Pakistan Stock Exchange (PSX) Weekly Analysis 25 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, PKGP, PPL, PSMC, PSO, PTC, TGL, and UBL.

Top gainers of last week were: PAKT, NRL, MUREB, PSEL, SCBPL, Tri-Star Modarba, Worldcall Telecom, Akzo Nobel Pak Ltd., Bank of Khyber, D.S.Ind.Ltd.
   
Top losers of last week were: GATM, AICL, RMPL, MCB, BAFL, Adamjee Ins. Co. Ltd., PICIC Growth Fund, Pak Elecktron Ltd.

Top ten volume leaders: KEL, DCL, PAEL, DFML, EFERT.

The Pakistan Stock Exchange (PSX) market fell 2 per cent in early trading on Friday, hurt by a global sell-off in risk assets after Britain voted to leave the European Union. KSE-100 index gained has reached on 37,390 by decreasing 1387 points or -3.58%. While KSE-30 index has reached on 21,347 by decreasing -1024 points or -4.58%.

Foreign participation remained under pressure, with foreigners selling US$20.6mn worth equities during the week against net buy of US$19.58mn last week.

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

• With Britain unpredictably voting in favor of the ‘Leave’ campaign, global markets came crashing down with Pound Sterling and Euro taking a massive hit along with Oil
• Besides one third foreign holding in free float, investors were concerned that Pakistan exports to UK will be affected after Brexit.
• The market remained in the correction mode throughout the week as MSCI euphoria fizzled out with Brexit jitters diverting attention towards global financial markets
• NA finalizing amendment in the Finance Bill 2016
• C/A for May’16 recording US$792mn vs.US$23 surplus in Apr’16
• WB approving US$1.02bn in developmental loans for Pakistan under the CGDPF and Sindh Resilience Project (SRP) while ADB approved US$100mn loan for construction of Shorkot‐Khanewal section of the M4 motorway 
• Tractor prices to drop by up to Rs80k after cut in ST
• In the monthly Fuel Charge Adjustment, National Electric Power Regulatory Authority (NEPRA) has announced reduction of Rs3.27/unit in fuel cost for the month of May. Consumers will receive the relief in their bills for the month of August. NEPRA cited lower than anticipated oil prices in international market as reason for negative FCA
• Investment in new plant, machinery: Provisions allowing tax credits being extended for 3 years

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 85.5
Target Price: PKR 120.00

Attock Petroleum (APL) – BUY 
Current Price: PKR 420.1
Target Price: PKR 580

Amreli Steels Ltd. (ASTL) – BUY 
Current Price: PKR 45.8
Target Price: PKR 83.0

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 24.8
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 182.6
Target Price: PKR 237.0

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 63.7
Target Price: PKR 79.6

Engro Corporation (ENGRO) – BUY
Current Price: PKR 330.4
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 35.7
Target Price: PKR 47

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 199.1
Target Price: PKR 255

Indus Motor (INDU) – BUY 
Current Price: PKR 908.4
Target Price: PKR 1109.67

K-Electric (KEL) – BUY
Current Price: PKR 7.8
Target Price: PKR 13

Kohat Cement (KOHC) – BUY
Current Price: PKR 253.1
Target Price: PKR 353

MCB Bank Limited (MCB) – BUY 
Current Price: PKR 221
Target Price: PKR 268

National Bank (NBP) – BUY 
Current Price: PKR 58
Target Price: PKR 65.00

Nishat Chun Power (NCPL) – BUY 
Current Price: PKR 51.7
Target Price: PKR 63

Nishat Power Ltd (NPL) – BUY 
Current Price: PKR 49.6
Target Price: PKR 59

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 135.8
Target Price: PKR 160.00

Pak Electron (PAEL) – BUY 
Current Price: PKR 63
Target Price: PKR 83

Pioneer Cement (PIOC) – BUY 
Current Price: PKR 103.1
Target Price: PKR 123.0

Pakgen Power Limited (PKGP) – BUY 
Current Price: PKR 22.8
Target Price: PKR 41.0

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 155.5
Target Price: PKR 193.8

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 378.5
Target Price: PKR 532

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 371.3
Target Price: PKR 450

Pakistan Telecommunications (PTC) – BUY 
Current Price: PKR 14.8
Target Price: PKR 21.9

Tariq Glass (TGL) – BUY 
Current Price: PKR 70.8
Target Price: PKR 120

United Bank Ltd (UBL) – BUY 
Current Price: PKR 171.11
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