Pakistan Stock Exchange (PSX) Weekly Analysis 26 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, POWER, PPL, PSO, PTC, TGL and UBL.

Top gainers of last week were: IDYM, BWCL, NESTLE, HMB, MTL, BATA, MARI, PIOC, SSGC and FEROZ.

Top losers of last week were: BOP, HASCOL, GHGL, IGIIL, NPL, MUREB, DAWH, ISL, PMPK and AHCL.

Top Volume Leaders of last week: KEL, TRG, SSGC, BOP, SNGP, PAEL, BAFL, ISL, NBP, PAEL, NCL and PIBTL.

The Pakistan Stock Exchange (PSX) market index continued it’s downwards trend from the previous week, declining marginally by 0.7% (~367pts), to close at 49,008pts. KSE-100 index has reached on 49,008 by decreasing -368 points or -0.74 %, while KSE-30 index reached on 26,592 by decreasing -104 points or -0.39 %.

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

• Foreigners remained net sellers during the week, mopping up USD 4.84mn worth of shares
• Work on 1320 megawatts coal based power plant costing two point six billion dollars is underway at Thar Coal Field which will start producing electricity by 2018
• NTC has decided final definitive antidumping duty on imports of cotton yarn
• Daewoo Express, the Pakistan’s only foreign transport service provider, has planned to secure four billion rupees through an initial public offering (IPO) at the country’s capital market
• Bestway Cement remained the key outperformer during the week with a gain of 1.4% post announcement of its non-binding agreement with Dewan Cement Limited (DCL) for acquisition of Hattar plant
• Sui Southern Gas Company (SSGC) also gained traction (up 3.7% WoW) on recommendation of additional allowance of UFG by a reputable advisory firm
• Bank Alfalah reported 2016 consolidated EPS of Rs 4.96 (+5% YoY). While earnings were in line with market expectation, lack of final cash dividend (amid CAR concerns) led the stock to close at its lower circuit
• Tariq Glass (TGL) posted profits of Rs203mn (EPS: Rs2.77, +2.8x YoY/ 8% QoQ), on revenue of Rs 2.5bn (+27% YoY). The result took half year EPS to Rs 5.33 vs Rs 3.21 last year, up 66% YoY
• PSMC released expansion plans for producing 100,000 units (current capacity is 150,000) with total planned outlay of US$460mn
• Government finally allocates Rs25b for Gwadar LNG pipeline
• Hascol to develop LPG Terminal at Port Qasim

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 100.23
Target Price: PKR 132

Adamjee Insurance (AICL) – BUY 
Current Price: PKR 74.07
Target Price: PKR 92

Attock Petroleum (APL) – BUY 
Current Price: PKR 635.6
Target Price: PKR 796

Al Shaheer Corporation Ltd. (ASC) – BUY 
Current Price: PKR 46.20
Target Price: PKR 82

Bank Al-Habib Limited (BAHL) – BUY 
Current Price: PKR 54.10
Target Price: PKR 64

Dera Ghazi Khan Cement (DGKC) – BUY 
Current Price: PKR 240.3
Target Price: PKR 270

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 68.2
Target Price: PKR 83

ENGRO Foods (EFOODS) – BUY 
Current Price: PKR 182.97
Target Price: PKR 225

Engro Corporation (ENGRO) – BUY
Current Price: PKR 373.42
Target Price: PKR 391

Fauji Cement Company Limited (FCCL) – BUY 
Current Price: PKR 44.7
Target Price: PKR 54

Fauji Fert Bin Qasim (FFBL) – BUY 
Current Price: PKR 54.1
Target Price: PKR 67

General Tyre & Rubber  (GTYR) – BUY 
Current Price: PKR 271.02
Target Price: PKR 313

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 273.87
Target Price: PKR 304

Hascol Petroleum (HASCOL) – BUY 
Current Price: PKR 327.81
Target Price: PKR 428

Hi-Tech Lubricants (HTL) – BUY 
Current Price: PKR 112.44
Target Price: PKR 133

Indus Motors (INDU) – BUY
Current Price: PKR 1,679.17
Target Price: PKR 1,974

Kot Adu Power (KAPCO) – BUY
Current Price: PKR 80.37
Target Price: PKR 107

K-Electric (KEL) – BUY
Current Price: PKR 9.8
Target Price: PKR 13

Kohat Cement (KOHC) – BUY
Current Price: PKR 270.5
Target Price: PKR 353

Lalpir Power (LPL) – BUY 
Current Price: PKR 22.22
Target Price: PKR 46

Lucky Cement (LUCK) – BUY 
Current Price: PKR 877.55
Target Price: PKR 1,046

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 128.2
Target Price: PKR 165

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR 231.01
Target Price: PKR 280

Meezan Bank (MEBL) – BUY 
Current Price: PKR 65.24
Target Price: PKR 72

National Foods (NATF) – BUY 
Current Price: PKR 345.12
Target Price: PKR 473

Nishat Power (NPL) – BUY 
Current Price: PKR 55.63
Target Price: PKR 81

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 157.5
Target Price: PKR 200

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 148.8
Target Price: PKR 161

Pakgen Power (PKGP) – BUY 
Current Price: PKR 24.05
Target Price: PKR 47

Pakistan Oilfields Limited (POL) – BUY 
Current Price: PKR 480.0
Target Price: PKR 569.4

Power Cement (POWER) – BUY 
Current Price: PKR 18.75
Target Price: PKR 26

Pakistan Petroleum Limited (PPL) – BUY 
Current Price: PKR 176.2
Target Price: PKR 218

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 449.5
Target Price: PKR 490

Pakistan Telecommunications (PTC) – BUY 
Current Price: PKR 16.88
Target Price: PKR 21.9

Tariq Glass (TGL) – BUY 
Current Price: PKR 107.4
Target Price: PKR 120

United Bank Limited (UBL) – BUY 
Current Price: PKR 248.50
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