Pakistan Stock Exchange (PSX) Weekly Analysis 5 June, 2017

BUY recommendations are ABL, AICL, APL, BAHL, CHCC, DGKC, EFERT, EFOODS, FATIMA, FCCL, FFBL, FFC, GWLC, 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: COLG, ACPL, JLICL, SPWL, MUREB, ARM, IDYM, PSEL, PMPK and BATA.

Top losers of last week were: HBL, LUCK, JDWS, UBL, MCB, IGIIL, ENGRO, OGDC, CSAP and PAEL.

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

The Pakistan Stock Exchange (PSX) market index crashed 4,082 pts in the outgoing week as investors accumulated index heavy names ahead of MSCI EM inclusion in the hopes of selling to foreigners at higher rates.  KSE-100 reached on 48,555 by losing 4,082 points or -7.75%. While KSE -30 index reached on 25,376 by losing 2571 points or -9.20%.

Average daily volumes remained at 294.84mn shares while average traded value soared to its decade high of US$240.16mn.

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

  • Contrary to expectations, fiscal prudence superseded election year populist measures in Budget FY18 while unexpected tax restructuring on the stock market induced further volatility (flat 15% CGT regardless of holding period, enhancement of tax on dividend to 15%) 
  • Transition to MSCI EM index triggered a sell‐off on likely rebalancing of portfolios
  • The advent of Ramadan usually results in muted trading activity, which may take a strong grip in the days to come especially if the bourse fails to recover
  • The federal budget proposal and spike in development spending for the next fiscal year have promising elements for banks and other financial companies
  • The government has earmarked Rs 40 billion for Pakistan Railways (PR) for the fiscal year 2017-18 to meet its losses against Rs 37 billion allocated for 2016-17 as Railways earnings witnessed a decline in the current fiscal year, revealed budget documents
  • The price of cement is likely to increase by Rs 12 per 50-kg bag after an in-crease in federal excise duty (FED) from Rs 1 to Rs 1.25 per kg as per federal budget 2017-18
  • The pharmaceutical industry has welcomed reduction of customs duty on pre-fabricated modular clean rooms panels from 20 percent to 3 percent in the 2017-18 federal budget
  • Cherat Cement offers agreement to Railways: Cherat Cement Company has offered an agreement to Pakistan Railways for the transfer of loads of cement and coal
  • Foreign investors sold stocks worth USD149.5mn during the week which was primarily absorbed by individuals, banks, insurance companies and mutual funds
  • On the sector front; Banks were the worst hit with their capitalization shrinking 10% WoW as HBL, UBL & MCB declined b/w 13-14% eroding 1,154pts; followed by E&P’s (-9.4%) as OGDC (-11.4%) & PPL (-9.4%) took away 436pts, Cements contracted 8.7% as LUCK (-14%) & DGKC (-8%) dented 443pts, while Fertilizers fell 7% lead by ENGRO (-12%) & DAWH (-7%) held back 293pts 
  • According to The News; PM’s son Hassan Nawaz appears before Panama JIT: Prime Minister Nawaz Sharif’s younger son Hassan Nawaz appeared before the Supreme Court’s appointed Joint Investigation Team (JIT) on Friday, a day after his elder brother answered JIT questions third time regarding Sharif Family’s offshore properties. Meanwhile, Hussain Nawaz has been asked to appear again on June 03 for the fourth time


Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 96
Target Price: PKR 132

Adamjee Insurance (AICL) – BUY 
Current Price: PKR 75
Target Price: PKR 92

Attock Petroleum (APL) – BUY 
Current Price: PKR 681.0
Target Price: PKR 796

Bank Al-Habib Limited (BAHL) – BUY 
Current Price: PKR 56
Target Price: PKR 64

Cherat Cement Company Limited (CHCC) – BUY 
Current Price: PKR 184.0
Target Price: PKR 251

Dera Ghazi Khan Cement (DGKC) – BUY 
Current Price: PKR 222.9
Target Price: PKR 270

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 57.2
Target Price: PKR 83

ENGRO Foods (EFOODS) – BUY 
Current Price: PKR 142.7
Target Price: PKR 225

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 31.0
Target Price: PKR 45.1

Fauji Cement Company Limited (FCCL) – BUY 
Current Price: PKR 43.3
Target Price: PKR 54

Fauji Fert Bin Qasim (FFBL) – BUY 
Current Price: PKR 46.70
Target Price: PKR 67

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 93.7
Target Price: PKR 122.0

Gharibwal Cement Ltd (GWLC) – BUY 
Current Price: PKR 60.3
Target Price: PKR 104.0

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 256.0
Target Price: PKR 334

Hascol Petroleum (HASCOL) – BUY 
Current Price: PKR 367
Target Price: PKR 428

Hi-Tech Lubricants (HTL) – BUY 
Current Price: PKR 114.02
Target Price: PKR 133

HUBCO (HUBC) – BUY 
Current Price: PKR 126.1
Target Price: PKR 144

Kot Adu Power (KAPCO) – BUY
Current Price: PKR 73.34
Target Price: PKR 107

K-Electric (KEL) – BUY
Current Price: PKR 7.3
Target Price: PKR 13

Kohat Cement (KOHC) – BUY
Current Price: PKR 235.1
Target Price: PKR 353

Lalpir Power (LPL) – BUY 
Current Price: PKR 20.88
Target Price: PKR 46

Lucky Cement (LUCK) – BUY 
Current Price: PKR 818.6
Target Price: PKR 1,046

Mari Petroleum Ltd. (MARI) – BUY 
Current Price: PKR 1,600.14
Target Price: PKR 2,068.2

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR 210.8
Target Price: PKR 280

Meezan Bank (MEBL) – BUY 
Current Price: PKR 81.02
Target Price: PKR 90

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 108.2
Target Price: PKR 154.0

Millat Tractors Ltd. (MTL) – BUY 
Current Price: PKR 1,455.40
Target Price: PKR 1,594.8

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 64
Target Price: PKR 74

National Foods (NATF) – BUY 
Current Price: PKR 307.50
Target Price: PKR 473

Nishat Chunian (NCL) – BUY 
Current Price: PKR 57.60
Target Price: PKR 74

Nishat Chunian Power (NCPL) – BUY 
Current Price: PKR 43.6
Target Price: PKR 59

Nishat Mills (NML) – BUY 
Current Price: PKR 165
Target Price: PKR 186

Nishat Power (NPL) – BUY 
Current Price: PKR 45.5
Target Price: PKR 81

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 162.9
Target Price: PKR 200

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 141.1
Target Price: PKR 161

Pakgen Power (PKGP) – BUY 
Current Price: PKR 20.55
Target Price: PKR 47

Pakistan Oilfields Limited (POL) – BUY 
Current Price: PKR 511
Target Price: PKR 569.4

Power Cement (POWER) – BUY 
Current Price: PKR 14.27
Target Price: PKR 26

Pakistan Petroleum Limited (PPL) – BUY 
Current Price: PKR 166.3
Target Price: PKR 218

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 435.8
Target Price: PKR 490

Pakistan Telecommunications (PTC) – BUY 
Current Price: PKR 15.5
Target Price: PKR 21.9

The Searle Co. Ltd (SEARL) – BUY 
Current Price: PKR 581.93
Target Price: PKR 816.6

Tariq Glass (TGL) – BUY 
Current Price: PKR 120.85
Target Price: PKR 134

United Bank Limited (UBL) – BUY 
Current Price: PKR 222.7
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

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