Pakistan Stock Exchange (PSX) Weekly Analysis 18 Sep, 2016

BUY recommendations are ABL, ASTL, DGKC, EFERT, EFOODS, ENGRO, FATIMA, FCCL, FFBL, HBL, INDU, KEL, KOHC, LUCK, MCB, MLCF, NCPL, NML, OGDC, PAEL, PIOC, PPL, PSMC, PSO, PTC and UBL.

Top gainers of last week were: BOP, FEROZ, SSGC, NATF, ICI.

Top losers of last week were: OGDC, UBL, SCBPL, FML, ASRL.

The Pakistan Stock Exchange (PSX) market index closed to an all-time high during the two-day working week due to Eid holidays, while the next week is likely to show mixed reaction by the investors. The benchmark KSE-100 index saw bearish activity on Thursday that was recovered with a few gains on Friday that resulted in an increase of 0.05 percent, or 23.45 points, during the week to 40,363.68 points against 40,340.23 points last week.

The average traded volume increased by 51 percent to 691 million shares from 457 million shares a day because of investors' interest in small- and mid-cap stocks, while average traded value fell by five percent week-on-week to Rs14 billion.

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


  • During the outgoing week, the market witnessed huge activity in small- and mid-cap stocks that resulted in surge of volumes by more than 60 percent to touch the highest volumes since last 11 years on Friday
  • Foreign Institutional Portfolio Investment (FIPI) recorded an outflow of $5.26 in two days as compared to the outflows of $7.06 million last week
  • Stocks in the oil and gas marketing sector witnessed net buying of $0.9 million during the week; net selling of $1.6$ million was seen in cement stocks
  • Automobile sector was among the top gainers, up 4.4 percent, after the release of auto numbers for August. This was followed by chemicals and pharmaceuticals, which increased 2.4 percent and 1.4 percent, respectively
  • Oil and gas exploration companies and commercial banks were among the losers, as they fell 1.5 percent and 0.8 percent, respectively
  • Pakistan officially became a signatory of the Organization for Economic Cooperation and Development’s (OECD) Multilateral Convention on Mutual Administrative Assistance in Tax Matters aimed at curbing tax evasion
  • Foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased 1.17 percent on a weekly basis on September 9
  • The SBP’s liquid foreign exchange reserves decreased $211 million to $17.8 billion as compared to $18 billion in the previous week
  • Remittances by overseas Pakistani workers have shown an increase of 15.3 percent year-on-year to $1.8 billion in August
  • In a bid to boost Islamic financing in the country, the central bank amended its regulations to exempt Islamic banks from using interest rate-based benchmarks for some of their financing products
  • The National Electric Power Regulatory Authority (Nepra) granted generation licence to China Power Hub Generation Company for their 1,320MW (660x2) coal-fired plant to be setup in Hub
  • On Friday WorldCall Telecom (WTL) led the volumes with over 114mn shares traded with average price of R2.83


Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 96
Target Price: PKR 120

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 66.15
Target Price: PKR 84.0

DG Khan Cement (DGKC) – BUY 
Current Price: PKR 188
Target Price: PKR 230

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 65
Target Price: PKR 95

ENGRO Foods (EFOODS) – BUY 
Current Price: PKR 142.92
Target Price: PKR 163

Engro Corporation (ENGRO) – BUY
Current Price: PKR 306
Target Price: PKR 361

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 33.04
Target Price: PKR 48.68

Fauji Cement Company Limited (FCCL) – BUY 
Current Price: PKR 37.23
Target Price: PKR 47

Fauji Fert Bin Qasim (FFBL) – BUY 
Current Price: PKR 52.06
Target Price: PKR 60.48

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 225.31
Target Price: PKR 255

K-Electric (KEL) – BUY
Current Price: PKR 9
Target Price: PKR 13

Kohat Cement (KOHC) – BUY
Current Price: PKR 250
Target Price: PKR 353

Lucky Cement (LUCK) – BUY
Current Price: PKR 660
Target Price: PKR 755

MCB Bank Limited (MCB) – BUY 
Current Price: PKR 213
Target Price: PKR 240

Maple Leaf Cement Factory (MLCF) – BUY 
Current Price: PKR 98
Target Price: PKR 123

Nishat Chun Power Lmited (NCPL) – BUY 
Current Price: PKR 56.49
Target Price: PKR 60

Nishat Mills Lmited (NML) – BUY 
Current Price: PKR 131
Target Price: PKR 144.8

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 139
Target Price: PKR 172

Pak Electron (PAEL) – BUY 
Current Price: PKR 73
Target Price: PKR 83

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 106.75
Target Price: PKR 136

Pakistan Petroleum Limited (PPL) – BUY 
Current Price: PKR 160.89
Target Price: PKR 193.8

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 538
Target Price: PKR 661

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 404
Target Price: PKR 456

Pakistan Telecommunications (PTC) – BUY 
Current Price: PKR 18
Target Price: PKR 21.9

United Bank Limited (UBL) – BUY 
Current Price: PKR 202
Target Price: PKR 235

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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