Pakistan Stock Exchange (PSX) Weekly Analysis 29 January, 2017

BUY recommendations are ABL, AICL, APL, ASC, BAHL, DGKC, 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: EPCL, KEL, HUBCO, BAFL, PSO, IGIIL, CSAP, OLPL, SCBPL, TRG.

Top losers of last week were: ABL, MTL, NCL, SSGC, ASTL, PICT, SNBL, ASRL, ARM, PAKT.

Top Volume Leaders of last week: KEL, JPGL, ASL, TRG, DSL, BOP, FABL, EPCL, PIAA, and PAEL.

The Pakistan Stock Exchange (PSX) market index crossed the 50k level; however leading to profit taking to keep the market volatile. KSE-100 index has reached on 49,964 by increasing 599 points or 1.21 %.While KSE-30 index has reached on 26,914 by increasing 477 points or 1.81 %.

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


  • State Bank of Pakistan has announced the Monetary Policy, and keep the discount rate unchanged
  • Power Generation & Distribution, Refinery and Commercial Banks remained in lime light during the week as they were up 2-4%. Investors flocked to these sectors in anticipation of better Dec quarter results
  • Renewed interest was seen in Fertilizer sector on the back of higher than expected fertilizer off-takes for Dec 2016
  • Foreigner remained net sellers during the week however the quantum slowed down in the week under review. Foreigners sold US$14mn worth of shares vs. US$47mn during the previous week. Major selling was seen in Power Generation & Distribution and Commercial Bank
  • Attock Refinery (ATRL) announced 2QFY17 financial results today reporting consolidated profits of Rs2,032mn (EPS Rs23.83), up 1.2X YoY, mainly driven by growth of 17.5% in net revenues and tax reversal of Rs1bn
  • National Refinery (NRL) also announced 2QFY17 financial results today reporting profit of Rs2,063mn (EPS Rs25.8), down 20.2% YoY. In 1HFY17 EPS stood at Rs49.6, up 37.5%. During 2QFY17, net revenues witnessed a decline of 11% to Rs26,603mn while gross margins declined by 4ppts to 9.2%
  • Attock Petroleum (APL) reported 2QFY17 earnings of Rs1,594mn (EPS Rs19.2), up 68% YoY. Company witnessed improvement in gross margins which increased to 5.4% vs. 4.6% in 2QFY16. Gross profits were up 20% YoY to Rs1.6bn led by higher capital gains, we believe
  • As per the notice on Pakistan Stock Exchange (PSX), National Foods (NATF) notified that National Foods DMCC (wholly owned subsidiary) through its further subsidiary namely National Epicure Inc is in the process of acquiring controlling interest of a company in Canada namely A1 Bags & Supplies Inc
  • Crescent Steel and Allied Products (CSAPL) has informed award of contract from Sui Northern Gas (SNGP) and Sui Sothern Gas (SSGC) for supply of 36 inch Bare Pipes and 24 inch Coated Pipes amounting to Rs2,315mn and Rs656mn respectively. The aforesaid contracts are expected to be executed by the first quarter of the next financial year
  • Faysal Bank (FABL) announced 4QCY16 financial results today reporting earnings of Rs537mn (EPS Rs0.47), down 53.2% YoY. For CY16, the earnings clocked in at Rs4,302mn (EPS Rs3.59) up 2% YoY, where major support came from lower provisions against non performing loan (Rs625mn down 69%) and gain on sale of securities (Rs2,093mn)
  • Cherat Cement on Monday announced it would install a third cement production line at its existing site in Nowshera, Khyber-Pakhtunkhwa
  • The Economic Coordination Committee (ECC) of the Cabinet has allowed the export of 0.3 million tons of urea and decided to continue a Rs 200 subsidy on each bag of urea fertilizer for the remaining six months
  • ADB set to provide US$196mn for post-floods highways rehabilitation project
  • Government of Pakistan potentially selling-off 5% stake in Oil & Gas Development Company (OGDC)
  • Sindh High Court issuing a Status Quo order preventing the holding of EOGM of NIB Bank to approve Scheme of Amalgamation with MCB Bank
  • PSMC’s plan to enter in to a JV to manufacture automobile glass
  • ISL disclosing plans to enhance capacity
  • CCP imposed fines of PkR62.3mn on EFOODS, PkR2mn on FFL and PkR0.5mn on Shakarganj Foods Products Limited (SFP) for deceptive marketing of dairy products as milk with EFOODS denying these allegations


Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 112.23
Target Price: PKR 132

Adamjee Insurance (AICL) – BUY 
Current Price: PKR 73.06
Target Price: PKR 92

Attock Petroleum (APL) – BUY 
Current Price: PKR 711.93
Target Price: PKR 796

Al Shaheer Corporation Ltd. (ASC) – BUY 
Current Price: PKR 56.04
Target Price: PKR 82

Bank Al-Habib Limited (BAHL) – BUY 
Current Price: PKR 58.12
Target Price: PKR 64

Dera Ghazi Khan Cement (DGKC) – BUY 
Current Price: PKR 233.83
Target Price: PKR 270

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 72.62
Target Price: PKR 83

Engro Corporation (ENGRO) – BUY
Current Price: PKR 341.57
Target Price: PKR 391

Fauji Cement Company Limited (FCCL) – BUY 
Current Price: PKR 46.54
Target Price: PKR 54

Fauji Fert Bin Qasim (FFBL) – BUY 
Current Price: PKR 54.79
Target Price: PKR 67

Hascol Petroleum (HASCOL) – BUY 
Current Price: PKR 349.80
Target Price: PKR 428

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 265.09
Target Price: PKR 304

Hi-Tech Lubricants (HTL) – BUY 
Current Price: PKR 119.61
Target Price: PKR 133

Indus Motors (INDU) – BUY
Current Price: PKR 1,807.11
Target Price: PKR 1,974

Kot Adu Power (KAPCO) – BUY
Current Price: PKR 81.95
Target Price: PKR 107

K-Electric (KEL) – BUY
Current Price: PKR 10.67
Target Price: PKR 13

Kohat Cement (KOHC) – BUY
Current Price: PKR 289.7
Target Price: PKR 353

Lalpir Power (LPL) – BUY 
Current Price: PKR 23.35
Target Price: PKR 46

Lucky Cement (LUCK) – BUY 
Current Price: PKR 880.71
Target Price: PKR 1,046

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 132.38
Target Price: PKR 165

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR 249.55
Target Price: PKR 280

Meezan Bank (MEBL) – BUY 
Current Price: PKR 66.98
Target Price: PKR 72

National Foods (NATF) – BUY 
Current Price: PKR 413.71
Target Price: PKR 473

Nishat Chunian (NCL) – BUY 
Current Price: PKR 66.08
Target Price: PKR 74

Nishat Mills (NML) – BUY 
Current Price: PKR 168.38
Target Price: PKR 186

Nishat Power (NPL) – BUY 
Current Price: PKR 65.01
Target Price: PKR 81

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 155.26
Target Price: PKR 200

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 145.6
Target Price: PKR 161

Pakgen Power (PKGP) – BUY 
Current Price: PKR 26.96
Target Price: PKR 47

Pakistan Oilfields Limited (POL) – BUY 
Current Price: PKR 512.8
Target Price: PKR 569.4

Pakistan Petroleum Limited (PPL) – BUY 
Current Price: PKR 178.1
Target Price: PKR 218

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 456.43
Target Price: PKR 490

Pakistan Telecommunications (PTC) – BUY 
Current Price: PKR 19.6
Target Price: PKR 21.9

Tariq Glass (TGL) – BUY 
Current Price: PKR 108.8
Target Price: PKR 120

United Bank Limited (UBL) – BUY 
Current Price: PKR 240.23
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

1 comment:

  1. AA, Kindly can you please clarify what is the timeline of target price.

    ReplyDelete