Pakistan Stock Exchange (PSX) Weekly Analysis 20 June, 2016

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

Top gainers of last week were: Habib Bank Ltd, Stand.Chart.Bank, MCB Bank Ltd, Bank Al‐Falah, United Bank, Maple Leaf Cem., National Bank of Pak, Ibrahim Fibres, Cherat Cement and Dawood Hercules Chem.

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, PIBTL, EFERT, TRG, PAEL, FCCL, PTC, SNGP, HBL, DGKC and NML.

The Pakistan Stock Exchange (PSX) market ended on a strong note, settling at record high level of 38,776pts (?5%) in the outgoing week with market participants skidded upward on major development of Pakistan equity reclassification into MSCI EM after nearly a decade when it was removed in 2008. KSE-100 index gained  has reached on 38,777 by increasing 1836 points or 4.97%. While KSE-30 index has reached on 22,371 by increasing 1441 points or 6.88%.

Market participation surged 10% WoW with daily average trading volume reaching close to 183mn shares while trading in top five scripts i.e, KEL, PIBTL, EFERT, TRG and PAEL constituted ~34% of total weekly volumes. As oppose to recent foreign flows trend, this week foreigner remained net buyer, accumulating USD19.59mn worth of shares as oppose to previous week USD7.85mn worth of sales.

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

  • In a positive development, MSCI said its Pakistan Index will be reclassified to the Emerging Markets status, coinciding with the May 2017 Semi Annual Index Review. Its decision is to upgrade the country from the Frontier Markets status is expected to generate inflows of global portfolio investment amounting to USD475mn
  • A proposed merger between the Picic Insurance Ltd and the CSIL has fallen apart after the latter became disillusioned by Picic’s balance sheet during due diligence
  • Banking sector remained the best performing sector during the week, posting 13.1% return during the week with HBL, MCB and UBL posting double digit return of 20.9%, 14.8% and 12% respectively. Furthermore, HBL, MCB and UBL cumulatively added 901pts in the index
  • DAWH accumulated 97pts on the back of substantial holding in ENGRO, another MSCI EM constituent, to help remain scrip in the limelight
  • Cement domestic demand increases by 17.84pc in 11 months
  • The National Assembly’s Standing Committee on Finance on Tuesday recommended the government to withdraw general sales tax (GST) on tractors and maintain subsidy on DAP fertilizer at Rs500 instead of Rs250 per bag, as announced in the budget
  • Al-Shaheer Corporation (ASC) and Shell Pakistan (SHEL) have signed a Memorandum of Understanding (MoU) for collaboration in their retail business in Pakistan. The two parties are assessing the opportunities for having Meat One branded shops, chillers and products across ~700 plus SHEL retail sites across the country
  • National Assembly Standing Committee on Finance recommended 7 key amendments in Finance Bill 2016 that includes maintenance of zero‐rating sales tax regime on dairy and milk products

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY
Current Price: PKR 90.79
Target Price: PKR 135.00 

Attock Petroleum (APL) – BUY
Current Price: PKR 427.13
Target Price: PKR 580

Amreli Steels Ltd. (ASTL) – BUY
Current Price: PKR 47.0
Target Price: PKR 83.0

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 27.75
Target Price: PKR 32

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 42.00
Target Price: PKR 68

DG Khan Cement (DGKC) – BUY
Current Price: PKR 189.4
Target Price: PKR 237.0

ENGRO Fertilizer Limited (EFERT) – BUY
Current Price: PKR 66.58
Target Price: PKR 95

Engro Corporation (ENGRO) – BUY
Current Price: PKR 347.76
Target Price: PKR 362.00

Fatima Fertilizer (FATIMA) – BUY
Current Price: PKR 31.18
Target Price: PKR 41

Fauji Cement Company Limited (FCCL) – BUY
Current Price: PKR 35.13
Target Price: PKR 47

Habib Bank Limited (HBL) – BUY
Current Price: PKR 210.5
Target Price: PKR 255

Indus Motor (INDU) – BUY
Current Price: PKR 939.88
Target Price: PKR 1109.67

K-Electric (KEL) – BUY
Current Price: PKR 8.1
Target Price: PKR 13

Kohat Cement (KOHC) – BUY
Current Price: PKR 265.4
Target Price: PKR 353

MCB Bank Limited (MCB) – BUY
Current Price: PKR 244.82
Target Price: PKR 268

National Bank (NBP) – BUY
Current Price: PKR 58.10
Target Price: PKR 65.00

Nishat Chun Power (NCPL) – BUY
Current Price: PKR 52.13
Target Price: PKR 63

Nishat Power Ltd (NPL) – BUY
Current Price: PKR 50.28
Target Price: PKR 59

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 142.97
Target Price: PKR 172.00

Pak Electron (PAEL) – BUY
Current Price: PKR 64
Target Price: PKR 83

Pioneer Cement (PIOC) – BUY
Current Price: PKR 107.41
Target Price: PKR 123.0

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 159.5
Target Price: PKR 193.8

Pak Suzuki Motors (PSMC) – BUY
Current Price: PKR 404.75
Target Price: PKR 532

Pakistan State Oil (PSO) – BUY
Current Price: PKR 394
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 184.11
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

1 comment:

  1. Thank you khuram bhaee. Please kam qeemat wale share Par bhi apna tajzea zaroor Dia Karin shukria. Rafaqat Hussain.

    ReplyDelete