Pakistan Stock Exchange (PSX) Weekly Analysis 24 April, 2016

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

Top gainers of last week were: Bannu Woollen, Sui North Gas Pipe., Hum Network Ltd, Pak Oilfields, Packages Limited, Pak Petroleum, Rafhan Maize Prod., National Refinery, Feroz 1888 Mills Ltd and Attock Refinery Ltd.

Top losers of last week were: Fauji Fert Bin, J.D.W.Sugar, Punjab Oil, Colgate Palmolive, National Foods, Engro Fertilizer, Indus Dyeing, Pak Services, D.G.K.Cement and Jah.Sidd. Co.

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

The Pakistan Stock Exchange (PSX) market index remain range-bound during the week amid persistent foreign selling. The benchmark Karachi Stock Exchange (KSE) 100-share Index losing -27 points, or - 0.08 percent, to close the week at 33,740 points. KSE 30-share Index gaining -12 points, or - 0.06 percent, to end at 19,538 points.

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

  • The political arena was given a severe jolt when the Army Chief sacked a dozen top ranking military officers on corruption charges setting an example for the ruling elite to follow, that triggered a wave of panic selling at the bourse
  • Week started following the meeting between key OPEC & Non OPEC members who were failed to reach consensus on capping oil output in Doha on Sunday amid a standoff to slash its market share
  • The Panama scandal continued to unleash in the outgoing week keeping the ruling elite under the radar and the market participants on the edge
  • Oil price nose dived at the start of the session where local equities also felt the brunt
  • Foreign direct investment (FDI) rose 15%YoY to US$957mn in 9MFY16 from US$832m
  • The federal government released PkR400.9bn (57.3% of the total budgeted for the current fiscal year)
  • Massive reduction in power tariff by PkR2.78/unit on account of fuel price adjustment for March 2016 following a dip in global crude oil prices
  • Indus Motor Company (INDU) announced results for 3QFY16 in which company reported profit after tax of Rs2.9bn (EPS Rs37.6), a decline of 10% YoY. Company’s sales fell 2.5% YoY to Rs28.3bn as sales of Toyota Fortuner and Hilux declined while those of Corolla remained almost flat. INDU’s gross profit fell 10.2% to Rs4.4bn and it also witnessed a 1.3ppts decline in gross margins to 15.7%
  • Sui Northern Gas Pipelines (SNGPL) has informed through a PSX notice that Oil & Regulatory Authority (OGRA) has allowed the company to include assets being created for transport of Liquefied Natural Gas (LNG) in its revenue calculation
  • Habib Bank (HBL) has received a license to setup a branch in China, the bank informed through a notice on PSX. This makes HBL the first South Asian bank to get this permission. The bank will be establishing operations in Urumqi, largest city in Xinjiang province, which borders Pakistan along Silk Route
  • Pakistan cotton production for the outgoing season (2015‐16) is likely to be missed by 35 % and it is expected at 10.1mn bales against the initial target of 15.49mn bales
  • PTCL has planned to make a massive investment in telecom infrastructure in Gwadar in view of mega development projects of deep sea port and CPEC to provide facilities to international companies investing in this port city
  • CCP serving show cause notices to four dairy manufacturers (EFOODS, Shakarganj Foods Products Limited, Haleeb Foods Limited and Noon Pakistan Limited) on alleged deception through advertising tea whiteners as milk

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY
Current Price: PKR 89.92
Target Price: PKR 135.00 

Attock Petroleum (APL) – BUY
Current Price: PKR 450.00
Target Price: PKR 626.37

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 25.03
Target Price: PKR 32

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 42.01
Target Price: PKR 68

DG Khan Cement (DGKC) – BUY
Current Price: PKR 171.0
Target Price: PKR 237.0

ENGRO Fertilizer Limited (EFERT) – BUY
Current Price: PKR 69.19
Target Price: PKR 106.49

Engro Corporation (ENGRO) – BUY
Current Price: PKR 307.65
Target Price: PKR 362.00

Fatima Fertilizer (FATIMA) – BUY
Current Price: PKR 30.59
Target Price: PKR 49

Fauji Fertilizer Bin Qasim (FFBL) – BUY
Current Price: PKR 50.13
Target Price: PKR 60.48

Fauji Fertilizer Company (FFC) – BUY
Current Price: PKR 108.6
Target Price: PKR 124.19

Habib Bank Limited (HBL) – BUY
Current Price: PKR 174.17
Target Price: PKR 249.7

Honda Atlas Cars (HCAR) – BUY
Current Price: PKR 267.15
Target Price: PKR 330.00

Indus Motor (INDU) – BUY
Current Price: PKR 957.67
Target Price: PKR 1109.67

K-Electric (KEL) – BUY
Current Price: PKR 7.2
Target Price: PKR 13.7

Lucky Cement (LUCK) – BUY
Current Price: PKR 550.22
Target Price: PKR 652

MCB Bank Limited (MCB) – BUY
Current Price: PKR 200.17
Target Price: PKR 268

National Bank (NBP) – BUY
Current Price: PKR 53.99
Target Price: PKR 65.00

Nishat Chun Power (NCPL) – BUY
Current Price: PKR 49.86
Target Price: PKR 63

Nishat Power Ltd (NPL) – BUY
Current Price: PKR 50.37
Target Price: PKR 59

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 119.34
Target Price: PKR 160

Pioneer Cement (PIOC) – BUY
Current Price: PKR 95.0
Target Price: PKR 123.0

Pak Oilfields (POL) – BUY
Current Price: PKR 308.44
Target Price: PKR 348

Pakistan Petroleum (PPL) – BUY Current Price: PKR 139.27
Target Price: PKR 168

Pak Suzuki Motors (PSMC) – BUY
Current Price: PKR 400.78
Target Price: PKR 532

Pakistan State Oil (PSO) – BUY
Current Price: PKR 360.9
Target Price: PKR 456

Pakistan Telecommunications (PTC) – BUY
Current Price: PKR 14.7
Target Price: PKR 21.9

United Bank Ltd (UBL) – BUY
Current Price: PKR 157.93
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

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