Pakistan Stock Exchange (PSX) Weekly Analysis 2 July, 2016

BUY recommendations are ABL, APL, 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: Bata (Pak) Ltd., Abbott Lab, Pak Tobacco Co, Stand.Chart.Bank, Service Indus, Thal Limited, Fatima Fert.Co., Kohinoor Textile, Arif Habib Corp and Saif Power Ltd.
   
Top losers of last week were: Feroz 1888 Mills Ltd, Rafhan Maize Prod., Jubilee Gen Ins, Associated Services Limited, Millat Tractors, Hum Network Ltd, Nishat Mills Limited, Allied Rental Mod, EFU Life Assur Ltd. and Muree Brewery Co Ltd.

Top ten volume leaders: KEL, TRG, SNGP, NML, EFERT, PAEL, PIBTL, HUBC, SSGC, JSCL and FATIMA.

The Pakistan Stock Exchange (PSX) market edged up by 1.1%WoW (up 394 pts) amidst thin volumes as aftershocks from Brexit subsided and sharp corrections gather attention of bargain hunters.

Volumes remained slim during the week amidst Ramadan snooze clocking in at 162mn shares slightly above (i.e. 4%) relative to the previous week. Retail favorites led the volume with KEL, DCL & TRG cumulatively accounting for 26% of the volumes.

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


  • Global equity markets remained under pressure in post Brexit week while massive terrorist activity at Turkey’s capital further dampened the investor’s sentiments
  • Foreign fund managers are still struggling to cope with global asset sell‐off as they remained net sellers with ~USD7.18mn outflow during the week
  • Cement manufacturers rose the cement prices by PKR35/bag in order to pass on the impact of change in FED calculation mechanism
  • International crude traded in a narrow range of USD 45.30 – 45.80/barrel while GBP dropped to historic low against USD
  • IMF successfully reviewed the country’s performance and approved the second last tranche under EFF facility of USD501mn while the review for last tranche of USD100mnis expected to be held in September ’16
  • Turnover stayed on lower side as penny stocks continued to churn majority of the volumes where KEL topped the chart with 108mn traded shares followed by TRG and SNGP with 29mn and 20mn traded shares respectively 
  • The super thrilling month of June ended on a positive note as index gained 4.78% during the month. The budget FY17 was largely a non‐event for local stock market whereas index took a deep drive in green zone on successful classification to MSCI EM in mid of the month 
  • All is set to give K-Electric under the control of Shanghai Powers. K‐Electric will see another change of owner as Shanghai Powers is said to have decided to buy it 
  • TPL Properties: Book‐building process for IPO raises PKR696.8mn
  • OGDCL has discovered gas from its Exploratory Well Thal West No 1, 100% owned by OGDCL located in District Sukkur, a company statement said
  • Oman Telecommunications Co (Omantel) said its board received a non‐binding offer for its controlling stake in Pakistan’s WTL from an investor whose identity it didn’t disclose
  • Money market remained tranquil in the shortened week in the absence of any auctions by the central bank


Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 89.96
Target Price: PKR 120.00

Attock Petroleum (APL) – BUY 
Current Price: PKR 437.54
Target Price: PKR 580

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 25.57
Target Price: PKR 32

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 43.12
Target Price: PKR 68

DG Khan Cement (DGKC) – BUY 
Current Price: PKR 190
Target Price: PKR 237.0

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 64.48
Target Price: PKR 106.49

Engro Corporation (ENGRO) – BUY
Current Price: PKR 333.0
Target Price: PKR 362.00

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 33.94
Target Price: PKR 41

Fauji Cement Company Limited (FCCL) – BUY 
Current Price: PKR 35.80
Target Price: PKR 42.35

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 197.56
Target Price: PKR 233.54

Indus Motor (INDU) – BUY 
Current Price: PKR 939.54
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 261.9
Target Price: PKR 353

MCB Bank Limited (MCB) – BUY 
Current Price: PKR 220
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 52.56
Target Price: PKR 63

Nishat Power Ltd (NPL) – BUY 
Current Price: PKR 50.51
Target Price: PKR 59

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 138.07
Target Price: PKR 160.00

Pak Electron (PAEL) – BUY 
Current Price: PKR 64.7
Target Price: PKR 83

Pioneer Cement (PIOC) – BUY 
Current Price: PKR 107.4
Target Price: PKR 123.0

Pakgen Power Limited (PKGP) – BUY 
Current Price: PKR 24.1
Target Price: PKR 41.0

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 155
Target Price: PKR 193.8

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 382.15
Target Price: PKR 532

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 375.5
Target Price: PKR 450

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

Tariq Glass (TGL) – BUY 
Current Price: PKR 74.0
Target Price: PKR 120

United Bank Ltd (UBL) – BUY 
Current Price: PKR 176.92
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

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