Pakistan Stock Exchange (PSX) Weekly Analysis 4 Sep, 2017

BUY recommendations are:  ABL, ACPL, AICL, APL, CHCC, DGKC, EFERT, ENGRO, FATIMA, FCCL, FFBL, FFC, HASCOL, HCAR, HTL, HUBC, INDU, KOHC, LPL, LUCK, MARI, MCB, MLCF, NATF, NBP, NCL, NCPL, NML, NPL, OGDC, PAEL, PIOC, PKGP, POL, POWER, PPL, PSMC, PSO and UBL.

Top gainers of last week were: SCBPL, IBFL, PMPK, MLCF, DAWH, THALL, OLPL, SHFA, ATRL and ARM.

Top losers of last week were: HBL, MARI, FEROZ, SRVI, CJPL, HCAR, JLICL, TRG, NBP and SPWL.

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

The Pakistan Stock Exchange (PSX) market index persisted on its downward trajectory in the outgoing week as it tested the 41K level, managing to end the week marginally above this psychological limit. KSE-100 index has closed on 41,206 by losing -1,436 points or -3.4%.

Average trading volumes slumped, falling 40%WoW to 109mn shares from 180mn in previous week. Activity was focused in retail favorite stocks, which included TRG (55mn), ANL (49mn), SSGC (26mn), ASL (19mn) and BOP (19mn).

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


  • Volumes were bone dry across the board as investors were weary of market conditions and opted to stay on the side lines ahead of the long weekend
  • Foreigners' net selling stood at USD8.8mn during the first three days of the week while Companies and Banks/DFIs absorbed the selling with net buying of USD10.5mn and USD3.6mn, respectively
  • Government has raised Petrol price by Rs2/ltr to Rs71.5/ltr from 1st Sep, Diesel price remains unchanged at Rs77.4/ltr
  • Pakistan’s population soaring to 208mn in latest census
  • As monsoon rains continue to lash the city, the Karachi administration has requested Pakistan Army for assistance in conduct of rescue and relief activities in the city. “Karachi administration requested army for assistance in managing torrential rain effect in city,” the Inter-Services Public Relations (ISPR) said
  • The new spell of rains in Sindh will affect phutti (seed cotton) quality as excess moisture directly impacts cotton. Ginning factories refuse to buy cotton that contains moisture. “It’s not just cotton. There are onion, paddy and sugarcane crops that can face serious damages if heavy rain continues,” said Mahmood Nawaz Shah, a cotton grower and vice president of SAB. He said the current rainfall has already caused a 50pc loss to the remainder of the crop that is ready to be harvested. Accumulation of rainwater is largely due to drainage that fails to work in heavy rain
  • Foreigners' net selling stood at USD8.8mn during the first three days of the week while Companies and Banks/DFIs absorbed the selling with net buying of USD10.5mn and USD3.6mn, respectively
  • Government has raised Petrol price by Rs2/ltr to Rs71.5/ltr from 1st Sep, Diesel price remains unchanged at Rs77.4/ltr
  • Pakistan’s population soaring to 208mn in latest census
  • As monsoon rains continue to lash the city, the Karachi administration has requested Pakistan Army for assistance in conduct of rescue and relief activities in the city. “Karachi administration requested army for assistance in managing torrential rain effect in city,” the Inter-Services Public Relations (ISPR) said
  • GoP’s decision to sell its remaining stake in MARI through an SPO, proved to be a hefty blow for the stock as it pared gains made in recent days
  • The result season did not witness any major results during the outgoing week, which also played its part in evaporation of volumes from the market
  • The release of fertilize statistics proved to be a dampener for the sector amid lower urea sales on account of higher base seen last month, while on the DAP front EFERT managed to take a lead ahead of FFBL
  • Cement off-take registered a notable spike which helped the sector salvage some pride in the face of recent hammering driven by rumors of the pricing arrangement being derailed
  • Foreigners remained net sellers at the local index as FIPI recorded a MTD outflow of USD74.76mn while the eventful week saw a sum of USD8.74mn being traced outwards, especially in banking names. The remaining results season especially in oils and cements may bring some volumes, bringing a halt to the ongoing lull 
  • The government is likely to import Liquefied Natural Gas (LNG) and POL products from Maldives after an Inter-Governmental Agreement (IGA) is inked between the two countries
  • Profits and dividends on foreign direct investment (FDI) repatriated in July amounted to $142 million compared to $125m in the same month of last fiscal year, the central bank reported on Friday
  • Puma Energy, a Singapore-based midstream and downstream oil firm, acquired a majority stake in oil marketing company Admore Gas Pvt Ltd to roll out its products in the country with growing gasoline consumption 
  • Shares of Habib Bank Ltd (HBL) hit their lower lock on Monday as news of a possible fine of up to $630 million broke in the morning. The bank informed its shareholders about the development through a letter to the Pakistan Stock Exchange (PSX). It also announced the closure of its New York branch after receiving notice from the New York Department of Financial Services (DFS) 
  • Amreli Steels Ltd informed the Pakistan Stock Exchange (PSX) on Monday about the second phase of its expansion plan and its current status. Its board approved the second phase of the expansion plan on April 20 
  • The mobile phone imports surged by 48.41 per cent to $68.57 million during the first month of this fiscal year compared to $46.20m last in July 2016, according to the data of Pakistan Bureau of Statistics (PBS) 
  • Edotco Group in partnership with Dawood Hercules Corporation Ltd (DH Corp) announced the acquisition of approximately 13,000 towers from Pakistan Mobile Communications Limited (Jazz) 
  • Ali Jahangir Siddiqui has been appointed as Special Assistant to the Prime Minister with the status of Minister of State

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 86.86
Target Price: PKR 132

Attock Cement (ACPL) – BUY 
Current Price: PKR 207.00
Target Price: PKR 380

Adamjee Insurance (AICL) – BUY 
Current Price: PKR 61.46
Target Price: PKR 92

Attock Petroleum (APL) – BUY 
Current Price: PKR 635.00
Target Price: PKR 796

Cherat Cement Company Limited (CHCC) – BUY 
Current Price: PKR 141.15
Target Price: PKR 251

Dera Ghazi Khan Cement (DGKC) – BUY 
Current Price: PKR 155.48
Target Price: PKR 262.0

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 57.89
Target Price: PKR 83

ENGRO Corporations (ENGRO) – BUY 
Current Price: PKR 283.51
Target Price: PKR 400

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 28.59
Target Price: PKR 45.1

Fauji Cement Company Limited (FCCL) – BUY 
Current Price: PKR 34.31
Target Price: PKR 54

Fauji Fert Bin Qasim (FFBL) – BUY 
Current Price: PKR 33.53
Target Price: PKR 67

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 70.86
Target Price: PKR 122.0

Hascol Petroleum (HASCOL) – BUY 
Current Price: PKR 316.93
Target Price: PKR 428

Honda Atlas Cars (Pak) Ltd. (HCAR) – BUY 
Current Price: PKR 550.2
Target Price: PKR 912.2

Hi-Tech Lubricants (HTL) – BUY 
Current Price: PKR 101.28
Target Price: PKR 133

HUBCO (HUBC) – BUY 
Current Price: PKR 113.09
Target Price: PKR 144

Indus Motors (INDU) – BUY 
Current Price: PKR 1,744.54
Target Price: PKR 2,214.3

Kohat Cement (KOHC) – BUY
Current Price: PKR 184.50
Target Price: PKR 353

Lalpir Power (LPL) – BUY 
Current Price: PKR 21.21
Target Price: PKR 32

Lucky Cement (LUCK) – BUY 
Current Price: PKR 597.00
Target Price: PKR 1,159.0

MARI Petroleum (MARI) – BUY 
Current Price: PKR 1,435.9
Target Price: PKR 2051

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR 193.5
Target Price: PKR 250

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 92.02
Target Price: PKR 179.0

National Foods (NATF) – BUY 
Current Price: PKR 352.00
Target Price: PKR 473

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 55.53
Target Price: PKR 74

Nishat Chunian (NCL) – BUY 
Current Price: PKR 52.21
Target Price: PKR 74

Nishat Chunian Power (NCPL) – BUY 
Current Price: PKR 40.39
Target Price: PKR 59

Nishat Mills (NML) – BUY 
Current Price: PKR 142.87
Target Price: PKR 186

Nishat Power (NPL) – BUY 
Current Price: PKR 45.44
Target Price: PKR 81

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 141.10
Target Price: PKR 200

Pak Elektron Ltd. (PAEL) – BUY 
Current Price: PKR 73.4
Target Price: PKR 126.1

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 99.54
Target Price: PKR 161

Pakgen Power (PKGP) – BUY 
Current Price: PKR 21.52
Target Price: PKR 34

Pakistan Oilfields Limited (POL) – BUY 
Current Price: PKR 480.39
Target Price: PKR 518

Power Cement (POWER) – BUY 
Current Price: PKR 10.89
Target Price: PKR 26

Pakistan Petroleum Limited (PPL) – BUY 
Current Price: PKR 165.2
Target Price: PKR 218

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 448.77
Target Price: PKR 800.7

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 419.85
Target Price: PKR 490

United Bank Limited (UBL) – BUY 
Current Price: PKR 186.13
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. The information given in this blog /forum (http://www.karachistockexchange.org/) is as of the date of this post and there can be no assurance that future results or events will be consistent with this information. This post is provided for assistance only and is not intended to be and must not alone be taken as the basis for any investment decision. The user assumes the entire risk of any use made of this information. Each viewer of this post should make such investigation as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this post (including the merits and risks involved), and should consult his or her own advisors to determine the merits and risks of such investment. This blog /forum (http://www.karachistockexchange.org/)  or any of its affiliates shall not be in any way responsible for any loss or damage that may be arise to any person from any inadvertent error in the information contained in this post.

Written by: Rana Khuram

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