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

BUY recommendations are ABL, BAHL, DGKC, EFERT, ENGRO, FATIMA, FCCL, FFBL, KAPCO, KEL, KOHC, LUCK, MCB, MLCF, OGDC, PAEL, PIOC, PKGP, PSMC, PSO, PTC, TGL and UBL.

Top gainers of last week were: Attock Petroleum, Sui North Gas Pipe., B.O.Punjab, Ghani Glass Ltd, Hum Network Ltd, Pak Services, Hascol Petroleum Ltd, Sui South Gas, Nestle Pakistan and Philip Morris (Lakson Tobacco).

Top losers of last week were: International Steels Ltd, Orix Leasing, Muree Brewery Co Ltd, Bestway Cem, Maple Leaf Cem., Cherat Cement, Jah.Sidd. Co., Shifa International Hospitals, EFU General Ins and Feroz 1888 Mills Ltd.

Top Volume Leaders of last week: BOP, TRG, KEL, SSGC, SNGP, JSCL, PIBTL, PAEL, HUMNL, AKBL, and FCCL.

The Pakistan Stock Exchange (PSX) market, overall sentiments remained mixed at the bourse with market struggling to break 42k level. As a result, the index ended down 0.4% WoW to close at 41,291pts. KSE-100 index has reached on 41,291 by decreasing -173 points or -0.42 %.While KSE-30 index has reached on 22,489 by decreasing -152 points or -0.67 %.

Average daily volume augmented by 17%WoW to 472mn primarily on the back of low base (Ashura Holidays in the previous week) where second and third tier stocks topped the volumes charts. BOP continue to be the preferred pick for market participants where it solely contributed 14% (or 289mn) of total trading activity followed by TRG (~119mn) and PACE (~82mn).

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


  • Foreigners turned net sellers offloading shares worth of USD 8.64mn during the outgoing week
  • Current account deficit for Sep’16 recorded at US$161mn vs. US$612mn in the previous month taking 1QFY17 cumulative deficit to US$1.36bn, up 136%YoY
  • All PIB bids were rejected in the latest auction amid weak participation (PkR75bn vs. PkR100bn target) as banks bid at higher yields
  • Expected approval of relief package worth ~PkR200bn for export players, particularly targeting the textile sector
  • Atlas Honda Limited (AHL) announced expansion with a second production line at its Sheikhupura plant to increase assembly capacity to 1.2mn units from its original 600k units
  • MLCF planning to setup a 40MW coal‐fired power plant to fuel its cement manufacturing operations where the company will generate funds worth PkR5.5bn for the project from its own resources
  • Market performance is likely to be dominated by earnings announcement from major sectors next week, including Banks (MCB, NBP, BAFL), Cement (MLCF, PIOC,LUCK, DGKC, FCCL), Fertilizer (FFBL, EFERT, FFC, ENGRO) and Autos (PSMC, INDU). Additionally, announcement of the anticipated textile package is likely to prop up performance in the sector  
  • Gul Ahmed Wind Power Limited commenced generation from its 50MW plant located in the Thatta district. The project will distribute electricity as an IPP to the Central Power Purchaser Agency. The project aims to provide a sustainable tariff at a fixed price for 20 years
  • Total seed cotton (phutti) to reach ginneries has been estimated at over 4.3mn bales, which has marked a decrease of 6.2% over last year. Total decline in cotton seed arrival in the Punjab province was recorded at approximately 9.0% YoY, while the Sindh province also witnessed a decline of 3.8% YoY 
  • The country’s exports declined by 10.60 percent in September 2016 compared to the same month last fiscal year, Pakistan Bureau of Statistics reported
  • The ground-breaking ceremony of the $2 billion North-South gas pipeline project is likely to be in December this year, said officials on Tuesday
  • Country's fourth nuclear power plant at Chashma Unit-3 (C-3) with 340 Megawatt (MW) power generation capacity, has been successfully connected to the national grid, Pakistan Atomic Energy Commission (PAEC) revealed to APP on Sunday 
  • Government extends tax holiday for shipping industry up to 2030


Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 103
Target Price: PKR 120

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 47.77
Target Price: PKR 60

DG Khan Cement (DGKC) – BUY 
Current Price: PKR 175.9
Target Price: PKR 216

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 62.5
Target Price: PKR 83

Engro Corporation (ENGRO) – BUY
Current Price: PKR 291.1
Target Price: PKR 361

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 33
Target Price: PKR 38

Fauji Cement Company Limited (FCCL) – BUY 
Current Price: PKR 33.9
Target Price: PKR 47

Fauji Fert Bin Qasim (FFBL) – BUY 
Current Price: PKR 50.3
Target Price: PKR 60.48

Kot Adu Power Company (KAPCO) – BUY
Current Price: PKR 76.7
Target Price: PKR 116

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

Kohat Cement (KOHC) – BUY
Current Price: PKR 240
Target Price: PKR 353

Lucky Cement (LUCK) – BUY
Current Price: PKR 665
Target Price: PKR 755

MCB Bank Limited (MCB) – BUY 
Current Price: PKR 220.33
Target Price: PKR 240

Maple Leaf Cement Factory (MLCF) – BUY 
Current Price: PKR 89.9
Target Price: PKR 112

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 146.25
Target Price: PKR 164

Pak Electron (PAEL) – BUY 
Current Price: PKR 71.7
Target Price: PKR 83

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 104
Target Price: PKR 126

Pakgen Power (PKGP) – BUY 
Current Price: PKR 25.9
Target Price: PKR 40

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 577.8
Target Price: PKR 661

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 415.7
Target Price: PKR 490

Pakistan Telecommunications (PTC) – BUY 
Current Price: PKR 17.5
Target Price: PKR 21.9

Tariq Glass (TGL) – BUY 
Current Price: PKR 92.9
Target Price: PKR 120

United Bank Limited (UBL) – BUY 
Current Price: PKR 204
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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