Pakistan Stock Exchange (PSX) Weekly Analysis 23 April, 2017

BUY recommendations are ABL, AICL, APL, ASC, BAFL, BAHL, DGKC, EFERT, EFOODS, ENGRO, FCCL, FFBL, FFC, GWLC, HBL, HASCOL, HTL, INDU, KAPCO, KEL, KOHC, LPL, LUCK, MCB, MEBL, MLCF, MTL, NBP, NATF, NCL, NCPL, NML, NPL, OGDC, PIOC, PKGP, POL, POWER, PPL, PSO, PTC, SEARL, TGL and UBL..

Top gainers of last week were: PAEL, SNGP, CHCC, TRG, HCAR, MARI, GHGL, MTL, HASCOL and NML.

Top losers of last week were: FML, ATRL, ISL, SPWL, NPL, MCB, IBFL, PICT, SRVI and OLPL.

Top Volume Leaders of last week: TRG, KEL, BOP, SSGC, SNGP, PAEL, FCCL, ISL, EFERT, PIBTL, and JSCL.

The Pakistan Stock Exchange (PSX) market index started off on a weaker note but gained momentum during the latter half of the week, posting the highest ever intra-day level of 49,505pts following the Panama verdict which was taken positively by the investors. KSE-100 index has reached on 49,709 by increasing 2132 points or 4.48 %, while KSE-30 index reached on 26,454 by increasing 1242 points or 4.93 %.

Average daily traded volumes also picked up by +62%WoW to 278mn with foreigners remaining net sellers offloading shares worth USD31.97mn vs. USD2.84mn in previous week, with increased volumes allowing them to book gains and reshuffle their portfolios.

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

• With verdict on Panama case out, the benchmark KSE‐100 index returned 4.48%WoW to close the week at 49,709pts. In this regard, Supreme Court (SC) while forming a Joint Investigation Team (JIT) stayed short of disqualifying the Prime Minister (PM) in the Panama ‐gate decision. The JIT (to be comprised of one senior official each from the FIA, NAB, SECP, SBP, ISI and MI) has been tasked to further probe offshore assets (incl. money transfer to Qatar) of the PM’s family
• Amreli Steel Ltd. announced expansion in its Billets and Rebar capacity 
• Punjab Government unveiled its plan to launch the Orange cap scheme as a youth employment initiative. This initiative is expected to benefit PSMC and the stock was seen closing at its upper limit during the day
• Net foreign direct investment (FDI) soared 12.4%YoY to US$1.6bn during 9MFY17
• FY18 federal budget would be presented on May 16’17 as announced by Finance Minister
• Current account deficit (CAD) increased by 161%YoY to US$6.13bn during 9MFY17
• The Planning Commission has received a demand of PKR1.8trn from various ministries and agencies for next year’s development schemes, but the commission was proposing PKR1trn for the PSDP of FY18 
• The country’s total FX reserves dropped to US$21.57bn by April 14, 2017, down 0.8% WoW. Reserves held by SBP fell to US$16.42bn from US$16.69bn in the previous week, while reserves held by Commercial Banks rose 1.9% WoW to US$5.15bn from US$5.06bn last week 
• The government has decided to announce the budget for financial year 2017-18 on May 26
• The Auto Indus-try Development Committee (AIDC) has reportedly approved Brownfield status for M/s Dewan Farooque Motors Limited (DFML) and rejected application of existing player M/s Al-Haj FAW Motors (Pvt) Ltd which sought Greenfield status, well-informed sources told Business Recorder
• The government is set to increase the rates of 56 withholding taxes (WHTs) for non-filers of income tax returns in the next fiscal year
• Oil & Gas Development Company (OGDC) announced 3QFY17 EPS of Rs4.1/sh, up 89% YoY and inline with our expectations. Earnings growth stemmed from higher oil prices & production. OGDC announced interim cash dividend of Rs1.5/share
• National Bank of Pakistan (NBP) announced 1Q2017 consolidated EPS of Rs1.98/sh, up 3% YoY. Despite flat Net Interest Income (NII), earnings were supported by 62% YoY higher capital gains. The result was inline with our expectations
• Fatima Fertilizer (FATIMA) announced 1Q2017 consolidated EPS of Rs0.91/sh, up 117% YoY and inline with our expectations. Earnings growth stemmed from better off-take and lower discounts offered
• Kot Addu Power Company (KAPCO) reported 3QFY17 EPS of Rs2.9, up 38% YoY and inline with market expectations

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 94.2
Target Price: PKR 132

Adamjee Insurance (AICL) – BUY 
Current Price: PKR 73.02
Target Price: PKR 92

Attock Petroleum (APL) – BUY 
Current Price: PKR 653.1
Target Price: PKR 796

Al Shaheer Corporation Ltd. (ASC) – BUY 
Current Price: PKR 47.62
Target Price: PKR 82

Bank Al-Falah Limited (BAFL) – BUY 
Current Price: PKR 38.4
Target Price: PKR 42

Bank Al-Habib Limited (BAHL) – BUY 
Current Price: PKR 52.24
Target Price: PKR 64

Dera Ghazi Khan Cement (DGKC) – BUY 
Current Price: PKR 230.8
Target Price: PKR 270

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 62.6
Target Price: PKR 83

ENGRO Foods (EFOODS) – BUY 
Current Price: PKR 161.66
Target Price: PKR 225

Engro Corporation (ENGRO) – BUY
Current Price: PKR 367.24
Target Price: PKR 391

Fauji Cement Company Limited (FCCL) – BUY 
Current Price: PKR 44.1
Target Price: PKR 54

Fauji Fert Bin Qasim (FFBL) – BUY 
Current Price: PKR 53.0
Target Price: PKR 67

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 101.2
Target Price: PKR 122.0

Gharibwal Cement Ltd (GWLC) – BUY 
Current Price: PKR 62.0
Target Price: PKR 104.0

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 275.6
Target Price: PKR 304

Hascol Petroleum (HASCOL) – BUY 
Current Price: PKR 347.76
Target Price: PKR 428

Hi-Tech Lubricants (HTL) – BUY 
Current Price: PKR 108.01
Target Price: PKR 133

Indus Motors (INDU) – BUY
Current Price: PKR 1,757.9
Target Price: PKR 1,974

Kot Adu Power (KAPCO) – BUY
Current Price: PKR 75.92
Target Price: PKR 107

K-Electric (KEL) – BUY
Current Price: PKR 8.2
Target Price: PKR 13

Kohat Cement (KOHC) – BUY
Current Price: PKR 276.0
Target Price: PKR 353

Lalpir Power (LPL) – BUY 
Current Price: PKR 20.79
Target Price: PKR 46

Lucky Cement (LUCK) – BUY 
Current Price: PKR 892.3
Target Price: PKR 1,046

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR 212.72
Target Price: PKR 280

Meezan Bank (MEBL) – BUY 
Current Price: PKR 79.38
Target Price: PKR 90

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 124.6
Target Price: PKR 154.0

Millat Tractors Ltd. (MTL) – BUY 
Current Price: PKR 1,385.1
Target Price: PKR 1,594.8

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 63.3
Target Price: PKR 74

National Foods (NATF) – BUY 
Current Price: PKR 331.27
Target Price: PKR 473

Nishat Chunian (NCL) – BUY 
Current Price: PKR 57.8
Target Price: PKR 74

Nishat Chunian Power (NCPL) – BUY 
Current Price: PKR 46.43
Target Price: PKR 59

Nishat Mills (NML) – BUY 
Current Price: PKR 166.7
Target Price: PKR 186

Nishat Power (NPL) – BUY 
Current Price: PKR 49.60
Target Price: PKR 81

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 153.4
Target Price: PKR 200

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 145.0
Target Price: PKR 161

Pakgen Power (PKGP) – BUY 
Current Price: PKR 20.79
Target Price: PKR 47

Pakistan Oilfields Limited (POL) – BUY 
Current Price: PKR 477.85
Target Price: PKR 569.4

Power Cement (POWER) – BUY 
Current Price: PKR 19.71
Target Price: PKR 26

Pakistan Petroleum Limited (PPL) – BUY 
Current Price: PKR 162.5
Target Price: PKR 218

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 443.4
Target Price: PKR 490

Pakistan Telecommunications (PTC) – BUY 
Current Price: PKR 16.76
Target Price: PKR 21.9

The Searle Co. Ltd (SEARL) – BUY 
Current Price: PKR 677.7
Target Price: PKR 816.6

Tariq Glass (TGL) – BUY 
Current Price: PKR 117.1
Target Price: PKR 134

United Bank Limited (UBL) – BUY 
Current Price: PKR 245.7
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