Pakistan Stock Exchange (PSX) Weekly Analysis 13 June, 2016

BUY recommendations are ABL, APL, ASTL, BAFL, BAHL, DGKC, EFERT, FATIMA, FCCL, HBL, INDU, KEL, KOHC, LUCK, MCB, NBP, NCPL, NPL, OGDC, PSMC, PSO, PTC and UBL.

Top gainers of last week were: Feroz 1888 Mills Ltd, National Refinery, Pak Services, The Searle Pak, Pak Petroleum, Honda Atlas Cars, Shifa International Hospitals, J.D.W.Sugar, Bata (Pak) Ltd. and Pak Int.Bulk Ter.

Top losers of last week were: International Steels Ltd, EFU Life Assur Ltd., Indus Dyeing, Bannu Woollen, Adamjee Ins, Sui North Gas Pipe., P.T.C.L.A, Nishat Mills Limited, Sui South Gas and TRG Pakistan Ltd.

Top ten volume leaders: KEL, FCCL, PIBTL, EFERT, TRG, SNGP, FFBL, NML, PAEL, ENGRO, and JSCL.

The Pakistan Stock Exchange (PSX) market gave way to selling pressure towards the week's close, ending at 36,941pts edging lower by 0.76%WoW. The benchmark Karachi Stock Exchange (KSE) 100-share Index losing -282 points, or -0.76 percent, to close the week at 36,941 points. KSE 30-share Index losing -438 points, or -2.05 percent, to end at 20,930 points.

Volumes took a breather during the week with the onset of Ramazan, inducing short trading hours. Average trading volume declined by 6% week-on-week to 152.0 million shares. Foreigners remained net sellers during the week, offloading $7.85 million worth of shares excluding $78 million inflow in Efert’s private placement

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


  • The market opened on Monday following neutral-to-positive budget measures and settled comfortably with fertiliser and textile names leading the way
  • With the start of Ramazan the index remained marginally subdued and by mid-week the bourse seemed determined to lead a dull ride
  • Friday resulted in massive profit-taking and panic selling over rumours of Pakistan’s possible inclusion in the MSCI emerging markets index taking a hit
  • In a latest development, Engro Corporation (Engro) informed through a PSX notice that it has successfully sold 295 million shares of Engro Fertilizers (Efert) to local and foreign investors through private placement. The said development, however, brought Efert under pressure as the deal was executed at 4.2% discount to Efert’s previous day closing price
  • In other news, Honda Car started pre-bookings for its new 2016 Civic. The announcement gave a boost to the company’s share price at the PSX
  • Budgetary measures supported agri‐industries, cements contended with an adverse tax levy, while blue chip tex􀆟le plays rallied on improved expecta􀆟ons of healthier margins brought on by tax relief
  • PTA declared Telenor Pakistan, the only operator that had submi􀆩ed a bid, as winner of its 850MHz spectrum (3G/4G) auc􀆟on with base price of US$395mn
  • PSO inked an agreement with China East Resource Import and Export Corpora􀆟on (CERIECO), the EPC contractor for SECMC to supply HSD to Thar Mining Project Block II
  • GoP borrowed PkR131bn through an MTB auc􀆟on, where cut‐off yields for 3mth, 6mth and 12mth papers came in at 5.9463% (down 4bps), 5.9684% (down 4bps) and 6.0048% (down 2bps) respec􀆟vely
  • PPL is expected to pay 10% of wellhead gas price as lease extension bonus to the government of Balochistan for the Sui field with accompanying CAPEX of PkR20bn into explora􀆟on ac􀆟vi􀆟es during the lease period
  • The government decision to extend subsidy to Urea and DAP brought a fresh wave of excitement in fertilizer sector where FATIMA rose to the upper price limit on the first trading day of the week
  • Price of cement bag to rise by PKR34 under new excise duty regime


Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 82.9
Target Price: PKR 101.3

Attock Petroleum (APL) – BUY 
Current Price: PKR 420.0
Target Price: PKR 626.37

Amreli Steels Ltd (ASTL) – BUY 
Current Price: PKR 47.7
Target Price: PKR 83.0

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 24.40
Target Price: PKR 32

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 40.05
Target Price: PKR 68

DG Khan Cement (DGKC) – BUY 
Current Price: PKR 175.6
Target Price: PKR 237.0

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 66.5
Target Price: PKR 95

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 31.2
Target Price: PKR 49

Fauji Cement Company Limited (FCCL) – BUY 
Current Price: PKR 34.7
Target Price: PKR 50.0

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 174.2
Target Price: PKR 233.54

Indus Motor (INDU) – BUY 
Current Price: PKR 919.5
Target Price: PKR 1109.67

K-Electric (KEL) – BUY
Current Price: PKR 8.0
Target Price: PKR 13.7

Kohat Cement (KOHC) – BUY
Current Price: PKR 258.2
Target Price: PKR 323

Lucky Cement (LUCK) – BUY
Current Price: PKR 610.0
Target Price: PKR 652

MCB Bank Limited (MCB) – BUY 
Current Price: PKR 213.20
Target Price: PKR 268

National Bank (NBP) – BUY 
Current Price: PKR 52.24
Target Price: PKR 65.00

Nishat Chun Power (NCPL) – BUY 
Current Price: PKR 49.97
Target Price: PKR 63

Nishat Power Ltd (NPL) – BUY 
Current Price: PKR 50.92
Target Price: PKR 59

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 141.57
Target Price: PKR 160

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 416.0
Target Price: PKR 532

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 373.5
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 164.4
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. Salam
    Dr.Usman here
    I just wanted to appreciate your work.Your market research has been quite informative.

    I would like to thank you .


    ReplyDelete