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

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

Top gainers of last week were: FML, BNWM, PAKT, PICT, DAWH, JLICL, GLAXO, EFOODS, PGF, and IGIIL.

Top losers of last week were: PAEL, CJPL, NCL, INIL, KTML, PIOC, HASCOL, POML, BATA and ATRL.

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

The Pakistan Stock Exchange (PSX) market index loses steam as political landscape remains unclear. KSE-100 index has closed on 41,105 by losing 983 points or 2.33 %. While KSE-30 index closed on 20,871 by losing 546 points or 2.55%.

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


  • US Secretary of State during his day‐long visit on Tuesday underscored the importance of Pakistan for United States and emphasized that Pakistan leadership needs to undertake "certain things" for working together as partners towards the same objective
  • Lack of clarity on the political landscape played a major role in deteriorating sentiments even more
  • On the macroeconomic front as well, issues over PKR/US$ parity and likely direction of economic policies also continued to haunt investors
  • Textile exports in Sept-2017 increased to US$1,078mn, up 12% YoY from US$959mn in Sept-2016
  • A consortium of six banks including Citi, DB, IDBC, DIB, Noor bank and SCB was approved to raise US$2bn in Sukook bonds to ease pressures on external front
  • HUBC has secured ~Us$1.5bn in financing for CHPGC, the 1,320MW coal fired power plant, expected to come online by August'19
  • The country's total foreign exchange reserves decreased 0.75%WoW (US$150.8mn) to US$19.9bn during the last week ended Oct 20'17
  • GoP has so far settled PkR2bn out of PkR20bn of subsidy claims of fertiliser manufacturers pending since last year
  • The outgoing week witnessed a number of financial result announcements. The ones that stood out positively were Engro Corporation (ENGRO; on higher payout), Engro Fertilizer (EFERT; on higher payout), National Bank of Pakistan (NBP; on provisioning reversals and capital gains), Pakistan State Oil (PSO; on higher penal markup income), Kohat Cement (KOHC; on better margins and offtakes), Maple Leaf Cement (MLCF; on better margins and offtakes) and Pakistan Petroleum (PPL; on upward revision in Sui wellhead gas pricing and retrospective impact of Tal Block’s wellhead gas pricing). On the flip side both Nishat Chunian Power (NCPL) and Nishat Power (NPL) disappointed as they skipped dividends. Other disappointments included Habib Metropolitan Bank (HMB; on booking of capital losses) and Pak Elektron (PAEL; on more than expected operating and distribution costs)
  • Dawood Hercules (DAWH) announced that it concluded share price agreement with Kot Addu Power (KAPCO) for its stake sale in Hub Power (HUBC) at PKR109.86/share. This results in value accretion for KAPCO where our EPS and Target Price will be revised up while DPS estimates will be revised down. DAWH will be booking one-time gain on sale of PKR10/share while the news should revive sentiments for HUBC as the transaction price is not at a discount to its market price
  • Foreigners remained net sellers as they offloaded shares worth USD5.4mn during the week, while selling from Mutual Funds also spiked up to USD11.3mn. Banks continued to be net buyers in the market with inflows of USD2.5mn while Individuals bought shares worth USD16.4mn, compared to USD5.2mn worth of net selling by them in the preceding week
  • Aisha Steel Mills' plans to expand are all 'laid out'
  • Large-scale manufacturing expands by 8.5pc

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 82.41
Target Price: PKR 132

Attock Cement (ACPL) – BUY 
Current Price: PKR 178.64 
Target Price: PKR 315

Adamjee Insurance (AICL) – BUY 
Current Price: PKR 55.78
Target Price: PKR 90

Askari Bank (AKBL) – BUY 
Current Price: PKR 19.62
Target Price: PKR 25

Attock Petroleum (APL) – BUY 
Current Price: PKR 610.00 
Target Price: PKR 796

Aisha Steels Limited (ASL) – BUY 
Current Price: PKR 19.0
Target Price: PKR 30

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 88.80
Target Price: PKR 156

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 41.10   
Target Price: PKR 50

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 57.95
Target Price: PKR 72

Cherat Cement Company Limited (CHCC) – BUY 
Current Price: PKR 110.50 
Target Price: PKR 251

Dera Ghazi Khan Cement (DGKC) – BUY 
Current Price: PKR 142.94 
Target Price: PKR 262.0

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 65.52
Target Price: PKR 83

ENGRO Corporations (ENGRO) – BUY 
Current Price: PKR 287.57
Target Price: PKR 400

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 29.85
Target Price: PKR 45.1

Fauji Cement Company Limited (FCCL) – BUY 
Current Price: PKR 29.97 
Target Price: PKR 54

Fauji Fert Bin Qasim (FFBL) – BUY 
Current Price: PKR 34.62
Target Price: PKR 67

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 84.0
Target Price: PKR 122.0

Gharibwal Cement Ltd. (GWLC) – BUY 
Current Price: PKR 26.83
Target Price: PKR 100.00

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 168.76   
Target Price: PKR 253.08

Hascol Petroleum (HASCOL) – BUY 
Current Price: PKR 268.83 
Target Price: PKR 428

Honda Atlas Cars (Pak) Ltd. (HCAR) – BUY 
Current Price: PKR 536.7
Target Price: PKR 912.2

Habib Metro Bank (HMB) – BUY 
Current Price: PKR 32.80
Target Price: PKR 52

Hi-Tech Lubricants (HTL) – BUY 
Current Price: PKR 88.86
Target Price: PKR 133

HUBCO (HUBC) – BUY 
Current Price: PKR 107.84
Target Price: PKR 144

Indus Motors (INDU) – BUY 
Current Price: PKR 1,772.24   
Target Price: PKR 2,214.3

Inter Steel Limited (ISL) – BUY 
Current Price: PKR 108.9
Target Price: PKR 178

Kot Addu Power Company (KAPCO) – BUY
Current Price: PKR 66.92 
Target Price: PKR 85.00

Kohat Cement (KOHC) – BUY
Current Price: PKR 154.83 
Target Price: PKR 353

Lalpir Power (LPL) – BUY 
Current Price: PKR 20.41
Target Price: PKR 32

Lucky Cement (LUCK) – BUY
Current Price: PKR 537.11 
Target Price: PKR 1,159.0

MARI Petroleum (MARI) – BUY 
Current Price: PKR 1,415.8
Target Price: PKR 2,051

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR 207.74
Target Price: PKR 250

Meezan Bank (MEBL) – BUY 
Current Price: PKR 65.66
Target Price: PKR 91

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 70.17 
Target Price: PKR 179.0

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 45.91
Target Price: PKR 74

National Foods (NATF) – BUY 
Current Price: PKR 310.50
Target Price: PKR 473

Nishat Chunian (NCL) – BUY 
Current Price: PKR 54.16
Target Price: PKR 74

Nishat Chunian Power (NCPL) – BUY 
Current Price: PKR 39.04 
Target Price: PKR 59

Nishat Mills (NML) – BUY 
Current Price: PKR 133.70
Target Price: PKR 186

Nishat Power (NPL) – BUY 
Current Price: PKR 42.00 
Target Price: PKR 81

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 147.29   
Target Price: PKR 200

Pak Elektron Ltd. (PAEL) – BUY 
Current Price: PKR 64.3
Target Price: PKR 126.1

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 68.00
Target Price: PKR 161

Pakgen Power Limited (PKGP) – BUY 
Current Price: PKR 19.99
Target Price: PKR 34

Power Cement (POWER) – BUY 
Current Price: PKR 8.86
Target Price: PKR 16

Pakistan Petroleum Limited (PPL) – BUY 
Current Price: PKR 180.4
Target Price: PKR 218

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 511.25
Target Price: PKR 800.7

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 352.60 
Target Price: PKR 490

Pakistan Telecommunication (PTC) – BUY 
Current Price: PKR 13.60
Target Price: PKR 19.00

Tariq Glass (TGL) – BUY 
Current Price: PKR 99.1
Target Price: PKR 128

United Bank Limited (UBL) – BUY 
Current Price: PKR 188.95
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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