Pakistan Stock Exchange (PSX) Weekly Analysis 23 January, 2017

BUY recommendations are ABL, AICL, APL, ASC, BAHL, DGKC, EFOODS, EFERT, ENGRO, FCCL, FFBL, HASCOL, HBL, INDU, KAPCO, KEL, KOHC, LPL, LUCK, MLCF, MCB, MEBL, NATF, NPL, OGDC, PIOC, PKGP, PPL, PSO, PTC, TGL and UBL.

Top gainers of last week were: Millat Tractors, National Refinery, Abbott Lab., Sui North Gas, Honda Atlas Cars, Soneri Bank Ltd, IGI Insurance, J.D.W.Sugar, Inter.Steel Ltd and Pak Tobacco.

Top losers of last week were: Oil & Gas Dev., St.Chart.Bank, Service Ind.Ltd, Habib Bank, United Bank, Ghani Glass LtdXD, P.S.O., Allied Bank Ltd., Ferozsons (Lab) and MCB Bank Ltd.

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

The Pakistan Stock Exchange (PSX) market index Index remained volatile during the week owing to political developments related to Panama‐gate case. KSE-100 index has reached on 49,365 by increasing 154 points or 0.31 %.While KSE-30 index has reached on 26,437 by decreasing -302 points or -1.13 %.

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

  • The sole salvaging factor for the benchmark in the earlier half of the week was a rally in fertilizer names as the prime minister announced restoration of subsidy on the commodity, to be funded by the federal exchequer
  • MLCF announced its brown-field expansion taking its installed capacity to 18,000 TPD and POWER chipped in with its intention to triple its production capacity putting to rest any rumors regarding its merger/acquisition
  • PPL declare its long awaited results whereby it booked an impairment of more than PKR6bn on its Europe subsidiary (MND exploration)
  • The announcement of 5% divestment of the E&P giant OGDC by the government through the equity markets suppressed the stock into red as investors foresee a large infusion into an already bloated float of the stock
  • The levy of anti-dumping duty on imported steel products from China and Ukraine cheered steel stocks as they scored multiple upper circuits
  • PAEL re-embarked on an upwards journey led by anticipation of growing earnings as the company introduced a slew of new products in its consumer division and a strong order book in the transformers segment
  • Shanghai Electric Power (SEP) said on Friday it has received approval from the Chinese Ministry of Commerce to acquire stakes in K-Electric. One of Abraaj Group’s companies. The deal, when closed, will be worth $1.77 billion
  • Federal Minister for Planning, Development and Reforms Ahsan Iqbal Monday said that Diamer-Bhasha Dam would also be part of the China-Pakistan Economic Corridor (CPEC) 
  • Chairman Alibaba Group Jack Ma Wednesday evinced keen interest in investing in Pakistan and to build an e-Commerce platform to further promote online business ventures 
  • Arif Habib Group, one of the largest private-sector conglomerates in Pakistan, has said that it is going to invest Rs25 billion (or $235 million) in a new cement plant that will be completed in the next two years
  • Refinery remained best performing sector mainly led by National Refinery (NRL). The stock rallied 16% during the week in anticipation of better earnings after its plant up-gradation
  • In line with past many weeks trend, foreigners remained net sellers of US$46.6mn during the week. Main selling by foreigners was seen in Banks, followed by Textile and Electricity
  • Ghani Gases (GGL) notified long term equity investments of Rs450mn in Ghani Global Glass (GGGL/ an associated listed company) through purchase of 25,000,000 ordinary shares (equal to 25% of total paid up capital of GGGL) at Rs18 per share in accordance with the special resolution passed by shareholders of the Company
  • Proposal by the Ministry to allow export of 0.3mn tons of urea
  • SECP proposed setting requirement all equity funds and funds of funds would have to maintain at least 5% of net assets in cash and cash equivalents


Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 116.22
Target Price: PKR 132

Adamjee Insurance (AICL) – BUY 
Current Price: PKR 74.18
Target Price: PKR 92

Attock Petroleum (APL) – BUY 
Current Price: PKR 704.10
Target Price: PKR 796

Al Shaheer Corpporation Ltd. (ASC) – BUY 
Current Price: PKR 59.89
Target Price: PKR 82

Bank Al-Habib Limited (BAHL) – BUY 
Current Price: PKR 58.57
Target Price: PKR 64

Dera Ghazi Khan Cement (DGKC) – BUY 
Current Price: PKR 224.92
Target Price: PKR 270

ENGRO Foods (EFOODS) – BUY 
Current Price: PKR 202.17
Target Price: PKR 220

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 70.38
Target Price: PKR 83

Engro Corporation (ENGRO) – BUY
Current Price: PKR 333.82
Target Price: PKR 391

Fauji Cement Company Limited (FCCL) – BUY 
Current Price: PKR 46.41
Target Price: PKR 54

Fauji Fert Bin Qasim (FFBL) – BUY 
Current Price: PKR 54.83
Target Price: PKR 67

Hascol Petroleum (HASCOL) – BUY 
Current Price: PKR 347.07
Target Price: PKR 428

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 260.58
Target Price: PKR 304

Indus Motors (INDU) – BUY
Current Price: PKR 1,787.24
Target Price: PKR 1,974

Kot Adu Power (KAPCO) – BUY
Current Price: PKR 83.09
Target Price: PKR 107

K-Electric (KEL) – BUY
Current Price: PKR 9.56
Target Price: PKR 13

Kohat Cement (KOHC) – BUY
Current Price: PKR 297.76
Target Price: PKR 353

Lalpir Power (LPL) – BUY 
Current Price: PKR 23.89
Target Price: PKR 46

Lucky Cement (LUCK) – BUY 
Current Price: PKR 872.51
Target Price: PKR 1,046

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 133.61
Target Price: PKR 165

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR 243.52
Target Price: PKR 280

Meezan Bank (MEBL) – BUY 
Current Price: PKR 64.50
Target Price: PKR 72

National Foods (NATF) – BUY 
Current Price: PKR 379.95
Target Price: PKR 473

Nishat Power (NPL) – BUY 
Current Price: PKR 67.50
Target Price: PKR 81

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 155.30
Target Price: PKR 200

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 146.20
Target Price: PKR 161

Pakgen Power (PKGP) – BUY 
Current Price: PKR 26.42
Target Price: PKR 47

Pakistan Petroleum Limited (PPL) – BUY 
Current Price: PKR 177.05
Target Price: PKR 218

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 435.70
Target Price: PKR 490

Pakistan Telecommunications (PTC) – BUY 
Current Price: PKR 19.36
Target Price: PKR 21.9

Tariq Glass (TGL) – BUY 
Current Price: PKR 108.2
Target Price: PKR 120

United Bank Limited (UBL) – BUY 
Current Price: PKR 238.41
Target Price: PKR 294

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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