Pakistan Stock Exchange (PSX) Weekly Analysis 6 February, 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: 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 http://www.karachistockexchange.org, 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 (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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