Pakistan Stock Exchange (PSX) Weekly Analysis 18 Dec, 2016

BUY recommendations are ABL, ASC, BAFL, BAHL, EFERT, ENGRO, FATIMA, FCCL, FFBL, FFC, INDU, KAPCO, KEL, KOHC, NBP, NML, OGDC, PAEL, PIOC, PSMC, PSO, PTC and TGL.

Top gainers of last week were: Mari Petroleum, Pak Oilfields, Pak Petroleum, Associated Services Limited, Meezan Bank, Pak Int.Bulk Ter, Sui North Gas Pipe., Faysal Bank, Crescent Steel and The Searle Pak.

Top losers of last week were: Nishat Power Ltd, Allied Rental Mod, Bestway Cem, Fatima Fert.Co., Thal Limited, Fauji Fert Bin, National Foods, Engro Fertilizer, Engro Corp and Shifa International Hospitals.

Top Volume Leaders of last week: PIBTL, BOP, TRG, SNGP, OGDC, FCCL, KEL, DCL, SSGC, FABL, AKBL.

The Pakistan Stock Exchange (PSX) market index continues to set fresh records this week as well with the index closing at an all‐time high of 46,585 (‐2.64%WoW). KSE-100 index has reached on 46,585 by increasing 1198 points or 2.64 %.While KSE-30 index has reached on 25,184 by increasing 737 points or 3.01 %.

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


  • Bullish performance was led by calming political uncertainty over Panama paper and strong oil prices post deal with Non‐OPEC producers propelling gains in the index heavy Oil & Gas sector (+7.8%WoW)
  • Four strategic investors submitted bids on Thursday for acquiring 40% stake in the Pakistan Stock Exchange (PSX)
  • Car sales dropped five per cent year-on-year to 71,877 units in the July-November period, though they posted an increase in November alone, according to figures released by the Pakistan Automotive Manufacturers Association
  • After Lucky Cement and a Chinese investor, Fecto Cement has now shown interest in acquiring stakes in Dewan Cement Limited
  • The government on Thursday reversed its decision of November 25 to reduce gas prices for the industrial sector by 33 per cent following a strong protest from the Punjab government and Punjab-based textile industry
  • As per the latest numbers released by the Pakistan Telecommunications Authority (PTA), the 3G/4G subscribers depicted a phenomenal growth of 20% over 4MFY17
  • US FOMC increased the Federal Funds Target Rate (FFTR) by 25bps to 0.75% in its monetary policy and also raised its outlook on rate increase over CY17
  • Chinese firm showed interest in participating Nishat Energy Limited (NEL) plan of setting up a 660MW power plant on imported coal by Dec’20
  • ECC of the cabinet reversed its earlier decision to reduce the gas sale price for industrial sector to PkR400/mmbtu however, it approved reduction in price for power stations and IPPs from PkR613/mmbtu to PkR400/mmbtu
  • PSMC linked its US$460mn investment in a new Greenfield project with a steep cut in import duties
  • HUBC was seen back in action as its 330MW Thar coal mine mouth power plant received an LOS from the government and renewed hopes of its 660MWx2 plant regaining traction as per its notification to the exchange
  • ICI Pakistan Limited is in discussions to finalize arrangements to acquire the assets of Wyeth Pakistan Limited, a multinational pharmaceutical company operating in Pakistan since 1949
  • A meeting of the Economic Coordination Committee (ECC) of the Cabinet has approved wheat procurement price at Rs 1,300 per 40 kilograms for the next fiscal year to support the farmers against declining wheat price in the international market 
  • A parliamentary panel was informed on Tuesday that Pakistan Steel Mills Corporation (PSM) would be privatized in three months
  • US grants $81 million for Kurram Tangi project in KP
  • State Bank of Pakistan approves sale of Burj Bank
  • Engro Foods Ltd's (EFOODS) shareholders tendered an aggregate 29.66mn shares being 3.9% of the total shares of the Company and 60% of the maximum Public Offer uptake, which have been accepted and transferred. Due to lower than-maximum aggregate shares tendered, we believe Engro Corporation (ENGRO) will sell 361.30mn shares to FrieslandCampina Pakistan Holding B.V to take the Dutch company’s holding to 51%  
  • Foreigners offloaded shares worth USD47mn during the outgoing week, with cumulative outflows CYTD now standing at a hefty USD273mn


Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 110.91
Target Price: PKR 120

Al Shaheer Corpporation Ltd. (ASC) – BUY 
Current Price: PKR 54.29
Target Price: PKR 82

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 35
Target Price: PKR 38

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 55
Target Price: PKR 60

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 65.77
Target Price: PKR 83

Engro Corporation (ENGRO) – BUY
Current Price: PKR 308.55
Target Price: PKR 361

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 35.07
Target Price: PKR 39

Fauji Cement Company Limited (FCCL) – BUY 
Current Price: PKR 41.41
Target Price: PKR 47

Fauji Fert Bin Qasim (FFBL) – BUY 
Current Price: PKR 51.07
Target Price: PKR 60

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 103.89
Target Price: PKR 117

Indus Motors (INDU) – BUY
Current Price: PKR 1587
Target Price: PKR 1735

Kot Addu Power Company (KAPCO) – BUY
Current Price: PKR 77.99
Target Price: PKR 116

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

Kohat Cement (KOHC) – BUY
Current Price: PKR 283.97
Target Price: PKR 353

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 73.20
Target Price: PKR 80

Nishat Mills Limited (NML) – BUY 
Current Price: PKR 151
Target Price: PKR 172

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 166.53
Target Price: PKR 200

Pak Electron (PAEL) – BUY 
Current Price: PKR 68.9
Target Price: PKR 83

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 139.13
Target Price: PKR 153

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 570
Target Price: PKR 661

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 411
Target Price: PKR 490

Pakistan Telecommunications (PTC) – BUY 
Current Price: PKR 17.84
Target Price: PKR 21.9

Tariq Glass (TGL) – BUY 
Current Price: PKR 104
Target Price: PKR 120

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

2 comments:

  1. Hello,
    For your above recommended Buys, pls also confirm how much long we need to hold to achieve target prices. Thanks

    ReplyDelete
  2. Sir, really appreciate your analysis always useful.. JazakAllah

    ReplyDelete