Pakistan Stock Exchange (PSX) Weekly Analysis 17 January, 2017

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

Top gainers of last week were: Pak.Int.Cont., TRG Pak Ltd, Faysal Bank, Cherat Pack, St.Chart.Bank, Allied Rent., Nishat Power, The Searle Co., Sui North Gas and National Refinery

Top losers of last week were: Pak Petroleum, Indus Dyeing, Engro Fert., Bannu Woollen, Kohinoor Textile, Hum Network, Jubile Life Ins, IGI Insurance, Nishat Mills Ltd and Packages Ltd.

Top Volume Leaders of last week: KEL, TRG, EFERT, BOP, SSGC, FABL, FFC, PAEL, SNGP, NCL, and JSCL,

The Pakistan Stock Exchange (PSX) market index consolidated at around record all-time high of 49k in the outgoing week.. KSE-100 index has reached on 49,211 by increasing 173 points or 0.35 %.While KSE-30 index has reached on 26,739 by increasing 78 points or 0.29 %.

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


  • News regarding increase in equity stake by HUBC management in the 2x660MW power projects from 26% to 47.5% served as a major catalyst for the stock where we estimate valuation impact of PKR16/sh. While KAPCO rallied on management's nod to investment in 660MW coal power plant in Punjab
  • Foreigners remained net sellers during the week, with significant increase in the quantum, offloading USD46.5mn worth of shares, with selling primarily concentrated in Fertilizer (USD14.2mn) and cement (USD13.1mn) sector 
  • 21.5 percent funds released for CPEC-related projects
  • World Bank revises GDP growth upward to 5.2 percent for 2017, 5.5 percent for 2018
  • The ongoing case hearing against premier’s family failed to bridle the bull-run of the market amid earnings excitement among the market participants
  • Export package of PKR180bn, announced by GoP during the week, added further to the steamy pace of the local bourse
  • The surprise withdrawal of PKR400/bag subsidy on fertilizers spurred a selling spree, pushing all the names in the sector into deep red
  • The index heavy oil stocks remained depressed on account of receding international crude prices as Iran increases its oil exports to re-gain market share, and shale drilling activity in the U.S registered a gain for the 10th consecutive month 
  • The Securities and Exchange Commission of Pakistan (SECP) will make it mandatory for the insurance companies to establish an industry-wide guarantee fund to protect the interests of policyholders under the draft Insurance Bill 2016
  • The MCB Bank Limited and NIB Bank have scheduled extraordinary general meeting (EOGM) on January 23 to seek approval of their respective shareholders for the merger of NIB Bank into MCB Bank 
  • ECC approving the summary regarding the Prime Minister's Package of Incentives for Exporters with an estimated outlay of PkR180bn, and is applicable for the period from CY17‐18 
  • PBS in its latest data showed that LSM grew 8.02% in Nov'16
  • Dec'16 total industry/car sales were recorded at 16,042/14,024 units, lower by 10.2%/12.4%MoM, while CY16 industry/car sales remained upbeat, res􀆟ng at 203,633/177,363 units tapering 9.2%/2.7%YoY, whereas ex‐Rozgar, car sales jump 26%YoY

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 120
Target Price: PKR 132

Al Shaheer Corpporation Ltd. (ASC) – BUY 
Current Price: PKR 57.23
Target Price: PKR 82

Bank Al-Habib Limited (BAHL) – BUY 
Current Price: PKR 58
Target Price: PKR 70

Dera Ghazi Khan Cement (DGKC) – BUY 
Current Price: PKR 224.5
Target Price: PKR 272

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 69.6
Target Price: PKR 83

Engro Corporation (ENGRO) – BUY
Current Price: PKR 331
Target Price: PKR 391

Fauji Cement Company Limited (FCCL) – BUY 
Current Price: PKR 47.1
Target Price: PKR 52

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

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

Kohat Cement (KOHC) – BUY
Current Price: PKR 294.5
Target Price: PKR 353

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 131.7
Target Price: PKR 165

Nishat Mills Limited (NML) – BUY 
Current Price: PKR 156
Target Price: PKR 172

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 168.3
Target Price: PKR 200

Pak Electron (PAEL) – BUY 
Current Price: PKR 75.6
Target Price: PKR 83

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 143.0
Target Price: PKR 161

Pakistan Petroleum Limited (PPL) – BUY 
Current Price: PKR 180.9
Target Price: PKR 218

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 624
Target Price: PKR 661

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 454.5
Target Price: PKR 490

Pakistan Telecommunications (PTC) – BUY 
Current Price: PKR 19
Target Price: PKR 21.9

Tariq Glass (TGL) – BUY 
Current Price: PKR 105.5
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

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