Pakistan Stock Exchange (PSX) Weekly Analysis 26 Nov, 2016

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

Top gainers of last week were: Indus Dyeing, Bestway Cement, Service Indus, Nishat Chunian, Feroz 1888 Mills Ltd, Associated Services Limited, Nishat Mills Limited, Hascol Petroleum Ltd, IGI Insurance and Packages Limited.

Top losers of last week were: Sui South Gas, Philip Morris (Lakson Tobacco), Cherat Packaging, Meezan Bank, Allied Rental Mod, National Refinery, Pak.Int.Con.Ter., Indus Motor, Askari Bank Ltd. and Faysal Bank.

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

The Pakistan Stock Exchange (PSX) market index, Locals’ bulls continue to beat foreign bears – Index up 1.6% WoW. KSE-100 index has reached on 43,000 by increasing 675 points or 1.59 %.While KSE-30 index has reached on 23,145 by increasing 369 points or 1.62 %.

Average daily trading volume slightly increased by 4% WoW to average at 475mn shares. Foreigners remained net sellers of US$37mn worth of equities mainly due to flight of capital towards developed markets from Frontier and Emerging economies amidst strengthening of the US Dollar.

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


  • State Bank has announced the Monetar Policy and keep the discount rate unchanged i.e. 5.75 for two months
  • Foreign selling continued unabated during the week as well, it was largely restricted to side board items with strong local liquidity pushed index to close at an all-time high
  • Foreign selling continued during the week as well with foreigners offloading USD37.0mn worth of shares compared to net sell of USD9.4mn in the preceding week
  • ECC’s approval of reduction in gas prices for industrial consumers by PkR200/mmbtu
  • Oil stocks rallied on the back of surge in international oil prices, which surged more than +5% during the week as prospects of a possible supply cut deal being brokered in the upcoming OPEC meeting turned high. OGDC (+4.0%), PPL (+4.0%) and POL (+6.2%) drove the major gains in the index
  • State Bank sells Rs290bln MTBs; yields largely remain flat
  • July-October current account deficit up 63 percent YoY
  • Summit Bank Limited announcing to conduct the due diligence of Sindh Bank Limited for potential merger/acquisition
  • The price of steel bars has gone up by Rs8,000-Rs10,000 per tonne after the fire incident at the Gadani ship-breaking yard last month that claimed at least 19 lives
  • China to make extra $8.5 billion investments in Pakistan, says Ahsan Iqbal
  • Dewan Cement (DCL) announced today on Pakistan Stock Exchange (PSX) that the sponsor is exploring the possibility of selling 51% stake to a foreign entity in parallel with the possibility of sale of the north plant located at Haripur, Khyber Pakhtunkhwa
  • There is an inconsistency of over Rs 19 billion in the subsidy for urea and DAP in the current fiscal year between what was budgeted by the Ministry of Finance and what is in documents of the Ministry of National Food, Security and Research (MNFS&R) 
  • The Yunus Brothers Group (YBG) is in talks with South Korea’s Kia Motors Corporation to set up an auto assembly facility in Pakistan. The sponsor of Lucky Cement and ICI Pakistan, YBG is in the initial phase of negotiations with the South Korean company and few details are available so far 
  • PIA concluded a financing facility of US$130mn
  • T‐bills yields in the recent auction remained flat at 5.9463%, 5.9471% and 5.9463% for 3m, 6m and 12m respectively
  • Release of disappointing Large Scale Manufacturing numbers (+2.2% YoY in 1QFY17, +1.9% YoY in Sept-16)


Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 104
Target Price: PKR 120

Attock Cement (ACPL) – BUY 
Current Price: PKR 315
Target Price: PKR 340

Al Shaheer Corpporation Ltd. (ASC) – BUY 
Current Price: PKR 52
Target Price: PKR 82

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 33
Target Price: PKR 38

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 50
Target Price: PKR 60

DG Khan Cement (DGKC) – BUY 
Current Price: PKR 191
Target Price: PKR 216

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 64.6
Target Price: PKR 83

Engro Corporation (ENGRO) – BUY
Current Price: PKR 293.5
Target Price: PKR 361

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 34
Target Price: PKR 39

Fauji Cement Company Limited (FCCL) – BUY 
Current Price: PKR 38.9
Target Price: PKR 47

Fauji Fert Bin Qasim (FFBL) – BUY 
Current Price: PKR 53.6
Target Price: PKR 60

HUB Power CO (HUBCO) – BUY
Current Price: PKR 106
Target Price: PKR 121

Indus Motors (INDU) – BUY
Current Price: PKR 1484
Target Price: PKR 1735

Kot Addu Power Company (KAPCO) – BUY
Current Price: PKR 76.4
Target Price: PKR 116

K-Electric (KEL) – BUY
Current Price: PKR 9.3
Target Price: PKR 13

Kohat Cement (KOHC) – BUY
Current Price: PKR 274
Target Price: PKR 353

Lucky Cement (LUCK) – BUY
Current Price: PKR 740
Target Price: PKR 813

MCB Bank Limited (MCB) – BUY 
Current Price: PKR 226
Target Price: PKR 243

Maple Leaf Cement Factory (MLCF) – BUY 
Current Price: PKR 111
Target Price: PKR 125

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 73
Target Price: PKR 80

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 145.5
Target Price: PKR 164

Pak Electron (PAEL) – BUY 
Current Price: PKR 70.9
Target Price: PKR 83

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 120
Target Price: PKR 137

Pakgen Power (PKGP) – BUY 
Current Price: PKR 25.8
Target Price: PKR 40

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 160.1
Target Price: PKR 177

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 531.2
Target Price: PKR 661

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 392.4
Target Price: PKR 490

Pakistan Telecommunications (PTC) – BUY 
Current Price: PKR 18
Target Price: PKR 21.9

Tariq Glass (TGL) – BUY 
Current Price: PKR 105.1
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

1 comment:

  1. What does the "target price" mean here and its time line?

    ReplyDelete