Pakistan Stock Exchange (PSX) Weekly Analysis 8 Oct, 2017

BUY recommendations are:  ABL, ACPL, AICL, AKBL, APL, ASL, ASTL, BAFL, BAHL, CHCC, DGKC, EFERT, EFOODS, ENGRO, FATIMA, FCCL, FFBL, FFC, GWLC, HBL, HMB, HASCOL, HCAR, HMB, HTL, HUBC, INDU, ISL, KOHC, LPL, LUCK, MARI, MCB, MEBL, MLCF, NBP, NATF, NCL, NCPL, NML, NPL, OGDC, PAEL, PIOC, PKGP, POWER, PPL, PSMC, PSO, PTC, TGL and UBL.

Top gainers of last week were: NCL, PSEL, IBFL, PSMC, MARI, JDWS, THALL, NPL, FFBL and JSCL.

Top losers of last week were: CSAP, ATRL, SNGP, ATLH, SSGC, PIOC, PGF, SEARL, CHCC, and ASTL.

Top Volume Leaders of last week: TRG, KEL, BOP, MLCF, SSGC, NCL, SNGP, DGKC, PAEL and FCCL.

The Pakistan Stock Exchange (PSX) market index came under the political hammer yet again as the benchmark KSE-100 index lost 1,948pts (-4.6%) during the first three days of the week, however spurt of positive sectors-related news flows helped the index gain 844pts (+2.1%) on Friday. KSE-100 index has closed on 41,312.59 by losing -1,096.68 points or -2.6 %.

Average trading volumes for the week clocked in at 140mn shares, down 18% WoW as investors remained vary of the market amidst the ongoing NAB proceedings against the Ex-PM Nawaz Sharif and family.

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

• SBP in its recent monetary policy kept policy rates unchanged and maintains policy rate at 5.75% yet again, in-line with expectation
• The cement sector helped pullback up the sentiments on Friday as rumors of settlement between manufacturers over pricing arrangement circulated in the market along with Wednesday’s release of better-than-expected dispatches numbers for the month of Sept-2017 
• As per the data released by APCMA, cement sector dispatched 3.19mn tons (local 2.79mn, export 0.40mn tons) in Sep’17, up by 5%YoY. Local consumption was up by 10%YoY while export went down by 23%YoY
• Foreign exchange reserve continued to slide downwards, reporting a weekly decline of US$228mn, where more concerning reserves held by the State Bank of Pakistan (SBP) dropped to a 25-month low of US$13.86bn 
• The CPI inflation for Sept-2017 was also released on Monday, with headline inflation clocking in expectedly at 3.9% YoY and 0.6% MoM
• Inflation edged up from last month’s reading of 3.4% YoY because of higher food prices
• Cotton production registering 50% YoY growth
• Shanghai Electric writing to NEPRA highlighting the new multi-year tariff for K-Electric (KEL) as a major impediment in its endeavours to purchase the utility
• Pioneer Cement (PIOC) looking to acquire Galadari Cement
• The governemnt issuing Office Memorandum for export of sugar with a subsidy of Rs10.7/kg
• Foreign institutional investors remained net seller during the week with an outflow of USD9.8mn
• Pakistan Oilfields (POL) in its material notification announced its recent discovery at Ikhlas Block that is expected to have an annualized positive EPS impact of PKR12/sh
• Growing consumption of retail fuels led to 3%YoY rise in sales of POL products to 2.16mn tons in Sep’17
• The ex Prime Minister appeared before the Accountability Court on October 02, 2017, when the Court issued non-bail able arrest warrants for his sons and son-in-law
• The government has notified increase in petroleum products'' prices effective October 1. In a monthly review
• Government assured the fertiliser industry of disbursing nine billion rupees in lieu of pending subsidy claims within a week

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 86.00
Target Price: PKR 132

Attock Cement (ACPL) – BUY 
Current Price: PKR 199.48
Target Price: PKR 315

Adamjee Insurance (AICL) – BUY 
Current Price: PKR 61.23
Target Price: PKR 90

Askari Bank (AKBL) – BUY 
Current Price: PKR 18.90
Target Price: PKR 25

Attock Petroleum (APL) – BUY 
Current Price: PKR 617.50
Target Price: PKR 796

Aisha Steels Limited (ASL) – BUY 
Current Price: PKR 17.8
Target Price: PKR 30

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 93.1
Target Price: PKR 156

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 41.07 
Target Price: PKR 50

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 56.50
Target Price: PKR 72

Cherat Cement Company Limited (CHCC) – BUY 
Current Price: PKR 109.47
Target Price: PKR 251

Dera Ghazi Khan Cement (DGKC) – BUY 
Current Price: PKR 146.65
Target Price: PKR 262.0

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 62.02
Target Price: PKR 83

ENGRO Foods Limited (EFOODS) – BUY 
Current Price: PKR 87.96
Target Price: PKR 138.66

ENGRO Corporations (ENGRO) – BUY 
Current Price: PKR 292.65
Target Price: PKR 400

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 31.48
Target Price: PKR 45.1

Fauji Cement Company Limited (FCCL) – BUY 
Current Price: PKR 30.96
Target Price: PKR 54

Fauji Fert Bin Qasim (FFBL) – BUY 
Current Price: PKR 36.27
Target Price: PKR 67

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 81.26 
Target Price: PKR 122.0

Gharibwal Cement Ltd. (GWLC) – BUY 
Current Price: PKR 31.46
Target Price: PKR 100.00

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 173.51 
Target Price: PKR 253.08

Habib Metro (HMB) – BUY 
Current Price: PKR 33.00 
Target Price: PKR 52

Hascol Petroleum (HASCOL) – BUY 
Current Price: PKR 267.52
Target Price: PKR 428

Honda Atlas Cars (Pak) Ltd. (HCAR) – BUY 
Current Price: PKR 518.5
Target Price: PKR 912.2

Habib Metro Bank (HMB) – BUY 
Current Price: PKR 33.45
Target Price: PKR 52

Hi-Tech Lubricants (HTL) – BUY 
Current Price: PKR 90.23
Target Price: PKR 133

HUBCO (HUBC) – BUY 
Current Price: PKR 109.99
Target Price: PKR 144

Indus Motors (INDU) – BUY 
Current Price: PKR 1,670.02 
Target Price: PKR 2,214.3

Inter Steel Limited (ISL) – BUY 
Current Price: PKR 113.1
Target Price: PKR 178

Kohat Cement (KOHC) – BUY
Current Price: PKR 141.71
Target Price: PKR 353

Lalpir Power (LPL) – BUY 
Current Price: PKR 21.12
Target Price: PKR 32

Lucky Cement (LUCK) – BUY 
Current Price: PKR 528.31
Target Price: PKR 1,159.0

MARI Petroleum (MARI) – BUY 
Current Price: PKR 1,542.1
Target Price: PKR 2,051

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR 206.27
Target Price: PKR 250

Meezan Bank (MEBL) – BUY 
Current Price: PKR 70.00
Target Price: PKR 91

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 77.2
Target Price: PKR 179.0

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 49.51
Target Price: PKR 74

National Foods (NATF) – BUY 
Current Price: PKR 311.00
Target Price: PKR 473

Nishat Chunian (NCL) – BUY 
Current Price: PKR 60.30
Target Price: PKR 74

Nishat Chunian Power (NCPL) – BUY 
Current Price: PKR 39.27
Target Price: PKR 59

Nishat Mills (NML) – BUY 
Current Price: PKR 146.13
Target Price: PKR 186

Nishat Power (NPL) – BUY 
Current Price: PKR 45.45
Target Price: PKR 81

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 145.89 
Target Price: PKR 200

Pak Elektron Ltd. (PAEL) – BUY 
Current Price: PKR 74.2
Target Price: PKR 126.1

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 81.35
Target Price: PKR 161

Pakgen Power Limited (PKGP) – BUY 
Current Price: PKR 21.75 
Target Price: PKR 34

Power Cement (POWER) – BUY 
Current Price: PKR 10.28
Target Price: PKR 16

Pakistan Petroleum Limited (PPL) – BUY 
Current Price: PKR 173.1
Target Price: PKR 218

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 476.43
Target Price: PKR 800.7

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 439.59
Target Price: PKR 490

Pakistan Telecommunication (PTC) – BUY 
Current Price: PKR 14.00
Target Price: PKR 19.00

Tariq Glass (TGL) – BUY 
Current Price: PKR 102.15
Target Price: PKR 128

United Bank Limited (UBL) – BUY 
Current Price: PKR 189.98 
Target Price: PKR 294

Thank you very much for reading this article.

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Written by: Rana Khuram