Pakistan Stock Exchange (PSX) Weekly Analysis 28 May, 2017

BUY recommendations are ABL, AICL, APL, BAHL, CHCC, DGKC, EFERT, EFOODS, FATIMA, FCCL, FFBL, FFC, HBL, HASCOL, HTL, HUBCO, 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: THALL, ISL, HASCOL, PSMC, DAWH, IDYM, ICI, PAEL, OGDC and MEBL.

Top losers of last week were: CJPL, FML, PICT, NPL, ACPL, BOP, JDWS, BWCL, IGIIL and MUREB.

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

The Pakistan Stock Exchange (PSX) market index started the week on a bullish note as the MSCI led excitement made a comeback with top index names especially those in oil and banking propelled the benchmark to within touching distance of the coveted 53K level.  KSE-100 gained 1,895pts in the outgoing week as investors accumulated index heavy names ahead of MSCI EM inclusion next week. Index point leaders were OGDC (+9.4%), ENGRO (+7.4%), HUBC (+6.6%), PPL (+7.3%) & HBL (+3%) adding 720pts. In terms of absolute return, MSCI EM Small Cap surprises THALL & ISL gained almost 15% during the outgoing week.

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

• The market’s traction subsided in the later half of the week as the approach of federal budget and the holy month of Ramadan from next week prompted investors to book gains
• Tax on dividends increased from 12.5% to 15.0%.
• A blanket rate of 15% Capital Gains Tax on filers and 20% on non-filers has been imposed
• Tax on dividend income from mutual funds to be raised from existing 10.0% to 12.5%
• Corporate tax rate reduced by 1% to 30%
• Super tax of 3/4% on non-banking companies/banks extended for another year
• Tax credit on stock exchange listing to be increased from current 20% for first two years to 20% for two years and 10% for each of the third and fourth years
• Minimum turnover tax to be increased from 1% to 1.25%
• Minimum wage increased from PKR14,000 to 15,000 per month
• Withholding tax exemptions will be given on withdrawal of cash from branchless banking
• Islamic Banking instruments such as - Musharika, Ijarah, Murabaha to be taxed in line with conventional products
• National Bank of Pakistan and ZTBL will launch a scheme for farmers with holdings of less than 12.5 acres to provide agricultural loans at a reduced rate of 9.9% per annum (total project outlay: PKR1,001bn)
• A PKR8bn fund will be set up at the State Bank of Pakistan to provide loans to low-income segments through microfinance banks
• Tax on interest income where markup does not exceed PKR5mn to be levied at 10% between PKR5-25mn-12.5%, and above PKR25mn-15.0%
• Finance ministry has termed current account deficit (CAD) projection of 3.1 percent, set by the planning ministry for the next fiscal year, as ‘too high’, saying such a forecast might affect the country’s foreign ratings, sources said on Friday. The ministry of planning, in a summary for-warded to the National Economic Council (NEC), revised down current account deficit to 2.7 percent of GDP, or $9.1 billion, for 2017/18, from an earlier 3.1 percent or $10.4 billion
• Government will soon start offering re-gasified liquefied natural gas (RLNG) connections to commercial consumers for the first time as locally-produced gas is not available for them in the Punjab, officials said on Friday. Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi confirmed that the government planned to supply RLNG to commercial consumers. Ample RLNG supplies are available for domestic use and it would be a wise move to utilise the fuel wherever required, Abbasi said
• ICI Pakistan Limited is pleased to announce that on May 19, 2017, the Company executed Asset Purchase Agreements with Wyeth Pakistan Limited and Pfizer Pakistan Limited, for the acquisition of certain assets at the aggregate purchase price of PKR 1.91 billion
• The Oil and Gas Regulatory Authority (Ogra) has allowed Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) to lay 18,531km gas pipelines in their respective operational areas at the cost of Rs29,371 million during the last five years
• The Ministry of Water and Power on Monday briefed the Public Accounts Committee (PAC) regarding the status of power generation in the country

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 99.97
Target Price: PKR 132

Adamjee Insurance (AICL) – BUY 
Current Price: PKR 80.18
Target Price: PKR 92

Attock Petroleum (APL) – BUY 
Current Price: PKR 682.62
Target Price: PKR 796

Bank Al-Habib Limited (BAHL) – BUY 
Current Price: PKR 62.93
Target Price: PKR 64

Cherat Cement Company Limited (CHCC) – BUY 
Current Price: PKR 188.88
Target Price: PKR 251

Dera Ghazi Khan Cement (DGKC) – BUY 
Current Price: PKR 242.88
Target Price: PKR 270

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 59.15
Target Price: PKR 83

ENGRO Foods (EFOODS) – BUY 
Current Price: PKR 157.58
Target Price: PKR 225

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 33.08
Target Price: PKR 45.1

Fauji Cement Company Limited (FCCL) – BUY 
Current Price: PKR 46.41
Target Price: PKR 54

Fauji Fert Bin Qasim (FFBL) – BUY 
Current Price: PKR 49.61
Target Price: PKR 67

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 96.78
Target Price: PKR 122.0

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 299.22
Target Price: PKR 334

Hascol Petroleum (HASCOL) – BUY 
Current Price: PKR 389.41
Target Price: PKR 428

Hi-Tech Lubricants (HTL) – BUY 
Current Price: PKR 120.21
Target Price: PKR 133

HUBCO (HUBC) – BUY 
Current Price: PKR 132.60
Target Price: PKR 144

Kot Adu Power (KAPCO) – BUY
Current Price: PKR 77.09
Target Price: PKR 107

K-Electric (KEL) – BUY
Current Price: PKR 7.82
Target Price: PKR 13

Kohat Cement (KOHC) – BUY
Current Price: PKR 245.37
Target Price: PKR 353

Lalpir Power (LPL) – BUY 
Current Price: PKR 20.87
Target Price: PKR 46

Lucky Cement (LUCK) – BUY 
Current Price: PKR 952.45
Target Price: PKR 1,046

Mari Petroleum Ltd. (MARI) – BUY 
Current Price: PKR 1,687.43
Target Price: PKR 2,068.2

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR 242.56
Target Price: PKR 280

Meezan Bank (MEBL) – BUY 
Current Price: PKR 85.02
Target Price: PKR 90

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 118.54
Target Price: PKR 154.0

Millat Tractors Ltd. (MTL) – BUY 
Current Price: PKR 1,550.85
Target Price: PKR 1,594.8

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 67.09
Target Price: PKR 74

National Foods (NATF) – BUY 
Current Price: PKR 332
Target Price: PKR 473

Nishat Chunian (NCL) – BUY 
Current Price: PKR 61.82
Target Price: PKR 74

Nishat Chunian Power (NCPL) – BUY 
Current Price: PKR 44.60
Target Price: PKR 59

Nishat Mills (NML) – BUY 
Current Price: PKR 177.74
Target Price: PKR 186

Nishat Power (NPL) – BUY 
Current Price: PKR 46.02
Target Price: PKR 81

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 183.77
Target Price: PKR 200

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 146.14
Target Price: PKR 161

Pakgen Power (PKGP) – BUY 
Current Price: PKR 20.77
Target Price: PKR 47

Pakistan Oilfields Limited (POL) – BUY 
Current Price: PKR 520.74
Target Price: PKR 569.4

Power Cement (POWER) – BUY 
Current Price: PKR 15.34
Target Price: PKR 26

Pakistan Petroleum Limited (PPL) – BUY 
Current Price: PKR 183.49
Target Price: PKR 218

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 473.34
Target Price: PKR 490

Pakistan Telecommunications (PTC) – BUY 
Current Price: PKR 16.10
Target Price: PKR 21.9

The Searle Co. Ltd (SEARL) – BUY 
Current Price: PKR 615.44
Target Price: PKR 816.6

Tariq Glass (TGL) – BUY 
Current Price: PKR 127.22
Target Price: PKR 134

United Bank Limited (UBL) – BUY 
Current Price: PKR 256.92
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