Pakistan Stock Exchange (PSX) Weekly Analysis 3 Dec, 2017

BUY recommendations are:  ABL, ACPL, AICL, APL, ASTL, BAFL, BAHL, CHCC, DGKC, ENGRO, FATIMA, FCCL, FFBL, FFC, GWLC, HBL, HASCOL, HMB, HTL, HUBC, INDU, KOHC, LPL, LUCK, MCB, MLCF, NBP, NATF, NCL, NCPL, NML, NPL, OGDC, PIOC, PKGP, POL, POWER, PPL, PSMC, PSO, UBL.

Top gainers of last week were: PAKT, TRG, IBFL, GADT, PMPK, KEL, UBL, SCBPL, THALL, and NESTLE.

Top losers of last week were: CJPL, SNGP, NPL, PSMC, KOHC, ATRL, NRL, AICL, POML and PGF.

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

The Pakistan Stock Exchange (PSX) market index registered only a marginal decline of 0.6% WoW to close at 40,010, thanks to a timely resolution between the government and religious parties. KSE-100 index has closed on 40,010 by losing 238 points or -0.59 %. While KSE-30 index has closed on 20,109 by decreasing 221 points or -1.09 %.

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


  • The Central Bank kept the policy rate intact at 5.75% over the weekend, where it believes economic activity remains strong with CPI inflation expected to remain well below the annual inflation target
  • Despite a peaceful end to the 21 day long sit-in that resulted in the Law Minister’s resignation, the market continued to reel under pressure, breaching 40k psychological bearer for the third time since Oct’17 but managed to close at 40,010pts 
  • Investors chose to remain on the sidelines ahead of the MSCI rebalancing on Nov 30’17 with foreigners offloading US$39.54mn worth of equities during the week vs. net outflow of US$6.28mn in the previous week
  • Foreigners sold US$39.5mn during the week (vs. selling of US$6.3mn last week). On the local front, Individuals & Insurance sector were net buyers of US$8.6mn and US$8.5mn, respectively. Selling was concentrated in Fertilizer (US$29.5mn) & Banks (US$5.5mn) whereas buying was seen in OMC sector to the tune of US$2.4mn
  • GoP raising US$2.5bn through issuance of 5-yr sukuk and 10-yr euro bond, where cut off yields were 5.625% and 6.875%, respectively
  • Supreme Court started hearing NAB’s appeal regarding re-opening of the Hudaibiya Paper Mills case
  • Fertilizer off-take remaining strong as Rabi season kicked in, with Oct’17 urea/DAP clocking in at 375k/387k tons (+4%YoY/-19%YoY)
  • ECC approving additional sugar export quota of 1mn tons with a subsidy of PkR10.70/kg
  • OGRA proposing a revised tariff for gas utilities where it seeks to apply the WACC based return on T&D networks (at 10.76/11.31% of their net regulated assets) instead of fixed ROA based returns previously
  • KEL’s tariff review hearing by NEPRA scheduled on Dec 05’17
  • Ghandhara Nissan Ltd (GNL) has closed down the production of UD trucks following the discontinuation of the said model by UD Trucks Corporation, Japan a few months ago
  • Singer Pakistan Ltd will merge with Cool Indus-tries Ltd, which produces home appliances under the brand name of Waves, a stock notice said on Monday. The name of the post-merger company will be Waves Singer Pakistan Ltd. Cool Industries will merge with and into Singer against which 94 million shares will be issued to the share-holders of Cool Industries. It will be based on a swap ratio of 1.79 shares for each share of Cool Industries
  • Sui Northern Gas Limited (SNGPL) has reportedly expressed its inability to supply 150 MMCFD system gas to Punjab-based textile industry for at least two and half months starting from December 1, 2017
  • Pakistan’s debt from foreign banks clocked in at $1.022 billion in the first four months of the current fiscal 2017/18, almost half of total foreign loans and much above the annual target
  • The sentiments progressively improved during the week as the Prime Minister agreed to utilize local furnace oil to run power plants, giving some respite to Oil Refineries, which had come under pressure during the past week due to sudden shift in government’s policy of using RLNG in place of furnace oil 
  • Pakistan Government sees bids by January 2, 2018 for financial advisers consortium to privatize Mari Petroleum (MARI), Privatization Commission said in newspaper advertisement. Proposal seeks consortium of not more than 3 members including global coordinator, consultant and book runner as Govt. seeks to divest up to 18.39% shareholding in MARI 
  • Treet Corporation (TREET) informed that trial production of battery project has started & commercial production soon after trial
  • Exide Pakistan (EXIDE) reported 1HMY18 EPS of Rs12.1 down 79% YoY due to 10% sales decline & 12ppts margin contraction
  • Century Paper and Board Mills (CEPB) has finalized expansion plan with Posco Daewoo, Korea as EPC contractor for new Coated Board plant with capacity of 130k tons per annum (As per news reports they have signed an agreement worth Rs13bn)

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 81.35 
Target Price: PKR 90

Attock Cement (ACPL) – BUY 
Current Price: PKR 175.53 
Target Price: PKR 261

Adamjee Insurance (AICL) – BUY 
Current Price: PKR 51.39
Target Price: PKR 83

Attock Petroleum (APL) – BUY 
Current Price: PKR 580.00 
Target Price: PKR 729

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 94.01 
Target Price: PKR 128

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 40.35 
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 93.56 
Target Price: PKR 140

Dera Ghazi Khan Cement (DGKC) – BUY 
Current Price: PKR 134.38 
Target Price: PKR 194

ENGRO Corporations (ENGRO) – BUY 
Current Price: PKR 262.32
Target Price: PKR 359

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 30.14
Target Price: PKR 45.1

Fauji Cement Company Limited (FCCL) – BUY 
Current Price: PKR 27.04
Target Price: PKR 36

Fauji Fert Bin Qasim (FFBL) – BUY 
Current Price: PKR 35.97
Target Price: PKR 50

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 81.07 
Target Price: PKR 87

Gharibwal Cement Ltd. (GWLC) – BUY 
Current Price: PKR 23.84
Target Price: PKR 58

Hascol Petroleum (HASCOL) – BUY 
Current Price: PKR 264.99     
Target Price: PKR 325.95

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 163 
Target Price: PKR 248

Habib Metro Bank (HMB) – BUY 
Current Price: PKR 33.18
Target Price: PKR 50

Hi-Tech Lubricants (HTL) – BUY 
Current Price: PKR 74.85
Target Price: PKR 133

HUBCO (HUBC) – BUY 
Current Price: PKR 97.65 
Target Price: PKR 138.7

Indus Motors (INDU) – BUY 
Current Price: PKR 1,741
Target Price: PKR 2,069

Kot Addu Power Company (KAPCO) – BUY
Current Price: PKR 59.27   
Target Price: PKR 85.00

Kohat Cement (KOHC) – BUY
Current Price: PKR 130.45 
Target Price: PKR 248

Lalpir Power (LPL) – BUY 
Current Price: PKR 22.17
Target Price: PKR 30

Lucky Cement (LUCK) – BUY 
Current Price: PKR 494.65 
Target Price: PKR 785

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR 204.31 
Target Price: PKR 230

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 71.12 
Target Price: PKR 107

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 44.84
Target Price: PKR 74

National Foods (NATF) – BUY 
Current Price: PKR 304.17
Target Price: PKR 395

Nishat Chunian (NCL) – BUY 
Current Price: PKR 45.46
Target Price: PKR 53

Nishat Chunian Power (NCPL) – BUY 
Current Price: PKR 29.77 
Target Price: PKR 47

Nishat Mills (NML) – BUY 
Current Price: PKR 141.23
Target Price: PKR 169

Nishat Power (NPL) – BUY 
Current Price: PKR 31.61 
Target Price: PKR 46.9

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 155.49 
Target Price: PKR 175

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 61.15 
Target Price: PKR 109

Pakgen Power Limited (PKGP) – BUY 
Current Price: PKR 23.04
Target Price: PKR 34

Pakistan Oilfields (POL) – BUY 
Current Price: PKR 600.36
Target Price: PKR 683

Power Cement (POWER) – BUY 
Current Price: PKR 8.63
Target Price: PKR 16

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 189.09
Target Price: PKR 239

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 480.40
Target Price: PKR 620

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 309.53 
Target Price: PKR 392

United Bank Limited (UBL) – BUY 
Current Price: PKR 175.53
Target Price: PKR 250

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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