Pakistan Stock Exchange (PSX) Weekly Analysis 3 Oct, 2016

BUY recommendations are ABL, DGKC, EFERT, EFOODS, ENGRO, FCCL, FFBL, KEL, KOHC, LUCK, MCB, MLCF, OGDC, PAEL, PIOC, PSMC, PSO, PTC, UBL.

Top gainers of last week were: TRG Pakistan Ltd, B.O.Punjab, Indus Motor, Shell Pakistan, Pak Suzuki Motor, Jah.Sidd. Co., Sui South Gas, Nishat Mills Limited, Indus Dyeing and Punjab Oil.

Top losers of last week were: Associated Services Limited, Arif Habib Corp, Pakgen Power Ltd., Stand.Chart.Bank, Larpir Power Ltd, Nishat Power Ltd, EFU Life Assur Ltd., Pak.Int.Con.Ter., Feroz 1888 Mills Ltd and Meezan Bank.

Top Volume Leaders of last week: BOP, KEL, TRG, SSGC, JSCL, SNGP, NCL, PTC, PAEL, FATIMA, and NML.

The Pakistan Stock Exchange (PSX) market index resumed their solid bullish momentum this week to set new highs after closing at 40,542 (+1.91%WoW) primarily led by index heavy weights Oil space (+1.9%WoW) on higher international oil prices (Brent: +4.2%WoW) and SBP decision to keep interest rate unchanged. KSE-100 index has reached on 40,542 by increasing 760 points or 1.91 %.While KSE-30 index has reached on 22,436 by increasing 328 points or 1.49 %.

Average daily volumes for the week eased out a little, to average at 528.3mn shares vs. 727.8mn shares last week,

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


  • ICL launches new caustic soda IEM plant‐2 (Phase‐II) having capacity of 25k MT with a total project cost of ~PkR750mn
  • ICI revealed its plan to setup a facility in Pakistan to manufacture Morinaga infant formula products in partnership with Morinaga and Unibrands
  • Public announcement of offer to acquire 49.8mn ordinary shares of EFOODS by Friesland Campina at PkR151.85/sh
  • Executive Board of the IMF on Sep 28'16 completed the 12th review of Pakistan's 3yr economic reform program enabling the disbursement of the final tranche of about US$102mn 
  • China‐led Asian Infrastructure Investment Bank (AIIB) approved US$300mn loan to fund the expansion of a hydropower project in Pakistan
  • GoP planned to raise US$1bn from the international debt market through issuance of Sukuk in Oct'16
  • Foreigners were net sellers of US$8.6mn during the week
  • The later part of the week witnessed an erosion of gains seen earlier as India made tall claims of having conducted surgical strikes, which were later refuted by Pakistani officials 
  • Sazgar to invest Rs 330 million in production facility
  • PIA, PSM still on active privatisation list
  • ADB revises growth estimate upward to 5.2%
  • K‐Electric, the country’s premier integrated power company, on Tuesday unveiled a plan to add 4,283 megawatts to its generation capacity and improve average fleet efficiency to 43.3 percent from 37 percent over the next 10 years
  • Pakistan Credit Rating Agency has upgraded the long‐term entity rating of Bank of Punjab (BoP) to “AA” with short‐term highest rating of “A1+”
  • Thar coal project is progressing five months ahead of schedule and will add 660 megawatts of electricity to the national grid by 2019, SECMC CEO;


Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 98
Target Price: PKR 120

DG Khan Cement (DGKC) – BUY 
Current Price: PKR 185.9
Target Price: PKR 230

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 62
Target Price: PKR 95

ENGRO Foods (EFOODS) – BUY 
Current Price: PKR 146
Target Price: PKR 163

Engro Corporation (ENGRO) – BUY
Current Price: PKR 291.3
Target Price: PKR 361

Fauji Cement Company Limited (FCCL) – BUY 
Current Price: PKR 37
Target Price: PKR 47

Fauji Fert Bin Qasim (FFBL) – BUY 
Current Price: PKR 51.40
Target Price: PKR 60.48

K-Electric (KEL) – BUY
Current Price: PKR 9.2
Target Price: PKR 13

Kohat Cement (KOHC) – BUY
Current Price: PKR 257
Target Price: PKR 353

Lucky Cement (LUCK) – BUY
Current Price: PKR 677
Target Price: PKR 755

MCB Bank Limited (MCB) – BUY 
Current Price: PKR 221
Target Price: PKR 240

Maple Leaf Cement Factory (MLCF) – BUY 
Current Price: PKR 96
Target Price: PKR 123

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 141
Target Price: PKR 164

Pak Electron (PAEL) – BUY 
Current Price: PKR 71
Target Price: PKR 83

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 105.7
Target Price: PKR 136

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 579
Target Price: PKR 661

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 414
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 199
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

1 comment:

  1. Nice post, thanks for sharing with us.
    keep sharing more such kind of interesting articles. Thanks again.
    /Pakistan Railway Online Booking

    ReplyDelete