Pakistan Stock Exchange (PSX) Weekly Analysis 26 March, 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: BOP, SPWL, ARM, GHGL, SNGP, AHCL, FML, PAEL, MUREB and BNWM.

Top losers of last week were: AKBL, KEL, SNBL, RMPL, IDYM, ICI, JLICL, FABL, UBL and OLPL.

Top Volume Leaders of last week: KEL, BOP, TRG, SNGP, SSGC, PAEL, HBL. ISL, DGKC, FATIMA, and NML.

The Pakistan Stock Exchange (PSX) market index broke its losing streak despite political noise & low international oil price and closed the week at 48,971pts, up by 1.2% WoW. KSE-100 index has reached on 48,971 by increasing 562 points or 1.16 %, while KSE-30 index reached on 26,174 by increasing 218 points or 0.84 %.

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

• Global crude has been following the downward trajectory lately, mainly due to increased drilling and stockpiles of crude in the US, which kept a lid on the local oil stocks  hereas, PPL rallied over result announcement, which came broadly in-line with street expectations alongside a higher than anticipated payout 
• The Inclusion of five local stocks namely (HBL, NML, SEARL, FCCL, and EFERT) into FTSE Global Equity Index ignited buying spree in these names, while HBL recorded the highest turnover in recent memory during the outgoing week 
• KEL, the vertically integrated electricity giant, remained in market headlines owing to downward revision of its basic tariff coupled with speculations, coming out of the rumor-mill, regarding its likely acquisition being jeopardized. 
• HUBC, on the flip side, remained abuzz amid groundbreaking ceremony of the country’s largest coal based power plant at Hub, Balochistan
• Wi-tribe has announced the launch of 4.5G services, for the first time in Pakistan, which will be made operational by June 2017 in five cities of the country 
• Nepra grants license to Hunza Group for energy generation
• Foreigners turned net buyers in the outgoing week, mopping up USD3.47mn worth of shares against net sell of USD11.08mn in the preceding week
• CAD coming in at US$744mn in Feb’17 taking cumula􀆟ve 8MFY17 deficit to US$5.47bn, up 120%YoY
• PIB yields remaining flat in the latest auc􀆟on with GoP raising PkR28.5bn
• Feb’17 fer􀆟lizer off‐take declining 19%MoM/2%YoY to 491k tons though standing 10%YoY higher in 2MCY17
• HBL announcing plans to sell its Kenyan branches in exchange for 4.18% holding (13.28mn shares) in Diamond Trust Bank Kenya
• PSMC considering shelving its planned US$450mn investment in spare parts plant and capacity expansion
• Steel stocks blipped on investor’s radar; with ASL standing out to return 21% WoW…hitting its upper circuit 4 sessions in a row.
• Pharmaceuticals outperformed with the sector’s cap growing 6.5% WoW, while Cement, Fertilizer and E&P’s gained 0.8-1.2%
• Textile exports fell 2.53% YoY to $1bn in February, mainly driven by lower proceeds from raw material and low value-added products such as cotton yarn and fabrics, according to PBS data. The decline in export proceeds was also evident in rupee terms. However, exports of value-added products grew during the month, both in terms of value and quantity. Product-wise details show that exports of readymade garments rose 5.3pc while that of knitwear grew 2pc in February  

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 95.55
Target Price: PKR 132

Adamjee Insurance (AICL) – BUY 
Current Price: PKR 76.90
Target Price: PKR 92

Attock Petroleum (APL) – BUY 
Current Price: PKR 643.6
Target Price: PKR 796

Al Shaheer Corporation Ltd. (ASC) – BUY 
Current Price: PKR 48.41
Target Price: PKR 82

Bank Al-Falah Limited (BAFL) – BUY 
Current Price: PKR 37.4
Target Price: PKR 42

Bank Al-Habib Limited (BAHL) – BUY 
Current Price: PKR 54.27
Target Price: PKR 64

Dera Ghazi Khan Cement (DGKC) – BUY 
Current Price: PKR 236.1
Target Price: PKR 270

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 65.0
Target Price: PKR 83

ENGRO Foods (EFOODS) – BUY 
Current Price: PKR 171.20
Target Price: PKR 225

Engro Corporation (ENGRO) – BUY
Current Price: PKR 382.88
Target Price: PKR 391

Fauji Cement Company Limited (FCCL) – BUY 
Current Price: PKR 43.5
Target Price: PKR 54

Fauji Fert Bin Qasim (FFBL) – BUY 
Current Price: PKR 54.0
Target Price: PKR 67

General Tyre & Rubber  (GTYR) – BUY 
Current Price: PKR 278.88
Target Price: PKR 313

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 283.98
Target Price: PKR 304

Hascol Petroleum (HASCOL) – BUY 
Current Price: PKR 324.51
Target Price: PKR 428

Hi-Tech Lubricants (HTL) – BUY 
Current Price: PKR 115.72
Target Price: PKR 133

Indus Motors (INDU) – BUY
Current Price: PKR 1,601.31
Target Price: PKR 1,974

Kot Adu Power (KAPCO) – BUY
Current Price: PKR 80.93
Target Price: PKR 107

K-Electric (KEL) – BUY
Current Price: PKR 8.7
Target Price: PKR 13

Kohat Cement (KOHC) – BUY
Current Price: PKR 271.6
Target Price: PKR 353

Lalpir Power (LPL) – BUY 
Current Price: PKR 22.44
Target Price: PKR 46

Lucky Cement (LUCK) – BUY 
Current Price: PKR 882.75
Target Price: PKR 1,046

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 126.3
Target Price: PKR 165

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR 229.98
Target Price: PKR 280

Meezan Bank (MEBL) – BUY 
Current Price: PKR 70
Target Price: PKR 72

National Foods (NATF) – BUY 
Current Price: PKR 338.34
Target Price: PKR 473

Nishat Chunian Power (NCPL) – BUY 
Current Price: PKR 48
Target Price: PKR 59

Nishat Power (NPL) – BUY 
Current Price: PKR 51.47
Target Price: PKR 81

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 147.2
Target Price: PKR 200

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 141.5
Target Price: PKR 161

Pakgen Power (PKGP) – BUY 
Current Price: PKR 22.27
Target Price: PKR 47

Pakistan Oilfields Limited (POL) – BUY 
Current Price: PKR 458.70
Target Price: PKR 569.4

Power Cement (POWER) – BUY 
Current Price: PKR 20.34
Target Price: PKR 26

Pakistan Petroleum Limited (PPL) – BUY 
Current Price: PKR 157.0
Target Price: PKR 218

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 438.0
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 120.0
Target Price: PKR 134

United Bank Limited (UBL) – BUY 
Current Price: PKR 229.4
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