Pakistan Stock Exchange (PSX) Weekly Analysis 15 Oct, 2016

BUY recommendations are ABL, BAFL, DGKC, EFERT, EFOODS, ENGRO, FCCL, FFBL, FFC, HBL, HCAR, KEL, KOHC, LUCK, MCB, MLCF, OGDC, PAEL, PIOC, PKGP, PSMC, PSO, PTC, TGL and UBL.

Top gainers of last week were: Atlas Honda Ltd, B.O.Punjab, Askari Bank Ltd. Shell Pakistan, Bank Alfalah Ltd, Kohinorr Industries Ltd., Security Leasing Corp. Ltd., Tristar Polyester Ltd., Kohinoor Spinning Mills Ltd., and Leather Up Industries Ltd.

Top losers of last week were: SSGC, Service Ind., Hum Network Ltd., Atlas Battery Ltd., Fatima Fertilizer, Safa Textiles Ltd., First Capital Securities Corp. Ltd., Quetta Textile Mills Ltd., Dost Steels Ltd., and EMCO Industries Ltd.

Top Volume Leaders of last week: BOP, TRG, ASL, JPGL, and BAFL.

The Pakistan Stock Exchange (PSX) market index resumed its northbound journey to set yet another all‐time high of 41,464. KSE-100 index has reached on 41,464 by increasing 264 points or 0.64 %.While KSE-30 index has reached on 22,641 by decreasing -23 points or -.10 %.

Average daily volumes fell to ~403mn (-33% WoW) primarily due to mid-week Ashura holidays. BOP retained its position as the volume leader, trading ~132mn shares followed by TRG (~50mn) and ASL (~48mn). Foreigners were net buyers mopping up shares worth of USD 2.24mn in the outgoing week


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


  • IMF’s call for Pak Rupee (PKR) devaluation against the US Dollar (USD) to keep exports competitive
  • New deadlines set by the government for privatizing Pakistan Steel Mills (PSM) and Pakistan International Airlines (PIA) as Jun’17 and Aug’17, respectively
  • The Oil and Gas Regulatory Authority (OGRA) stated that it had not proposed any increase in gas prices for either the domestic sector or for the fertilizer feedstock
  • Chinese investors keen to invest in troubled businesses where negotiations are underway with some banks and a cement company
  • China will help Pakistan in rehabilitation and expansion of its railway system starting with 1,700km Karachi-Peshawar track at the cost of US$8bn that is expected to be completed in 5 years
  • Commercial banks continued to remain in limelight adding 89pts to the index with investors seeking value in relatively undervalued banking scrips including BAHL (+4.4%; +28pts), BAFL (+5.7%; +23pts) and MCB (+1%; +19pts) which cumulatively contributed ~70pts to index. On the other hand, profit taking was witnessed in UBL (-1.5%; -29pts) and HBL (-0.3%; - 8pts)
  • Moreover, the oil sector added ~65pts to the index as global oil prices spiked up following Russia's statement of possibility of joining OPEC. Top performers in the sector included OGDC (+1.8%, +31.3pts) and HASCOL (+7.8%, +20.5pts)


Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 102.4
Target Price: PKR 120

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 30
Target Price: PKR 33

DG Khan Cement (DGKC) – BUY 
Current Price: PKR 185
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 297.8
Target Price: PKR 361

Fauji Cement Company Limited (FCCL) – BUY 
Current Price: PKR 34.9
Target Price: PKR 47

Fauji Fert Bin Qasim (FFBL) – BUY 
Current Price: PKR 51.7
Target Price: PKR 60.48

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 104
Target Price: PKR 120

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 221.6
Target Price: PKR 255

Honda Atlas Cars (HCAR) – BUY 
Current Price: PKR 592
Target Price: PKR 710

K-Electric (KEL) – BUY
Current Price: PKR 9.1
Target Price: PKR 13

Kohat Cement (KOHC) – BUY
Current Price: PKR 251.3
Target Price: PKR 353

Lucky Cement (LUCK) – BUY
Current Price: PKR 698
Target Price: PKR 755

MCB Bank Limited (MCB) – BUY 
Current Price: PKR 226
Target Price: PKR 240

Maple Leaf Cement Factory (MLCF) – BUY 
Current Price: PKR 96.2
Target Price: PKR 112

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 145
Target Price: PKR 164

Pak Electron (PAEL) – BUY 
Current Price: PKR 70.4
Target Price: PKR 83

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 108
Target Price: PKR 136

Pakgen Power (PKGP) – BUY 
Current Price: PKR 26.2
Target Price: PKR 40

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 580
Target Price: PKR 661

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 419.2
Target Price: PKR 490

Pakistan Telecommunications (PTC) – BUY 
Current Price: PKR 18.0
Target Price: PKR 21.9

Tariq Glass (TGL) – BUY 
Current Price: PKR 94.1
Target Price: PKR 120

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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