Pakistan Stock Exchange (PSX) Weekly Analysis 5 Nov, 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: HBL, UBL, LUCK, PPL, Archroma Pak Ltd., ISL, MTL, SHEL, JSCL, SSGC.

Top losers of last week were: MUREB, COLG, ARM, CPPL, GHGL, Kohinoor Energy Ltd., PAKT

Top Volume Leaders of last week: BOP, KEL, SSGC, TRG, PACE.

The Pakistan Stock Exchange (PSX) market index jumped 4.94% WoW closing at an all‐time high of 41,842pts. KSE-100 index has reached on 41,842 by increasing 1969 points or 4.94 %.While KSE-30 index has reached on 22,751 by increasing 933 points or 4.28 %.

Average daily volumes augmented to ~484mn (+42% WoW) as end of the political stalemate attracted investors back into the market. BOP retained its position as the volume leader, trading ~222mn share during the week followed by KEL (~164mn) and TRG (~72mn).

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


  • Investors relieved by the cloud of political noise abating due to the Supreme Court verdict over Panama leaks inquiry
  • The Abraaj Group has announced that an Abraaj-controlled company, KES Power, has entered into a definitive agreement to divest its 66.4% shareholding in K-Electric to the Shanghai Electric Power Company Limited (SEP) for a consideration of US$1.77bn. This translates into a price of Rs10.14/share 
  • Petroleum Minister Shahid Khaqan Abbasi announced that the GoP has decided not to increase the natural gas tariff for any category of consumers because of a decline in the cost of producing gas
  • French automaker Renault has reportedly decided to start assembling cars in Pakistan by 2018 under the newly approved incentives announced in the Auto Investment Development Policy where Renault would enter the Pakistani market as a Joint Venture with GHNL, with plans to invest US$ 100 mn in Pakistan
  • The cut in sales tax on petroleum products rendered more than PkR20bn in revenue losses to the FBR during the last four months
  • Most of the rally was led by foreign investors and local mutual funds where large buying of US$21mn and US$28mn, respectively was observed by the two groups during the week
  • S&P Global Ratings raised its LT sovereign credit rating on Pakistan by one notch to ‘B’ from ‘B-‘. It is Pakistan’s highest rating since May 2008, when Pakistan was downgraded from ‘B+’ to ‘B’. The outlook on the rating has been kept stable 
  • Commercial banks remained in limelight adding 393pts as the stronger than consensus reading (+4.24pts) reaffirmed the view of an interest rate up cycle in the offing that would relieve pressure off NIMs
  • LUCK and PPL cumulatively contributed 161.7pts recovering on the back of value hunting
  • MTL contributed 63pts (+22% return in the week) to the benchmark index due on anticipation of an upsurge in local and export volumes
  • Foreigners and Mutual funds were net buyers mopping up shares worth of USD 21.05mn and 4.59mn in the outgoing week
  • First Chinese shipment rolls into Sost dry port in G-B First Chinese shipment rolls into Sost dry port in G-B (CPEC)


Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 104.75
Target Price: PKR 120

Attock Cement (ACPL) – BUY 
Current Price: PKR 256.02
Target Price: PKR 329

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 48
Target Price: PKR 60

DG Khan Cement (DGKC) – BUY 
Current Price: PKR 178.2
Target Price: PKR 216

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 63.90
Target Price: PKR 83

Engro Corporation (ENGRO) – BUY
Current Price: PKR 288
Target Price: PKR 361

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 34.35
Target Price: PKR 39

Fauji Cement Company Limited (FCCL) – BUY 
Current Price: PKR 36.49
Target Price: PKR 47

Fauji Fert Bin Qasim (FFBL) – BUY 
Current Price: PKR 48.3
Target Price: PKR 60

HUB Power CO (HUBCO) – BUY
Current Price: PKR 109.17
Target Price: PKR 121

Kot Adu Power Company (KAPCO) – BUY
Current Price: PKR 76.3
Target Price: PKR 116

K-Electric (KEL) – BUY
Current Price: PKR 9.4
Target Price: PKR 13

Kohat Cement (KOHC) – BUY
Current Price: PKR 246.10
Target Price: PKR 353

Lucky Cement (LUCK) – BUY
Current Price: PKR 710
Target Price: PKR 755

MCB Bank Limited (MCB) – BUY 
Current Price: PKR 221.55
Target Price: PKR 243

Maple Leaf Cement Factory (MLCF) – BUY 
Current Price: PKR 95.35
Target Price: PKR 122

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 142.62
Target Price: PKR 164

Pak Electron (PAEL) – BUY 
Current Price: PKR 69
Target Price: PKR 83

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 112.17
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 393.73
Target Price: PKR 441

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 153.99
Target Price: PKR 177

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 539.2
Target Price: PKR 661

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 406.37
Target Price: PKR 490

Pakistan Telecommunications (PTC) – BUY 
Current Price: PKR 17.66
Target Price: PKR 21.9

Tariq Glass (TGL) – BUY 
Current Price: PKR 90.8
Target Price: PKR 120

United Bank Limited (UBL) – BUY 
Current Price: PKR 214
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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