Pakistan Stock Exchange (PSX) Weekly Analysis 6 February, 2017


Top gainers of last week were: Inter.Steel Ltd, Pak Tobacco, Ibrahim Fibres, P.S.O., Soneri Bank Ltd, Engro Corp, Millat Tractors, Mari Petroleum, Oil & Gas Dev. and TRG Pak Ltd.

Top losers of last week were: Pak.Int.Cont., Pak Tobacco, Ibrahim Fibres, P.S.O., Soneri Bank Ltd, Engro Corp, Millat Tractors, Mari Petroleum, Oil & Gas Dev. and TRG Pak Ltd.

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

The Pakistan Stock Exchange (PSX) market index recorded a steep fall during the early sessions due to heat on political front and executive orders from US president on travel ban on certain Muslim countries. KSE-100 index has reached on 49,556 by decreasing 408 points or -0.82 %.While KSE-30 index has reached on 26,717 by decreasing 197 points or -0.73 %.

According to experts of, following news have played vital role in Karachi Stock Market index movement:

  • The outgoing week observed a significant hike in the prices of petroleum products, which is likely to translate into inventory gains, providing a thrust to OMC names
  • Steel players registered their names in stellar performers of the week amid expansion plans and large scale steel orders from government entities
  • Banking sector, on the other hand, remained numb as FED decided to keep interest rates unchanged in US and local CPI hinted towards a downturn in inflationary pressure, quashing expectations of a rate hike in the near term 
  • The National Transmission and Despatch Company (NTDC) has connected 1,320MW Sahiwal Coal-fired power plant with the national grid through a 500kV transmission line under the China-Pakistan Economic Corridor (CPEC) framework 
  • Engro Fertilizers (Pvt) Limited, a country’s leading fertiliser maker, is mulling to make an offshore investment into pesticides manufacturing and market the products locally through its vast distribution network countrywide 
  • Sui Southern Gas Company (SSGC) is optimistic about a turnaround as the management is undertaking extensive efforts to ensure the company steers itself back to profitability 
  • The prospect of Kot Addu Power Company (Kapco) privatisation faces delay as issues of required comfort letter for the extension of power purchase agreement (PPA) and others remain unsettled 
  • National Accountability Bureau (NAB) has signed a Memorandum of Understanding (MoU) with China to ensure co-operation and oversee transparency in China Pakistan Economic Corridor (CPEC) projects in Pakistan 
  • Foreigners remained net sellers during the outgoing week as well, selling USD15.31mn worth of shares, up 12% WoW
  • Pharmaceuticals, Refinery, Cement & Commercial Banks declined by 2-5.5%, while Oil & Gas Exploration, Chemical and Oil & Gas Marketing supported the broader index during the week as they were up 1-2%
  • GoP initiated the process for sale of its 18.39% shareholding in MARI at 7.5% discount to the closing market price of MPCL shares on Jan 27’17 (PkR1,402.9/sh)
  • Sindh Bank Limited and Summit Bank (SMBL) begun talks for a potential merger
  • Cabinet Committee on Privatization (CCoP) deferred the divestment of GoP's 5% stake in OGDC on the stock exchange until its share price touched PkR200/sh
  • GoP increased POL prices from the month of Feb’17 (Petrol:+PkR2.25/ltr & HSD: +PkR2.26)
  • Major results announcement next week includes MCB, ABL, PRL, PTC, CHCC, LOTCHEM & EPCL
  • In a surprising result, EFOODS reported a loss of Rs0.3/sh in 4Q2016, taking full year EPS to Rs3.1, down 25% YoY. The company also paid out an un-anticipated cash dividend of Rs10 per share (including a one-time special dividend of Rs9/share). This will have after tax earnings impact of Rs4.6/share on Engro Corporation’s (ENGRO) book as it holds 36% stake in EFOODS

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 110.69
Target Price: PKR 132

Adamjee Insurance (AICL) – BUY 
Current Price: PKR 74.19
Target Price: PKR 92

Attock Petroleum (APL) – BUY 
Current Price: PKR 664.6
Target Price: PKR 796

Al Shaheer Corporation Ltd. (ASC) – BUY 
Current Price: PKR 50.97
Target Price: PKR 82

Bank Al-Habib Limited (BAHL) – BUY 
Current Price: PKR 58.94
Target Price: PKR 64

Dera Ghazi Khan Cement (DGKC) – BUY 
Current Price: PKR 230.6
Target Price: PKR 270

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 69.7
Target Price: PKR 83

Engro Corporation (ENGRO) – BUY
Current Price: PKR 358.86
Target Price: PKR 391

Fauji Cement Company Limited (FCCL) – BUY 
Current Price: PKR 45.3
Target Price: PKR 54

Fauji Fert Bin Qasim (FFBL) – BUY 
Current Price: PKR 51.9
Target Price: PKR 67

Hascol Petroleum (HASCOL) – BUY 
Current Price: PKR 351.93
Target Price: PKR 428

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 263.55
Target Price: PKR 304

Hi-Tech Lubricants (HTL) – BUY 
Current Price: PKR 120.68
Target Price: PKR 133

Indus Motors (INDU) – BUY
Current Price: PKR 1,718.69
Target Price: PKR 1,974

Kot Adu Power (KAPCO) – BUY
Current Price: PKR 81.21
Target Price: PKR 107

K-Electric (KEL) – BUY
Current Price: PKR 10.5
Target Price: PKR 13

Kohat Cement (KOHC) – BUY
Current Price: PKR 277.1
Target Price: PKR 353

Lalpir Power (LPL) – BUY 
Current Price: PKR 23.23
Target Price: PKR 46

Lucky Cement (LUCK) – BUY 
Current Price: PKR 859.41
Target Price: PKR 1,046

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 134.7
Target Price: PKR 165

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR 237.99
Target Price: PKR 280

Meezan Bank (MEBL) – BUY 
Current Price: PKR 69.00
Target Price: PKR 72

National Foods (NATF) – BUY 
Current Price: PKR 392.71
Target Price: PKR 473

Nishat Chunian (NCL) – BUY 
Current Price: PKR 66.59
Target Price: PKR 74

Nishat Mills (NML) – BUY 
Current Price: PKR 168.10
Target Price: PKR 186

Nishat Power (NPL) – BUY 
Current Price: PKR 63.08
Target Price: PKR 81

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 159.3
Target Price: PKR 200

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

Pakgen Power (PKGP) – BUY 
Current Price: PKR 26.58
Target Price: PKR 47

Pakistan Oilfields Limited (POL) – BUY 
Current Price: PKR 495.94
Target Price: PKR 569.4

Pakistan Petroleum Limited (PPL) – BUY 
Current Price: PKR 179.6
Target Price: PKR 218

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 486.1
Target Price: PKR 490

Pakistan Telecommunications (PTC) – BUY 
Current Price: PKR 18.77
Target Price: PKR 21.9

Tariq Glass (TGL) – BUY 
Current Price: PKR 102.3
Target Price: PKR 120

United Bank Limited (UBL) – BUY 
Current Price: PKR 233.4
Target Price: PKR 294

Thank you very much for reading this article.

NOTE: The information posted in this blog /forum ( is based on current affairs & investors point of view. There may be discrepancy in the ground realities.

Written by: Rana Khurram

No comments:

Post a Comment