Pakistan Stock Exchange (PSX) Weekly Analysis 14 May, 2017

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

Top gainers of last week were: AICL, ISL, MCB, FABL, CSAP, BAHL, FML, NESTLE, POL and NML.

Top losers of last week were: IDYM, ACPL, SNBL, PICT, BATA, POML, SHFA, PIBTL, HASCOL and ARM.

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

The Pakistan Stock Exchange (PSX) market index continued to follow positive trajectory for the second consecutive week ahead of Pakistan’s entry into MSCI EM index. KSE-100 index rose by 3.8% to close at 51,751 points whereas volumes/values also improved by 35% to 355mn shares/Rs18bn (US$180mn).

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

• On the sector front; Oil & Gas Exploration sector outperformed the market growing by 7% driven by higher oil prices; followed by Commercial Banks that were up 5%. On the contrary, transport sector was down 2% as pressure was seen in PIA and PIBTL stocks.
• Recent rebound in international crude underpinned by rising optimism of an extension in output cuts by OPEC members helped the local E&Ps to dash beyond 5.5% W/W
• As per the notice Byco Petroleum (BYCO) stated that at a recent meeting, company’s BOD has resolved that following the merger of Byco Oil Pakistan Limited (BOPL) into BYCO, a total of 5bn new shares will be issued to the shareholders of BOPL, consistent with the prescribed ratio of 1.67 shares of BYCO for each share of BOPL as approved under the scheme. To recall, earlier this year (Jan 2017) Sindh High Court (SHC) approved and sectioned the scheme of arrangement governing the merger of BOPL and Byco Terminals Pakistan Limited into BYCO  
• Cement names bobbed up more than 3.5% upon stellar domestic dispatches and auto-assemblers, synonymously, gained more than 2% over dazzling sales during the month of Apr’17
• The Federal Board of Revenue (FBR) documented Rs56 billion worth of property transactions under the amnesty scheme granted for real estate sector during the past five months and through which it collected Rs1.5 billion in taxes
• Engro Fertilizer Limited, the sixth largest urea producer in the world, has demanded government to allow exports of one million tons of urea this year instead of 300,000 tons in order to save the fertiliser from damage
• Cement dispatches increased 6.2 per cent year-on-year to the record level of 33.88 million tonnes in the first 10 months of 2016-17. Domestic consumption was 29.871m tonnes while exports remained 4.01m tonnes in the 10 months
• The government is likely to grant incentives to the telecom sector in the upcoming budget (2017-18), including possible reduction in with-holding tax from 14 to 10 per cent on telecom companies and grant of industry status to the sector
• Pakistan Water and Power Development Authority (Wapda) is expected to raise $500 million by floating bonds in the international capital market backed by partial credit guarantees of the World Bank in a bid to finance the construction of 4,320-megawatt Dasu hydroelectric power project
• The Oil and Gas Regulatory Authority (Ogra) has issued show-cause notices to seven top oil marketing companies (OMCs) for alleged overcharging and substandard sale of petroleum products in Azad Jammu and Kashmir (AJK)
• The Institute of Policy Reforms (IPR) report states that economy of Pakistan faces enduring challenges like twin fiscal and current account deficits, insufficient funds for services and investment, and ineffective public spending
• Foreigners remained net sellers during the week with a net FIPI outflow of USD2.6mn

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 95.53
Target Price: PKR 132

Adamjee Insurance (AICL) – BUY 
Current Price: PKR 81.15
Target Price: PKR 92

Attock Petroleum (APL) – BUY 
Current Price: PKR 684.98
Target Price: PKR 796

Bank Al-Habib Limited (BAHL) – BUY 
Current Price: PKR 58.75
Target Price: PKR 64

Cherat Cement Company Limited (CHCC) – BUY 
Current Price: PKR 198.6
Target Price: PKR 251

Dera Ghazi Khan Cement (DGKC) – BUY 
Current Price: PKR 239.26
Target Price: PKR 270

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 58.88
Target Price: PKR 83

ENGRO Foods (EFOODS) – BUY 
Current Price: PKR 161.11
Target Price: PKR 225

Engro Corporation (ENGRO) – BUY
Current Price: PKR 383.22
Target Price: PKR 400

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 33.0
Target Price: PKR 45.1

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

Fauji Fert Bin Qasim (FFBL) – BUY 
Current Price: PKR 49.99
Target Price: PKR 67

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 97.5
Target Price: PKR 122.0

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 307.29
Target Price: PKR 334

Hascol Petroleum (HASCOL) – BUY 
Current Price: PKR 345.36
Target Price: PKR 428

Hi-Tech Lubricants (HTL) – BUY 
Current Price: PKR 116.12
Target Price: PKR 133

Kot Adu Power (KAPCO) – BUY
Current Price: PKR 76.98
Target Price: PKR 107

K-Electric (KEL) – BUY
Current Price: PKR 8.05
Target Price: PKR 13

Kohat Cement (KOHC) – BUY
Current Price: PKR 257.80
Target Price: PKR 353

Lalpir Power (LPL) – BUY 
Current Price: PKR 21.00
Target Price: PKR 46

Lucky Cement (LUCK) – BUY 
Current Price: PKR 994.65
Target Price: PKR 1,046

Mari Petroleum Ltd. (MARI) – BUY 
Current Price: PKR 1,598.11
Target Price: PKR 2,068.2

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR 254.00
Target Price: PKR 280

Meezan Bank (MEBL) – BUY 
Current Price: PKR 80.30
Target Price: PKR 90

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 120.51
Target Price: PKR 154.0

Millat Tractors Ltd. (MTL) – BUY 
Current Price: PKR 1,462.81
Target Price: PKR 1,594.8

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 68.7
Target Price: PKR 74

National Foods (NATF) – BUY 
Current Price: PKR 326.50
Target Price: PKR 473

Nishat Chunian (NCL) – BUY 
Current Price: PKR 58.65
Target Price: PKR 74

Nishat Chunian Power (NCPL) – BUY 
Current Price: PKR 44.9
Target Price: PKR 59

Nishat Mills (NML) – BUY 
Current Price: PKR 172.19
Target Price: PKR 186

Nishat Power (NPL) – BUY 
Current Price: PKR 49.11
Target Price: PKR 81

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 165.70
Target Price: PKR 200

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 149.2
Target Price: PKR 161

Pakgen Power (PKGP) – BUY 
Current Price: PKR 21.02
Target Price: PKR 47

Pakistan Oilfields Limited (POL) – BUY 
Current Price: PKR 475.7
Target Price: PKR 569.4

Power Cement (POWER) – BUY 
Current Price: PKR 14.54
Target Price: PKR 26

Pakistan Petroleum Limited (PPL) – BUY 
Current Price: PKR 167.3
Target Price: PKR 218

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 454.31
Target Price: PKR 490

Pakistan Telecommunications (PTC) – BUY 
Current Price: PKR 16.16
Target Price: PKR 21.9

The Searle Co. Ltd (SEARL) – BUY 
Current Price: PKR 610.2
Target Price: PKR 816.6

Tariq Glass (TGL) – BUY 
Current Price: PKR 127.65
Target Price: PKR 134

United Bank Limited (UBL) – BUY 
Current Price: PKR 266.77
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