Pakistan Stock Exchange (PSX) Weekly Analysis 16 May, 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, PPL, PSMC, PSO, PTC and UBL.

Top gainers of last week were: Feroz 1888 Mills Ltd, Bannu Woollen, Associated Services Limited, Shifa International Hospitals, Thal Limited, PICIC Growth, TRG Pakistan Ltd, ICI Pakistan, Sui North Gas Pipe. and Hub Power.

Top losers of last week were: Pak Tobacco Co, Rafhan Maize Prod., B.O.Punjab, Ibrahim Fibres, EFU Life Assur Ltd., Indus Dyeing, Nestle Pakistan, Faysal Bank, International Steels Ltd and Habib Bank Ltd.

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

The Pakistan Stock Exchange (PSX) market index breached its all-time high closing early in the week and reached the 36,235-point level. The benchmark Karachi Stock Exchange (KSE) 100-share Index gaining 148 points, or 0.41 percent, to close the week at 36,122 points. KSE 30-share Index gaining 4 points, or 0.02 percent, to end at 21,099 points.

Average daily volume rose 23% to 294.5 million shares whereas average daily value declined 12% to Rs11.2 billion/$106.9 million. Foreigners were net sellers of $12.7 million worth of shares in the outgoing week. Net selling worth $3.3 million was seen in cement sector, while net buying of $1.8 million was see in the oil & gas marketing sector.

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

  • The major highlight of the week was successful completion of the eleventh review by the International Monetary Fund (IMF) for the second last tranche of the Extended Fund Facility (EFF)
  • Significant gains were recorded in Fauji Meat Limited with a cumulative volume of 2500 shares, contributing 140 points to the index
  • Habib Bank Limited  (-3.9%) succumbed to profit taking during the week after gaining a sizable +5.35% in previous week, dragging the index down by 94 points
  • Cabinet Committee of Privatisation approved divestment of government’s residual shareholding in Kot Adu Power Company Limited (KAPCO) and also approved sale of shares in Mari Petroleum Company Limited (MPCL)
  • Index stalwarts succumbed to selling pressure with banks and cements leading the drop, as reported foreign selling in these stocks exaggerated their decline
  • The second episode of the Panama leaks failed to stir the market as it featured names of prominent business tycoons
  • Foreigners remained net sellers during the week as a sum of USD12.48 mn was drained, after a remote break in outflows seen in the week earlier that accumulated an inflow of USD21.25mn
  • Amongst small cap names PIBTL was seen rallying in the last few days on anticipation of its inclusion into MSCI small cap index, which came into fruition on the last trading day of the week
  • The auto sector witnessed HCAR piling steady gains on excitement of a stellar earnings announcement and market chatter regarding an earlier than expected model refresh of its flagship Civic
  • Pharmaceutical names witnessed steady upwards momentum during the week driven by rumors of a price increase being agreed with the regulators, while the chemical sector was in the limelight as market participants anticipate planned merger and acquisition activity to translate into meaningful outcomes
  • FBR is revising sales tax structure on 5‐major export‐oriented sectors, ie, textile, leather, carpets, surgical and sports goods under SRO.1125 during the ongoing budget exercise for FY16‐17
  • Nepra approved a reduction of PKR 3.86 per unit in power tariff for the consumers of K‐Electric under fuel adjustment surcharge for the month of March. K‐electric saved PKR 420mn through electricity generated by local sources and through external sources cost PKR 370mn additional
  • After having established a foothold in the engine oil distribution market, Hi‐Tech Lubricants is now gearing up to open 300 petrol pumps nationwide, said its company secretary Muhammad Imran
  • Mughal Iron & Steel (MUGHAL) has informed through a PSX notice that the company has been contracted by Frontier Works Organization (FWO) to supply steel bars for development work being undertaken on M-9 project located on China-Pakistan Economic Corridor’s (CPEC) Eastern route

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY
Current Price: PKR 88.08
Target Price: PKR 135.00 

Attock Petroleum (APL) – BUY
Current Price: PKR 434.77
Target Price: PKR 626.37

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 25.37
Target Price: PKR 32

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 43.00
Target Price: PKR 68

DG Khan Cement (DGKC) – BUY
Current Price: PKR 180.5
Target Price: PKR 237.0

ENGRO Fertilizer Limited (EFERT) – BUY
Current Price: PKR 70.31
Target Price: PKR 106.49

Engro Corporation (ENGRO) – BUY
Current Price: PKR 325.96
Target Price: PKR 362.00

Fatima Fertilizer (FATIMA) – BUY
Current Price: PKR 31.65
Target Price: PKR 49

Fauji Cement Company Limited (FCCL) – BUY
Current Price: PKR 43.00
Target Price: PKR 50.0

Fauji Fertilizer Bin Qasim (FFBL) – BUY
Current Price: PKR 54.79
Target Price: PKR 60.48

Fauji Fertilizer Company (FFC) – BUY
Current Price: PKR 113.54
Target Price: PKR 124.19

Hascol Petroleum (HASCOL) – BUY
Current Price: PKR 145.9
Target Price: PKR 200.8

Habib Bank Limited (HBL) – BUY
Current Price: PKR 187.98
Target Price: PKR 249.7

Honda Atlas Cars (HCAR) – BUY
Current Price: PKR 297.05
Target Price: PKR 330.00

Indus Motor (INDU) – BUY
Current Price: PKR 948.53
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 600.7
Target Price: PKR 652

MCB Bank Limited (MCB) – BUY
Current Price: PKR 229.21
Target Price: PKR 268

National Bank (NBP) – BUY
Current Price: PKR 55.41
Target Price: PKR 65.00

Nishat Chun Power (NCPL) – BUY
Current Price: PKR 49.96
Target Price: PKR 63

Nishat Power Ltd (NPL) – BUY
Current Price: PKR 49.27
Target Price: PKR 59

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 142.6
Target Price: PKR 160

Pioneer Cement (PIOC) – BUY
Current Price: PKR 99.8
Target Price: PKR 123.0

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 144.64
Target Price: PKR 168

Pak Suzuki Motors (PSMC) – BUY
Current Price: PKR 387.40
Target Price: PKR 532

Pakistan State Oil (PSO) – BUY
Current Price: PKR 377.0
Target Price: PKR 456

Pakistan Telecommunications (PTC) – BUY
Current Price: PKR 15.0
Target Price: PKR 21.9

United Bank Ltd (UBL) – BUY
Current Price: PKR 172.14
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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