Pakistan Stock Exchange (PSX) Weekly Analysis 29 Oct, 2016

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

Top gainers of last week were: Philip Morris (Lakson Tobacco), Fauji Cement Company Ltd., Pioneer Cement, Maple Leaf Cem., Engro Fertilizer, Lucky Cement, K-Electric (KESC), Fauji Fertilizer Co, Nishat Chunian Power and ICI Pakistan.

Top losers of last week were: Shell Pakistan, B.O.Punjab, TRG Pakistan Ltd, Orix Leasing, Jah.Sidd. Co., Pak Tobacco Co, Cherat Packaging, Bestway Cement, Feroz 1888 Mills Ltd and Service Indus.

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

The Pakistan Stock Exchange (PSX) market index plummets amidst political uncertainty - index down 3.4%. KSE-100 index has reached on 39,873 by decreasing -1418 points or - 3.44 %.While KSE-30 index has reached on 21,818 by decreasing -671 points or -2.99 %.

The average daily turnover during the week came in at 341mn shares traded showing a notable decline of 28% W/W. Average value traded dropped by 22% clocking in at PKR11.5bn during the week, while volumes also took a plunge, declining by 28% on average relative to the previous week.

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


  • Fresh rounds of political sit-ins announced by PTI weighed down on PSX again as despite of reasonably strong result announcements, overall sentiments remained on the negative side
  • Amongst the major results during the week OGDC, HUBC, ASTL underperformed the street consensus, while MCB, MLCF, ZIL, CHCC, SAZEW & AICL posted strong quarterly readings
  • Foreigners & Banks remained net buyers mopping up shares worth USD14mn & 21mn respectively during the week
  • Massive selling was witnessed from Local Individuals (net US$35mn)
  • IMF Chief Lagarde saying Pakistan is out of economic crisis
  • China agreeing to give US$5.5bn loan for up gradation and dualization of Pakistan Railways
  • Reports of work on 7,000MW coal-based power plants may be abandoned
  • LSM growth of 1.49% YoY recorded in Aug-16 (+1.97% YoY in 2MFY17)
  • KAPCO privatization running into trouble as ambiguity continues over its power purchase agreement and coal policy
  • NEPRA approving refund of Rs2.77/unit under monthly fuel adjustment mechanism
  • Pak Suzuki Motor Company (PSMC) clarified that company does not have any plans to launch a new model over the next two years The further added that the investment is contingent on government offering the company the same incentives that were on the table for new entrants in the Auto Development Policy 2016-21  
  • The fertilizer sector remained in the limelight thanks to a court ruling that nullified GIDC, but the excitement was short lived as market players expect the GoP to file a review
  • The fertilizer sector reported results that were at par with expectations with positive surprises coming both from FFC and EFERT
  • Cement companies reported upbeat earnings driven by lower energy costs and higher dispatches, but rising coal prices in international markets kept the sector under check
  • The automobile space saw INDU’s result whizzing past estimates with a thick payout
  • The oil giant OGDC reported slightly higher than anticipated earnings, while power companies failed to excite sentiments despite of maintaining thick payouts in recently announced results 
  • The State Bank of Pakistan (SBP) will issue Rs10 regular coin from October 24, a statement said on Saturday. This coin will be issued through the exchange counters of all the field offices of the SBP Banking Services Corporation 
  • Pakistan’s LNG imports set to surge to 3bcf/day by 2018
  • Trucks production in the country rose 60 percent to 1,662 units in the first quarter of the fiscal year 2016/17 as against the production of 1,039 units a year ago
  • With gas shortages expected to hit consumers hard in the upcoming winter season, the government is set to shelve a plan of dedicated gas supply from new discoveries to a group of four fertilizer plants approved during the tenure of previous Pakistan Peoples Party (PPP) government, officials say

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 100
Target Price: PKR 120

Attock Cement (ACPL) – BUY 
Current Price: PKR 246.3
Target Price: PKR 329

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 46
Target Price: PKR 60

DG Khan Cement (DGKC) – BUY 
Current Price: PKR 171.8
Target Price: PKR 216

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 63.2
Target Price: PKR 83

Engro Corporation (ENGRO) – BUY
Current Price: PKR 280
Target Price: PKR 361

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 32.4
Target Price: PKR 38

Fauji Cement Company Limited (FCCL) – BUY 
Current Price: PKR 34.6
Target Price: PKR 47

Fauji Fert Bin Qasim (FFBL) – BUY 
Current Price: PKR 46.5
Target Price: PKR 60

HUB Power CO (HUBCO) – BUY
Current Price: PKR 107.31
Target Price: PKR 121

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 234.4
Target Price: PKR 353

Lucky Cement (LUCK) – BUY
Current Price: PKR 666
Target Price: PKR 755

MCB Bank Limited (MCB) – BUY 
Current Price: PKR 216
Target Price: PKR 240

Maple Leaf Cement Factory (MLCF) – BUY 
Current Price: PKR 91.2
Target Price: PKR 112

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 140.3
Target Price: PKR 164

Pak Electron (PAEL) – BUY 
Current Price: PKR 67.0
Target Price: PKR 83

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 105.9
Target Price: PKR 126

Pakgen Power (PKGP) – BUY 
Current Price: PKR 25.5
Target Price: PKR 40

Pakistan Oil Fields Limited (POL) – BUY 
Current Price: PKR 396.92
Target Price: PKR 441

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 148.4
Target Price: PKR 177

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 520.2
Target Price: PKR 661

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 406.1
Target Price: PKR 490

Pakistan Telecommunications (PTC) – BUY 
Current Price: PKR 16.6
Target Price: PKR 21.9

Tariq Glass (TGL) – BUY 
Current Price: PKR 82.7
Target Price: PKR 120

United Bank Limited (UBL) – BUY 
Current Price: PKR 200
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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