Pakistan Stock Exchange (PSX) Weekly Analysis 16 Dec, 2017

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

Top gainers of last week were: COLG, NCPL, SHFA, OLPL, IBFL, ENGRO, PPL, NCL, NESTLE and PAKT.

Top losers of last week were: ATRL, JSCL, TRG, INIL, ISL, JLICL, HASCOL, SSGC, NRL and PAEL.

Top Volume Leaders of last week: TRG, KEL, PAEL, SNGP, BAFL, SSGC, HBL, ENGRO, ISL, and BOP.

The Pakistan Stock Exchange (PSX) market index declined by 434pts WoW (~1.1%) to 38,646 pts owing to 3.6%WoW slide in PKR/USD and deadlock on Delimitation Act which could delay general elections. KSE-100 index has closed on 38,646 by losing -434 points or -1.11%. While KSE-30 index has closed on 19,280 by decreasing -211 points or -1.08 %.

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

  • Amidst the inevitable Rupee devaluation against the US dollar and continued political uncertainty arising from judicial developments, the KSE-100 index weakened
  • Rupee fell another 1.4 percent on Monday, slumping for a second day, after the central bank apparently allowed market-based adjustments in the currency and analysts believe it may slide even further in the near-term to help arrest the country’s falling exporters. Rupee closed at 108.41 to a dollar, which was far its previous low of 107 in the interbank market. In morning, the rupee even touched 109.25/dollar. Traders and currency analysts said rupee tumbled in an ‘apparent’ devaluation by the central bank
  • PKR depreciation caused Cements (-6.0%WoW), Engineering (-9.0%WoW), OMCs (-2.8%WoW), Autos (-2.7%WoW), and Refineries (-8.8%WoW) valuations to decline contributing -214/-83/-53/-52/-40pts to index whereas E&Ps (+1.9%WoW) drove index up by 117pts
  • Market sentiment cratered under a ‘controlled’ devaluation exercise by the SBP which saw the PkR lose 4.6%WoW against the Greenback, leading participants to raise concerns over the knock-on effects on the import bill, inflation and consumer confidence
  • Supreme Court ruling in favor of PTI Chairman Imran Khan in a disqualification case, while disqualifying PTI General Secretary Jahangir Khan Tareen
  • Supreme Court dismissing NAB’s appeal to reopen the Hudaibiya Paper Mills case
  • NA speaker hinting towards early dissolution of assemblies, while later refuted by PM Shahid Khaqan Abbasi
  • The market is expected to remain lacklustre in the upcoming sessions, with political uncertainty reaching its peak
  • Long steel manufacturers raising re-bars prices by ~PkR5000/ton
  • Trading activity picked up during the week where average daily traded value rose by 14% to USD61mn in spite of 4%WoW dip in average daily traded volumes to 135mn shares
  • Automobile Sales for the month of Nov-17 fell 9% sequentially but increased 4% YoY as the year-end effect kicked in. However the overall 5MFY18 performance remained strong, up 22% YoY
  • Individuals/Foreigners remained major net sellers as they offloaded shares worth USD17.8mn/USD8.9mn during the week. Banks/Companies/Mutual Funds absorbed the major selling with net buying of USD11.3mn/USD10.7mn/USD6.5mn
  • The share purchase agreement (SPA) signed between Kot Addu Power Company Ltd (Kapco) and Dawood Hercules Corporation and ‘other shareholders’ has fallen apart, a stock exchange filing said on Friday. Kapco had signed the SPA for the acquisition of 201 million shares (approximately 17.37pc) in Hub Power Company (Hubco)
  • Jet fuel shortage on the horizon in Pakistan
  • The merchandise trade deficit swelled nearly 29 per cent to $15.03 billion in the first five months of this fiscal year, the Pakistan Bureau of Statistics said on Monday
  • Engro Elengy Terminal Private Limited (EETPL) signed an LNG Supply Agreement (LSA) with Sui Southern Gas Company (SSGC) for provision of additional 200 mmscfd gas
  • Auto-part maker Loads Ltd will begin local manufacturing of alloy wheels
  • Nishat Mills (NML) notified the bourse that Hyundai Nishat Motors (HNML) has planned ground breaking for auto manufacturing project on Dec 20, 2017, while its new spinning facility with 49.5k spindles (22k relocated) will commence commercial production on the same date
  • A major development on the macroeconomic front was seen during the week as the State Bank of Pakistan (SBP) let the Rupee fall by 6% against the Greenback, reportedly after partially agreeing to IMF’s demands of over 15% demands 
  • Approval of US$700mn allocation under Coalition Support Fund (CSF) program
  • Cement manufacturers coming under the spotlight on usage of groundwater in the Potohar


Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 78.51   
Target Price: PKR 90

Attock Cement (ACPL) – BUY 
Current Price: PKR 150.1
Target Price: PKR 261

Adamjee Insurance (AICL) – BUY 
Current Price: PKR 48.79
Target Price: PKR 83

Attock Petroleum (APL) – BUY 
Current Price: PKR 509.23   
Target Price: PKR 729

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 84.65   
Target Price: PKR 128

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 39.32   
Target Price: PKR 50

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 54.6
Target Price: PKR 72

Cherat Cement Company Limited (CHCC) – BUY 
Current Price: PKR 90.90   
Target Price: PKR 140

Dera Ghazi Khan Cement (DGKC) – BUY 
Current Price: PKR 123.17   
Target Price: PKR 194

ENGRO Corporations (ENGRO) – BUY 
Current Price: PKR 268.66
Target Price: PKR 359

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 28.25
Target Price: PKR 45.1

Fauji Cement Company Limited (FCCL) – BUY 
Current Price: PKR 22.81
Target Price: PKR 36

Fauji Fert Bin Qasim (FFBL) – BUY 
Current Price: PKR 33.15
Target Price: PKR 50

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 75.46   
Target Price: PKR 87

General Tyre & Rubber (GTYR) – BUY 
Current Price: PKR 180.13
Target Price: PKR 239

Gharibwal Cement Ltd. (GWLC) – BUY 
Current Price: PKR 22.10
Target Price: PKR 58

Hascol Petroleum (HASCOL) – BUY 
Current Price: PKR 222.9   
Target Price: PKR 325.95

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 158.63   
Target Price: PKR 248

Honda Cars (HCAR) – BUY 
Current Price: PKR 508
Target Price: PKR 707

Habib Metro Bank (HMB) – BUY 
Current Price: PKR 33
Target Price: PKR 50

Hi-Tech Lubricants (HTL) – BUY 
Current Price: PKR 65.70
Target Price: PKR 116

HUBCO (HUBC) – BUY 
Current Price: PKR 93.76   
Target Price: PKR 138.7

Indus Motors (INDU) – BUY 
Current Price: PKR 1,680
Target Price: PKR 2,069

Kot Addu Power Company (KAPCO) – BUY
Current Price: PKR 53.93     
Target Price: PKR 85.00

Kohat Cement (KOHC) – BUY
Current Price: PKR 123.17 
Target Price: PKR 248

Lalpir Power (LPL) – BUY 
Current Price: PKR 21.72
Target Price: PKR 30

Lucky Cement (LUCK) – BUY 
Current Price: PKR 454.81   
Target Price: PKR 785

MARI Petroleum (MARI) – BUY 
Current Price: PKR 1,462.2
Target Price: PKR 2,177

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR 196.64 
Target Price: PKR 230

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 66.14 
Target Price: PKR 107

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 43.57
Target Price: PKR 74

National Foods (NATF) – BUY 
Current Price: PKR 313
Target Price: PKR 395

Nishat Chunian (NCL) – BUY 
Current Price: PKR 46.29
Target Price: PKR 69

Nishat Chunian Power (NCPL) – BUY 
Current Price: PKR 29.6
Target Price: PKR 33

Nishat Mills (NML) – BUY 
Current Price: PKR 142.13
Target Price: PKR 169

Nishat Power (NPL) – BUY 
Current Price: PKR 30.0
Target Price: PKR 35

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 156.70   
Target Price: PKR 175

Pak Elecktron (PAEL) – BUY 
Current Price: PKR 45.4   
Target Price: PKR 88

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 53.49   
Target Price: PKR 109

Pakgen Power Limited (PKGP) – BUY 
Current Price: PKR 21.85
Target Price: PKR 34

Pakistan Oilfields (POL) – BUY 
Current Price: PKR 615.06
Target Price: PKR 677

Power Cement (POWER) – BUY 
Current Price: PKR 7.88
Target Price: PKR 16

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 201.56
Target Price: PKR 239

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 472.35
Target Price: PKR 620

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 277.77   
Target Price: PKR 392

Tariq Glass (TGL) – BUY 
Current Price: PKR 90.2 
Target Price: PKR 122

United Bank Limited (UBL) – BUY 
Current Price: PKR 164.99
Target Price: PKR 238

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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