Pakistan Stock Exchange (PSX) Weekly Analysis 14 Aug, 2016

BUY recommendations are ABL, APL, ASTL, BAFL, BAHL, DGKC, EFERT, ENGRO, FATIMA, FCCL, HBL, KEL, KOHC, MCB, OGDC, PAEL, PKGP, PPL, PSMC, PSO, PTC, and TGL.

Top gainers of last week were: EFU General Ins, Bannu Woollen, United Bank, Attock Petroleum, B.O.Punjab, Honda Atlas Cars, Pak Oilfields, Habib Metro Bank, Faysal Bank, International Steels Ltd.

Top losers of last week were: Feroz 1888 Mills Ltd, P.T.C.L.A, Kohinoor Textile, Pak Tobacco Co, MCB Bank Ltd, IGI Insurance, Soneri Bank, EFU Life Assur Ltd., Jah.Sidd.Co., Nishat Chunian.

Top ten volume leaders: KEL, BOP, EFERT, SSGC, PAEL, SNGP, JSCL TRG, PTC, BAFL and UBL.

The Pakistan Stock Exchange (PSX) market remained bullish during the week briefly crossing the psychological barrier of 40,000 during intraday on Friday however profit taking during the last few hours of the trading session paired the gains as market closed at 39,908pts, up 1.2% WoW. KSE-100 index has reached on 39,908 by increasing 518 points or 1.31 %.While KSE-30 index has reached on 22,887 by increasing 324 points or 1.43 %.

Average daily volumes witnessed a 18% increase, clocking in at 265.1 million shares. On the other hand, average daily values climbed 5%, to Rs11.4 billion/$109.3 million. Foreigners remained net sellers during the week, offloading $1.0 million worth of shares during the outgoing week.

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

  • Oils gained on the back of international prices going up and local giants such as Pakistan Petroleum Limited (+4.9%) and Oil and Gas Development Limited (+3.0%) contributing 70 points and 49 points, respectively. The sector overall was up 3.7%
  • Banks contributed mainly on the back of institutional buying as reactions on corporate results. UBL (+8.1%) emerged as a key performer during the week, contributing 144 points to the index with continued exuberance post its 1H2016 financial results that outperformed market consensus. HBL also (+3.3%) tagged along with overall gains in the sector (+2.5%)
  • Cement sector gained 2.3% week-on-week as it reacted positively to better than expected off-take numbers
  • Increased activity was also witnessed in auto sector on the back of monthly car sales data and yen’s movement
  • The mergers and acquisitions canvas was bursting with excitement as MCB/NIB deal and KEL’s acquisition remained at the heart of the rumour mill
  • One of the most active stocks of the week was K-Electric (KEL) as it dominated the volume charts. KEL was a major contributor towards the traded volume especially on Thursday as rumour of its acquisition by Shanghai Electric and Engro Corporation were making rounds
  • Remittances plunged 20% in July
  • Banking transactions 0.4% WHT applicable till 31’Aug-16 
  • Cement sales jump 12.38% in July
  • Oil sales grow by a 10-yr high of 22% in July
  • Dewan Farooq Motors Ltd (DFML) has applied for revival of their plant situated in Sujawal under the incentives given for revival of closed units in the Automotive Development Policy (ADP) 2016 ‐ 21
  • PSO, the country's biggest oil marketing firm, imported 42 cargos carrying 133,307,087mmbtu of LNG since Mar'15 to meet growing energy requirements

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY
Current Price: PKR 93.52
Target Price: PKR 135.00 

Attock Petroleum (APL) – BUY
Current Price: PKR 500.73
Target Price: PKR 580

Amreli Steels Ltd. (ASTL) – BUY
Current Price: PKR 56.0
Target Price: PKR 83.0

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 29.45
Target Price: PKR 32

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 44.85
Target Price: PKR 68

DG Khan Cement (DGKC) – BUY
Current Price: PKR 206.28
Target Price: PKR 237.0

ENGRO Fertilizer Limited (EFERT) – BUY
Current Price: PKR 69.21
Target Price: PKR 95

Engro Corporation (ENGRO) – BUY
Current Price: PKR 334.84
Target Price: PKR 362

Fatima Fertilizer (FATIMA) – BUY
Current Price: PKR 34.61
Target Price: PKR 41

Fauji Cement Company Limited (FCCL) – BUY
Current Price: PKR 38.54
Target Price: PKR 47

Habib Bank Limited (HBL) – BUY
Current Price: PKR 225.35
Target Price: PKR 255

K-Electric (KEL) – BUY
Current Price: PKR 8.7
Target Price: PKR 13

Kohat Cement (KOHC) – BUY
Current Price: PKR 268.36
Target Price: PKR 353

MCB Bank Limited (MCB) – BUY
Current Price: PKR 215.04
Target Price: PKR 268

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 139.49
Target Price: PKR 160.00

Pak Electron (PAEL) – BUY
Current Price: PKR 73.89
Target Price: PKR 83

Pak Gen Power (PKGP) – BUY
Current Price: PKR 25.5
Target Price: PKR 41

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 164.24
Target Price: PKR 193.8

Pak Suzuki Motors (PSMC) – BUY
Current Price: PKR 430.39
Target Price: PKR 532

Pakistan State Oil (PSO) – BUY
Current Price: PKR 411.36
Target Price: PKR 456

Pakistan Telecommunications (PTC) – BUY
Current Price: PKR 15.2
Target Price: PKR 21.9

Tariq Glass (TGL) – BUY
Current Price: PKR 89.52
Target Price: PKR 120

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. What about the thought that maybe cash flows (dividends + stock buybacks, as you define them) are so high because stock buybacks are at all time highs - which in turn have been fueled by ultra-low interest rates themselves.
    Karachi Stock Exchange 100 Index

    ReplyDelete