Cement (PIOC) – BUY 
Current Price: PKR 89.00
Target Price: PKR 105

Pak Oilfields (POL) – BUY 
Current Price: PKR 198.57
Target Price: PKR 471

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 103.60
Target Price: PKR 193.8

United Bank Ltd (UBL) – BUY 
Current Price: PKR 144.53
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