Pakistan Stock Exchange (PSX) Weekly Analysis 3 April, 2016

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

Top gainers of last week were: National Foods, Millat Tractors, Punjab Oil, TRG Pakistan Ltd, Jah.Sidd. Co., Allied Bank, Pak Tobacco Co, Ferozsons (Lab), Honda Atlas Cars and Attock Refinery Ltd.

Top losers of last week were: Rafhan Maize Prod., Associated Services Limited, Muree Brewery Co Ltd, Ibrahim Fibres, EFU Life Assur Ltd., Soneri Bank, Pak Elektron, Habib Bank Ltd, EFU General Ins and GlaxoSmithKline Pak.

Top ten volume leaders: TRG, KEL, SNGP, JSCL, PAEL, PIBTL, FCCL, SSGC, HBL, MLCF and FATIMA.

The Pakistan Stock Exchange (PSX) market index regained some momentum after the KSE‐100 index crossing 33k pts level during the week to close at 33,450pts, up 1.74%WoW despite volatility from global crude trends. The benchmark Karachi Stock Exchange (KSE) 100-share Index losing 573 points, or 1.74 percent, to close the week at 33,450 points. KSE 30-share Index gaining 213 points, or 1.11 percent, to end at 19,352 points.

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

  • The market extended its dull momentum into the earlier part of the week, with lower volumes as the negative vibe emanating from the Lahore bomb blast kept participants at bay
  • Escalating political tension on the back of Islamabad sit‐in kept its strong grip on sentiments
  • Foreigners were net sellers of US$9.6mn this week. Net selling was seen in Banks and Chemicals of US$15.6 and US$2.8, respectively. Cement sector continued to attract foreign interest as net buying of US$4.3mn was witnessed in the same
  • According to a PSX notice, Bestway Cement (BWCL) will be holding a board meeting to consider and pass a resolution to proceed with scheme of amalgamation of Pakcem Ltd (PAKCEM) with and into BWCL. BWCL has 88% shareholding in PAKCEM
  • Federal Board of Revenue (FBR) collected Rs286.8bn worth of taxes in March 2016, an increase of 24.9% YoY primarily due to additional duties imposed on imports of luxury items and sales tax on oil products
  • According to news reports citing an FBR official, shortfall of Rs40bn in 1QFY16 has mostly been recovered in the last couple of months and will be completely recovered in April 2016. target of Rs3.1tn for FY16 with a budget deficit of 4.3% of GDP; Rs1.8tn collected in 8MFY16 period
  • MARI announced crude oil discovery at exploratory well Halini Deep‐1 in Karak block
  • OGRA determined price of the LNG delivered on ex‐ship (DES) basis at US$8.99/MMBTU exclusive GST and allowed increase in PSO margin to 2.5% on DES price from the previous level of 1.8%
  • CDWP approved PkR218.2bn worth of development projects including PkR129.7bn worth of motorway construction from Halka‐Burhan on M‐1 to DI Khan as part of CPEC
  • IMF's Executive Board approved disbursement of US$502.6mn after the completion of the tenth review under the EFF arrangement
  • MSCI released its reclassification proposal with regard to migration of Pakistan index from frontier to emerging markets, where formal is expected to take place in May’17
  • Government of Pakistan increased the price of petrol and HSD by PkR3.09/ltr and PkR1.40/ltr to PkR64.27/ltr and PkR72.52/ltr respectively
  • The results of GLAXO failed to excite market participants as a large one‐time gain propelled the bottom‐line
  • PAEL was seen losing steam to selling pressure as it skipped a dividend payout and reported sub‐par results
  • Nepra imposed PKR10mn fine on KEL for its failure to provide uninterrupted electric power services to its consumers and for deliberately under‐utilizing its available generation capacity

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY
Current Price: PKR 92.00
Target Price: PKR 135.00 

Attock Petroleum (APL) – BUY
Current Price: PKR 429.5
Target Price: PKR 626.37

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 24.92
Target Price: PKR 32

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 40.80
Target Price: PKR 68

DG Khan Cement (DGKC) – BUY
Current Price: PKR 175.9
Target Price: PKR 237

ENGRO Fertilizer Limited (EFERT) – BUY
Current Price: PKR 70.3
Target Price: PKR 118

Engro Corporation (ENGRO) – BUY
Current Price: PKR 319.77
Target Price: PKR 362.00

Fatima Fertilizer (FATIMA) – BUY
Current Price: PKR 32.9
Target Price: PKR 49

Fauji Fertilizer Company (FFC) – BUY
Current Price: PKR 107.4
Target Price: PKR 124.19

Habib Bank Limited (HBL) – BUY
Current Price: PKR 173.3
Target Price: PKR 249.7

Honda Atlas Cars (HCAR) – BUY
Current Price: PKR 252.08
Target Price: PKR 330.00

Indus Motor (INDU) – BUY
Current Price: PKR 950.4
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 546.4
Target Price: PKR 652

Kot Addu Power Co (KAPCO) – BUY
Current Price: PKR 77.57
Target Price: PKR 94

MCB Bank Limited (MCB) – BUY
Current Price: PKR 207.19
Target Price: PKR 268

National Bank (NBP) – BUY
Current Price: PKR 51.93
Target Price: PKR 65.00

Nishat Chun Power (NCPL) – BUY
Current Price: PKR 49.67
Target Price: PKR 63

Nishat Mills (NML) – BUY
Current Price: PKR 95.8
Target Price: PKR 129.2

Nishat Power Ltd (NPL) – BUY
Current Price: PKR 50.05
Target Price: PKR 59

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 114.6
Target Price: PKR 160

Pak Oilfields (POL) – BUY
Current Price: PKR 257.99
Target Price: PKR 348

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 129.0
Target Price: PKR 168

Pak Suzuki Motors (PSMC) – BUY
Current Price: PKR 417.4
Target Price: PKR 532

Pakistan State Oil (PSO) – BUY
Current Price: PKR 354.4
Target Price: PKR 456

Pakistan Telecommunications (PTC) – BUY
Current Price: PKR 15.4
Target Price: PKR 21.9

United Bank Ltd (UBL) – BUY
Current Price: PKR 152.0
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

1 comment:

  1. Thanks rana bhai for ur weekly updates. Keep up the good work.

    ReplyDelete