Pakistan Stock Exchange (PSX) Weekly Analysis 22 Aug, 2016

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

Top gainers of last week were: Punjab Oil, National Foods, Attock Refinery Ltd., Meezan Bank, Kot Addu Power Co., Pak Services, Allied Bank, Pak Oilfields, Pak Suzuki Motor and TRG Pakistan Ltd.

Top losers of last week were: Engro Corp, Allied Rental Mod, Dawood Hercules Chem, Indus Dyeing, Stand.Chart.Bank, Bank AL‐Habib, Ferozsons (Lab), Hub Power, Maple Leaf Cem. and Sui North Gas Pipe.

Top ten volume leaders: KEL, TRG, PAEL, SSGC, SNGP, BOP, NCL, BOP, PIBTL, EFERT, ATRL and ENGRO.

The Pakistan Stock Exchange (PSX) market witnessed profit taking during the outgoing week after crossing 40,000pts mark. KSE-100 index has reached on 39,499 by decreasing -409 points or -1.02 %.While KSE-30 index has reached on 22,566 by increasing -321 points or 1.40 %.

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

  • Cements (down 0.7% WoW on increasing coal prices and strong price run during 2016TD)
  • Fertilizers (down 2.6% WoW on increasingly weak outlook)
  • Banks (down 2.0% WoW on continuous foreign selling)
  • Gas Utilities (down 3.1% WoW after strong price run up) witnessing correction at high levels
  • A good chunk of volumes can also be attributed to continued buying interest in K-Electric (KEL) on rumors of potential stake acquisition by Chinese investors
  • KAPCO (+5.1%) emerged as star performer on expectations of clarity on PPA extension prior to its secondary public offering (SPO), contributing 36ppts to the index, moreover E&Ps (PPL, POL, OGDC) trekked rising international oil prices cumulatively contributing 91pts
  • Foreigners remained net sellers during the week, offloading USD 18mn worth of shares during the outgoing week
  • Volumes were mostly churned in retail darlings led by KEL, the Dewan triplets, TRG and PAEL as day traders and punters flocked to these stocks
  • Result announcements of big ticket names mostly led to profit booking as index heavy PSO, ENGRO and HBL all gave in to selling pressure
  • Islamic banks have emerged as lead financiers of housing projects at a time when conventional banks struggle to raise deposits for long‐term maturity leading to low lending levels
  • Economic Coordination Committee (ECC) of the Cabinet on Thursday approved the sale of imported urea available at the National Fertilizer Marketing Limited (NFML) at Rs 1310 per 50 kg bag on the recommendations of Finance Ministry

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY
Current Price: PKR 97.6
Target Price: PKR 120.00 

Attock Petroleum (APL) – BUY
Current Price: PKR 514.29
Target Price: PKR 580

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 29.0
Target Price: PKR 33

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 43.0
Target Price: PKR 68

ENGRO Fertilizer Limited (EFERT) – BUY
Current Price: PKR 67.6
Target Price: PKR 95

Engro Corporation (ENGRO) – BUY
Current Price: PKR 310.8
Target Price: PKR 362

Fatima Fertilizer (FATIMA) – BUY
Current Price: PKR 33.79
Target Price: PKR 48.68

Fauji Cement Company Limited (FCCL) – BUY
Current Price: PKR 37.4
Target Price: PKR 47

Habib Bank Limited (HBL) – BUY
Current Price: PKR 214.9
Target Price: PKR 255

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

Kohat Cement (KOHC) – BUY
Current Price: PKR 278.7
Target Price: PKR 353

MCB Bank Limited (MCB) – BUY
Current Price: PKR 208.5
Target Price: PKR 240

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 141.88
Target Price: PKR 172.00

Pak Electron (PAEL) – BUY
Current Price: PKR 73.8
Target Price: PKR 83

Pak Gen Power (PKGP) – BUY
Current Price: PKR 26.0
Target Price: PKR 41

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 168.0
Target Price: PKR 193.8

Pak Suzuki Motors (PSMC) – BUY
Current Price: PKR 445.2
Target Price: PKR 532

Pakistan State Oil (PSO) – BUY
Current Price: PKR 405.4
Target Price: PKR 456

Pakistan Telecommunications (PTC) – BUY
Current Price: PKR 15.6
Target Price: PKR 21.9

Tariq Glass (TGL) – BUY
Current Price: PKR 86.5
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

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