Pakistan Stock Exchange (PSX) Weekly Analysis 1 Aug, 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: Feroze1888, Shell Pakistan, Gul Ahmed Textile Mills, Nishat (Chunian) Limited, Pak Services and Lucky Cement, NML, and ABL.

Top losers of last week were: Associated Services  Limited,  Pakistan Oilfields,  Pak  Suzuki  Motors,  Lalpir  Power  Limited,  PPL, OGDC, EPCL, and  International  Steel.

Top ten volume leaders: DCL, AGL, SNGP, DFML, BYCO, PIBTL and TRG.

The Pakistan Stock Exchange (PSX) market index gained 1.36% WoW closing at 39,685pts (up 533pts) with volumes increasing 4% WoW, with the benchmark index closing the month 4.62% (up 1,745pts). KSE-100 index has reached on 39,529 by increasing 377 points or 0.96%.While KSE-30 index has reached on 22,743 by increasing 113 points or 0.50%.

Volumes tapered slightly during the week to avg. at 182mn shares vs. 207.1mn for the previous week. Foreign participation however improved with inflows of US$10.94mn compared to outflows of US$11.5mn last week.

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

  • SBP keeps interest rate unchanged at 5.75% in the announcement of Monetary Policy
  • The Foreign Institutional Portfolio Investment (FIPI) witnessed an inflow of US$10.94mn during the week vs US$11.49mn outflow last week, whereas the average volume traded changed by -11.7% WoW and the value of shares traded decreased by 20.6% WoW
  • The Government of Pakistan and IMF commenced staff level discussions for the twelfth and last review under the EFF program
  • Pakistan and Russia to start negotiations for laying 1,100km LNG pipeline with an estimated cost of US$2bn next week where first phase of the project is planned for completion by Dec’17
  • ECC allowed BAFL to remit US$27.2mn to set up branch in UAE
  • DRAP approved price increments for scheduled drugs, non‐scheduled drugs and lower priced drugs by 1.43%, 2.02% and 2.86% respectively under the Drug Pricing Policy
  • Mari Petroleum’s Managing Director stated that the company plans to establish a 400MW power plant at Dharki/Sadiqabad with an estimated cost of US$400mn
  • Earnings season is likely to be the guiding factor over the near term with key results likely to be announced in the coming month. On the global front, further decline in int’l crude oil prices can keep pressure on the Oil & Gas sector

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY
Current Price: PKR 89.3
Target Price: PKR 135.00 

Attock Petroleum (APL) – BUY
Current Price: PKR 477.3
Target Price: PKR 580

Amreli Steels Ltd. (ASTL) – BUY
Current Price: PKR 55.4
Target Price: PKR 83.0

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 27.3
Target Price: PKR 32

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 44
Target Price: PKR 68

DG Khan Cement (DGKC) – BUY
Current Price: PKR 210
Target Price: PKR 237.0

ENGRO Fertilizer Limited (EFERT) – BUY
Current Price: PKR 68.6
Target Price: PKR 95

Engro Corporation (ENGRO) – BUY
Current Price: PKR 335
Target Price: PKR 362

Fatima Fertilizer (FATIMA) – BUY
Current Price: PKR 33.2
Target Price: PKR 41

Fauji Cement Company Limited (FCCL) – BUY
Current Price: PKR 37.7
Target Price: PKR 47

Habib Bank Limited (HBL) – BUY
Current Price: PKR 217.5
Target Price: PKR 255

Indus Motor (INDU) – BUY
Current Price: PKR 1,086
Target Price: PKR 1109.67

K-Electric (KEL) – BUY
Current Price: PKR 8.2
Target Price: PKR 13

Kohat Cement (KOHC) – BUY
Current Price: PKR 276.2
Target Price: PKR 353

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

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 136.5
Target Price: PKR 160.00

Pak Electron (PAEL) – BUY
Current Price: PKR 71.7
Target Price: PKR 83

Pak Gen Power (PKGP) – BUY
Current Price: PKR 25.4
Target Price: PKR 41

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 157.2
Target Price: PKR 193.8

Pak Suzuki Motors (PSMC) – BUY
Current Price: PKR 401.6
Target Price: PKR 532

Pakistan State Oil (PSO) – BUY
Current Price: PKR 417.1
Target Price: PKR 456

Pakistan Telecommunications (PTC) – BUY
Current Price: PKR 16.5
Target Price: PKR 21.9

Tariq Glass (TGL) – BUY
Current Price: PKR 83.2
Target Price: PKR 120

United Bank Ltd (UBL) – BUY
Current Price: PKR 185
Target Price: PKR 212

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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