Pakistan Stock Exchange (PSX) Weekly Analysis 25 Dec, 2016


Top gainers of last week were: HMB, AICL, PSMC, THALL, PAKT, ABL, BAFL, HBL, ATRL, BAHL, MLCF, PSO, and FATIMA.

Top losers of last week were: PIBTL, MEBL, CSAP, CPPL, EFUG, SSGC, GLAXO.

Top Volume Leaders of last week: DSL, PIBTL, EPCL, BOP, POWER, and JSCL.

The Pakistan Stock Exchange (PSX) market index witnessed correction in the latter half of the outgoing going week. KSE-100 index has reached on 46,634 by increasing 49 points or 0.11 %.While KSE-30 index has reached on 25,152 by decreasing -32 points or -0.13 %.

Average daily volumes for the outgoing week posted a decline of 6% WoW to 337mn shares while average daily value decreased 13% WoW to Rs17.2bn/US$164.3mn over the week.

According to experts of, following news have played vital role in Karachi Stock Market index movement:

  • The Pakistan Stock Exchange (PSX) sold 40% strategic stake to a Chinese consortium at an amount of Rs8.9bn or US$85.5mn, translating into Rs28/share. 
  • Foreigners remained net sellers of US$45.6mn during the week
  • As per news reports, VimpelCom and Dhabi Group announced the completion of Mobilink and Warid deal, after getting approval from the Islamabad High Court (IHC) to merge Pakistan Mobile Communications Limited (Mobilink) and Warid Telecom (Warid). According to the announcement, combined legal entity will be serving over 51mn customers in the country
  • ICI Pakistan (ICI) made an announcement stating that the transaction with respect to acquisition of Cirin Pharmaceuticals (Pvt) Ltd. has been completed and ICI has taken over the control and ownership of the company as a wholly owned subsidiary 
  • Pakistan’s foreign direct investment (FDI) sharply fell 45.2 percent to $459.8 million during the five months of the current fiscal year of 2016/17
  • Dutch company FrieslandCampina Pakistan BV (FC Pakistan) has completed its acquisition of a majority stake in Engro Foods at an estimated price of $446.81 million and the company is expected to bring in expertise and introduce new products
  • PSMC confirmed plans to launch the standard model of Suzuki Celerio in Mar’17 that will replace it Cultus model
  • Prime Minister Mian Nawaz Sharif will inaugurate the Karachi-Lahore Liquefied Natural Gas (LNG) Pipeline project in the first week of January 2017
  • China expressed its intention to set up a steel factory at Gwadar to stimulate the ongoing process of economic development going on in the country in the wake of current CPEC project development 
  • PM Nawaz Sharif brought five key regulatory bodies including OGRA and NEPRA under the administrative control of relevant divisions/ministries 
  • Government of Pakistan raised PkR149.9bn in MTB auction where cut off yields for 3mth and 6mth came in at 5.991% (up 4.4bps) and 6.0109% (up 6.3bps)
  • Competition Appellate Tribunal has dismissed an appeal filed by HASCOL to prevent PSO from acquiring SHEL’s shares in PRL
  • NEPRA granted power generation license to Maple Leaf Power Limited, clearing the way for setting up an imported coal-fired plant of 40MW at an estimated cost of PkR5.5bn
  • Banks performed well during the week as investors anticipated good earnings. HBL (+159.7pts), HMB (+44.6pts), BAHL (+36.2pts) and BAFL (+34.2pts) secured their position as the top 5 index movers
  • Hubco allowed to build two imported coal-based plants
  • Government seeks $200m ADB loan to dualise Lahore-Peshawar railway track

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 119
Target Price: PKR 132

Al Shaheer Corpporation Ltd. (ASC) – BUY 
Current Price: PKR 56.50
Target Price: PKR 82

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 65.41
Target Price: PKR 83

Engro Corporation (ENGRO) – BUY
Current Price: PKR 313.16
Target Price: PKR 361

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 35.64
Target Price: PKR 39

Fauji Cement Company Limited (FCCL) – BUY 
Current Price: PKR 41.84
Target Price: PKR 47

Fauji Fert Bin Qasim (FFBL) – BUY 
Current Price: PKR 50.06
Target Price: PKR 60

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 103.34
Target Price: PKR 117

Indus Motors (INDU) – BUY
Current Price: PKR 1574
Target Price: PKR 1735

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

Kohat Cement (KOHC) – BUY
Current Price: PKR 277
Target Price: PKR 353

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 74
Target Price: PKR 80

Nishat Mills Limited (NML) – BUY 
Current Price: PKR 151.30
Target Price: PKR 172

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 162.32
Target Price: PKR 200

Pak Electron (PAEL) – BUY 
Current Price: PKR 67.8
Target Price: PKR 83

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 137.36
Target Price: PKR 153

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 620
Target Price: PKR 661

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 418.98
Target Price: PKR 490

Pakistan Telecommunications (PTC) – BUY 
Current Price: PKR 17.30
Target Price: PKR 21.9

Tariq Glass (TGL) – BUY 
Current Price: PKR 96.4
Target Price: PKR 120

Thank you very much for reading this article.

NOTE: The information posted in this blog /forum ( 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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