Pakistan Stock Exchange (PSX) Weekly Analysis 2 January, 2017

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

Top gainers of last week were: Pak Tobacco, Engro Foods Ltd., IGI Insurance, Saif Power Ltd., Nishat Power, Honda Atlas Cars, Philip Morris Pak., Fauji CementXD, Jah.Sidd. Co. and Arif Habib Corp.

Top losers of last week were: Bata (Pak), J.D.W.Sugar, Habib Metropol., Adamjee Ins., Murree Brewery, Faysal Bank, Pak Int.Bulk, Mari Petroleum, National Refinery and Pak Suzuki.

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

The Pakistan Stock Exchange (PSX) market index witnessed a slightly dull week before entering the new year, lack of substantive institutional participation and muted foreign interest due to Christmas holidays are the chief reasons explaining the lull. KSE-100 index has reached on 4 7,807 by increasing 1173 points or 2.52 %.While KSE-30 index has reached on 25,852 by increasing 700 points or 2.78 %.

Foreign selling took a breather as Christmas holidays kept a lid on offshore activity. The market gained 1,172 points during the week with average daily volumes dialing in at 276mn shares.

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

• The index was helped by key banking names on account of earnings excitement which saw HBL, BAHL, BAFL and UBL gather investor’s interest
• Oil marketing sector was in the limelight amid price increase announced by GoP which ignited expectations of sizeable inventory gains
• The release of fertilizer statistics hinted at rising offtake for both Urea and DAP, which helped in forming strong expectations regarding earnings
• Cement stalwarts recorded a mild rally upon release of sales data as the broader theme of growth in offtake stayed intact
• FCCL was in for another ascent as market chatter suggests the company reinitializing its damaged production line earlier than expected
• The M&A arena saw BWCL as the latest to show its interest in acquiring DCL’s north plant
• The government is planning to privatise five public sector enterprises (PSEs), including KotAddu Power Company Limited (KAPCO), Pakistan Steel Mills (PSM), Industrial Development Bank Ltd (IDBL) and Mari Petroleum Company Limited, in calendar year 2017 
• The three new projects to be financed by China fall on the western route of the corridor. They include a 280kilomtre road from Raikot to Thakot at a cost of Rs8bn, 210km dual carriageway from Yarik to Zhob (Rs80bn), and a 110km road from Basima to Khuzdar (Rs19.76bn)  
• The government has slashed gas prices for the power sector by about 35 per cent to Rs 400 per MMBTU from Rs 613 per MMBTU aimed at eliminating price disparity and reduce electricity generation cost. In accordance with Fertilizer Policy 2001, the industrial sector gas sale price will also be applicable to fertilizer sector (fuel stock); and General Sales Tax would be charged @ Rs 100 per MMBTU on the gas sale price for the aforesaid consumers 
• The Ministry of Petroleum has officially taken administrative control of Oil & Gas Regulatory Authority (Ogra) and has requested the Prime Minister to reappoint Amir Naseem as Member Gas, who retired on December 22
• The Balochistan government has imposed with immediate effect a ban on transfer of land in the port city of Gwadar for three months. The provincial revenue department has issued an official notification
• CNG prices increased by PkR3.5/kg across Sindh, the first hike following the GoP’s decision to deregulate the country’s CNG market
• ECC of the cabinet approved export of 225K tons of sugar without any rebate and allocation of 26MMCFD gas to EFERT old plant

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 119.21
Target Price: PKR 132

Attock Cement (ACPL) – BUY 
Current Price: PKR 336.3
Target Price: PKR 391

Al Shaheer Corpporation Ltd. (ASC) – BUY 
Current Price: PKR 57.40
Target Price: PKR 82

Bank Al-Habib Limited (BAHL) – BUY 
Current Price: PKR 58.99
Target Price: PKR 70

Dera Ghazi Khan Cement (DGKC) – BUY 
Current Price: PKR 221.7
Target Price: PKR 272

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 68.0
Target Price: PKR 83

Engro Corporation (ENGRO) – BUY
Current Price: PKR 316.09
Target Price: PKR 361

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 36.9
Target Price: PKR 40

Fauji Cement Company Limited (FCCL) – BUY 
Current Price: PKR 45.1
Target Price: PKR 52

Fauji Fert Bin Qasim (FFBL) – BUY 
Current Price: PKR 51.21
Target Price: PKR 60

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 104.37
Target Price: PKR 117

Indus Motors (INDU) – BUY
Current Price: PKR 1614
Target Price: PKR 1735

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

Kohat Cement (KOHC) – BUY
Current Price: PKR 291.6
Target Price: PKR 353

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 127.6
Target Price: PKR 165

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 75
Target Price: PKR 80

Nishat Mills Limited (NML) – BUY 
Current Price: PKR 152
Target Price: PKR 172

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 165.4
Target Price: PKR 200

Pak Electron (PAEL) – BUY 
Current Price: PKR 71.3
Target Price: PKR 83

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 142.1
Target Price: PKR 161

Pakistan Petroleum Limited (PPL) – BUY 
Current Price: PKR 188.2
Target Price: PKR 218

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 613
Target Price: PKR 661

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 434.2
Target Price: PKR 490

Pakistan Telecommunications (PTC) – BUY 
Current Price: PKR 17.18
Target Price: PKR 21.9

Tariq Glass (TGL) – BUY 
Current Price: PKR 100.5
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