Pakistan Stock Exchange (PSX) Weekly Analysis 8 January, 2017

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

Top gainers of last week were: Crescent Steel, Fauji Fert., Nishat (Chun.), P.T.C.L., Askari Bank, Pak.Int.Cont., Pak Elektron, Engro Fert., Engro Corp and Millat Tractors.

Top losers of last week were: Pak Tobacco, Rafhan Maize, Thal Limited, Pak Int.Bulk, J.D.W.Sugar, Nishat Power, Soneri Bank Ltd, Abbott Lab., Bata (Pak) and Ferozsons (Lab).

Top Volume Leaders of last week: KEL, BOP, PAEL, FCCL, EFERT, AKBL, PTC, TRG, PIBTL, FFC, and NCL.

The Pakistan Stock Exchange (PSX) market index persisted its buoyant mood piling on gains as the start of the New Year witnessed the index touching the 49K level before profit taking settled in. KSE-100 index has reached on 49,038 by increasing 1231 points or 2.52 %.While KSE-30 index has reached on 26,661 by increasing 809 points or 3.13 %.

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


  • Reported price increase announced by steel bar manufacturers lifted sentiments in ASTL, MUGHAL and CSAP as they recorded another round of stock price appreciation
  • OMC names underwent an ascent as the GoP raised prices of petroleum products in the wake of higher international crude and market participants built in expectations of inventory gains in the upcoming results
  • Local E&P stocks tracked international crude recording gains and dips accordingly. NRL was the celebrated crude refiner as the company notified exchanges regarding its intention to reduce borrowing for its expansion/up gradation project and fund it through internal cash resources 
  • EFOODS was seen piling gains throughout the week as savvy players bet on the new management taking the company’s profitability into deep greens
  • The Federal Board of Revenue (FBR) has reduced sales tax on different petroleum products from January 1, 2017 including high speed diesel oil, kerosene and light diesel oil
  • Sindh Bank and Summit Bank have approached the central bank to seek permission for conducting due diligence on the proposed merger, in the latest bid for both the lenders, which are looking beyond organic growth to respond to increasing competition and need for greater operational and capital efficiency 
  • Textile exports fell by $600m during 2016
  • NBP refutes reports of 1.5 bn fraud in its operations
  • The cost of construction rose 10 per cent in the outgoing year due to increase in cement and steel bar prices, and the impact of a depreciating rupee on imported construction material 
  • Fertilizer (+6.9%) and Banks (+1.9%) were the major sectors that provided impetus to the index where former rallied on higher than estimated provisional fertilizer offtake for the month of December, which led to easing concerns over inventory glut. While the latter were in limelight again on expectations of earlier than expected interest rate reversal and robust advances growth in Dec-16 
  • Foreigners remained net sellers during the week, however the quantum was much lower, offloading USD2.0mn worth of shares, with selling primarily in concentrated in Oils (USD6.9mn)
  • The Government of Pakistan decided to keep petroleum prices unchanged for two weeks during the month of January, 2017
  • News reports stated that KEL has shelved plans for converting its BQPS‐1, FO plants with 420MW capacity to low‐priced coal after the utility failed to secure cost‐effective tariffs from the regulator

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 121
Target Price: PKR 132

Al Shaheer Corpporation Ltd. (ASC) – BUY 
Current Price: PKR 58.40
Target Price: PKR 82

Bank Al-Habib Limited (BAHL) – BUY 
Current Price: PKR 58.80
Target Price: PKR 70

Dera Ghazi Khan Cement (DGKC) – BUY 
Current Price: PKR 226.5
Target Price: PKR 272

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 73.22
Target Price: PKR 83

Engro Corporation (ENGRO) – BUY
Current Price: PKR 339.25
Target Price: PKR 391

Fauji Cement Company Limited (FCCL) – BUY 
Current Price: PKR 46.8
Target Price: PKR 52

Fauji Fert Bin Qasim (FFBL) – BUY 
Current Price: PKR 53.8
Target Price: PKR 60

Indus Motors (INDU) – BUY
Current Price: PKR 1662.26
Target Price: PKR 1735

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

Kohat Cement (KOHC) – BUY
Current Price: PKR 301.3
Target Price: PKR 353

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 129.0
Target Price: PKR 165

Nishat Mills Limited (NML) – BUY 
Current Price: PKR 161.05
Target Price: PKR 172

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 170.2
Target Price: PKR 200

Pak Electron (PAEL) – BUY 
Current Price: PKR 77
Target Price: PKR 83

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 144.3
Target Price: PKR 161

Pakistan Petroleum Limited (PPL) – BUY 
Current Price: PKR 192.9
Target Price: PKR 218

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 619
Target Price: PKR 661

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 460.7
Target Price: PKR 490

Pakistan Telecommunications (PTC) – BUY 
Current Price: PKR 18.67
Target Price: PKR 21.9

Tariq Glass (TGL) – BUY 
Current Price: PKR 108.7
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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