Pakistan Stock Exchange (PSX) Weekly Analysis 4 Dec, 2016

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

Top gainers of last week were: Indus Dyeing, Philip Morris (Lakson Tobacco), IGI Insurance, International Steels Ltd, Thal Limited, Ghani Glass Ltd, Millat Tractors, Saif Power Ltd, National Foods and Pak Tobacco Co.

Top losers of last week were: Sui South Gas, Sui North Gas Pipe., Nishat Chunian, Nishat Mills Limited, Colgate Palmolive, Bank AL-Habib, Pak.Int.Con.Ter., Jubilee Life Ins, MCB Bank Ltd and Jah.Sidd. Co.

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

The Pakistan Stock Exchange (PSX) market index posted a volatile trend in the outgoing week. The outgoing week saw the benchmark index closing at a new all-time high of 43,270pts (+271pts; +0.63% WoW) KSE-100 index has reached on 43,271 by increasing 271 points or 0.63 %.While KSE-30 index has reached on 23,167 by increasing 22 points or 0. 09 %.

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


  • Foreigners (USD 33.5mn) and Banks & DFI (USD 2.26mn) were net sellers, while Mutual Funds (USD 19.26mn), Individuals (USD 11.32mn), NBFC (USD 8.99mn) and Companies (USD 5.24mn) were net buyers
  • Prime Minister Nawaz Sharif Saturday appointed Lt Gen Qamar Javed Bajwa as new Chief of Army Staff and Lt Gen Zubair Hayat as Chairman Joint Chiefs of Staff Committee
  • State Bank of Pakistan has announced the Monetary Policy and keeps policy rate unchanged at 5.75%
  • The Pakistan Stock Exchange (PSX) is scheduled to open on Wednesday the bids submitted in response to its offer of 40% stake to strategic partner(s) as part of the ongoing demutualization process of the equity market
  • Rawalpindi, Lahore to get smart meters from June 2017
  • Sindh Engro Coal Minning Company (SECMC) Chief Executive Officer Shamsudin Ahmed Sheikh has informed that five more coal-fired power plants would be set up in block II of Thar by December 2021 and the total production capacity of coal based electricity of Thar would be expanded to around 3,000 megawatts
  • FFC stands to gain the most from the recent PKR200/mmbtu reduction in gas prices with an annualized positive earnings impact of 13% (i.e. ~PKR1.35/sh) over 2017-19, followed by EFERT (~10% or PKR0.7-0.8/sh) and FATIMA (i.e. ~9% or PKR0.5/sh) while the impact for FFBL would be muted as the company is moving to coal based generation from 2017
  • International crude oil prices jumped by 10% following oil supply cut decision by the Organization of Petroleum Exporting Countries (OPEC), which brought the local bourse back to a state of pragmatism
  • Foreign exchange reserves held by State Bank of Pakistan (SBP) decreased 1.44% to US$18.5bn, while total reserves stood at US$23.6bn
  • The government on Friday reduced gas prices for industry by about 33 per cent and settled a Rs78 billion dispute with the Sindh government over outstanding electricity bills against a payment of Rs27.4bn
  • FBR extends return filing date till December 15
  • The Panama-Gate case against the premier’s family proceeded at the apex court with a heightened perception of the opposition’s stance gaining traction
  • US Dollar crossing Rs108 in the open market
  • Shortfall of Rs130bn in tax collection during 5MFY17
  • Finance Minister announced increase in price of petrol and diesel by PkR 2/ltr and PkR 2.7/ltr respectively
  • Pakistan Telecom (PTC) announcing its fourth VSS targeting 9,000 employees

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 103.98
Target Price: PKR 120

Al Shaheer Corpporation Ltd. (ASC) – BUY 
Current Price: PKR 54.65
Target Price: PKR 82

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 34
Target Price: PKR 38

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

DG Khan Cement (DGKC) – BUY 
Current Price: PKR 195.18
Target Price: PKR 221

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 65.5
Target Price: PKR 83

Engro Corporation (ENGRO) – BUY
Current Price: PKR 305.98
Target Price: PKR 361

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 34.5
Target Price: PKR 39

Fauji Cement Company Limited (FCCL) – BUY 
Current Price: PKR 38.3
Target Price: PKR 47

Fauji Fert Bin Qasim (FFBL) – BUY 
Current Price: PKR 52.4
Target Price: PKR 60

HUB Power CO (HUBCO) – BUY
Current Price: PKR 108.1
Target Price: PKR 121

Indus Motors (INDU) – BUY
Current Price: PKR 1481
Target Price: PKR 1735

Kot Addu Power Company (KAPCO) – BUY
Current Price: PKR 76.0
Target Price: PKR 116

K-Electric (KEL) – BUY
Current Price: PKR 9.2
Target Price: PKR 13

Kohat Cement (KOHC) – BUY
Current Price: PKR 268.3
Target Price: PKR 353

Lucky Cement (LUCK) – BUY
Current Price: PKR 733.8
Target Price: PKR 813

MCB Bank Limited (MCB) – BUY 
Current Price: PKR 218.69
Target Price: PKR 243

Maple Leaf Cement Factory (MLCF) – BUY 
Current Price: PKR 112
Target Price: PKR 125

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 71.42
Target Price: PKR 80

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 147.1
Target Price: PKR 164

Pak Electron (PAEL) – BUY 
Current Price: PKR 69.6
Target Price: PKR 83

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 120.8
Target Price: PKR 137

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 159.3
Target Price: PKR 177

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 529.7
Target Price: PKR 661

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 399
Target Price: PKR 490

Pakistan Telecommunications (PTC) – BUY 
Current Price: PKR 17.64
Target Price: PKR 21.9

Tariq Glass (TGL) – BUY 
Current Price: PKR 103
Target Price: PKR 120

United Bank Limited (UBL) – BUY 
Current Price: PKR 214.67
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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