Pakistan Stock Exchange (PSX) Weekly Analysis 5 Feb, 2018

BUY recommendations are:  ACPL, APL, ASTL, BAFL, BAHL, DGKC, FATIMA, FCCL, GWLC, HBL, HCAR, HUBC, INDU, KOHC, LPL, LUCK, MCB, MLCF, NBP, NCL, NCPL, OGDC, PIOC, PPL, PSMC, PSO, and UBL.

Top gainers of last week were: MUREB, GLAXO, PICT, TRG, ATLH, AKBL, DAWH, GHGL, ARM and MARI.

Top losers of last week were: MLCF, UBL, FML, PMPK, PAKT, CSAP, HUMNL, PIBTL, LUCK and SSGC.

Top Volume Leaders of last week: BOP, TRG, PAEL, KEL, FCCL, SSGC, ISL, PIBTL, DGKC, and HBL.

The Pakistan Stock Exchange (PSX) market index witnessed volatility in the outgoing week. Discount rate hike by SBP, oil prices sustaining ~US$65/bbl (near 3‐Year high) and decent earnings season were overshadowed by foreign selling throughout the week. KSE-100 index has closed on 44,301 by losing 250 points or -0.56% while KSE-30 index has closed on 22,152 by losing 282 or -1.26 %.

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

• Following the announcement by the State Bank of an interest hike of 25bps, the banking sector showed renewed interest
• The only results released in the fertilizer sector were by FFC, with their EPS decreasing from PKR9.26 to PKR8.42 in CY17
• The government has decided in principle to pay about Rs500 million to two leading oil mar-keting companies – Pakistan State Oil and Shell Pakistan – to clear compen-sation claims which had been pending for almost three years
• Byco Petroleum inducted new oil tankers in its fleet to transport petroleum products from its refinery in Mouza Kund across Pakistan
• Pakistan Tehreek-e-Insaf (PTI) leader Jahangir Khan Tareen’s JDW Group intends to set up a 50 MWp solar PV power project in Sindh aiming to sell the generated electric power to K-Electric
• Prices of major oil products are set to pass beyond three-year high, with diesel crossing Rs100 per litre mark – highest since November 2014 – amid rising international prices and falling rupee value
• Pakistan’s annual inflation climbed to 4.4 per cent in January from 3.7pc in the same month last year mainly due to hike in petroleum prices
• Foreigners were net sellers of US$12.6mn worth of shares during the week vs. buying of US$12.4mn during the last week. On the local front, Banks were net sellers of US$12.1mn whereas Individuals were net buyers of US$6.3mn
• The Islamabad High Court issued notices to the ministries of petroleum, finance and Oil and Gas Regulatory Authority (OGRA) on a petition filed against the recent increase in fuel prices. Justice Shaukat Aziz Siddiqui directed the respondents to file their responses in a week, warning that a decision will be given without taking their point of view if a reply is not received. The court then adjourned proceedings on the case until February 12 
• Foreign exchange reserves fall by USD299mn to USD19.4bn
• CPI inflation clocks in at 4.4% YoY in Jan’18 First half FDI down 3%
• FBR collects over PKR2trn in seven months
• The Election Commission of Pakistan announced that polling for the Senate election will be held on Mar 03'18, as the term for 52 incumbent legislators concludes

Following are few BUY recommendations:

Attock Cement (ACPL) – BUY 
Current Price: PKR 193   
Target Price: PKR 261

Attock Petroleum (APL) – BUY 
Current Price: PKR 587.51         
Target Price: PKR 745.14

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 96.44         
Target Price: PKR 128

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 47.9       
Target Price: PKR 50

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 66.8   
Target Price: PKR 72

Dera Ghazi Khan Cement (DGKC) – BUY 
Current Price: PKR 162.02
Target Price: PKR 194

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 32.18
Target Price: PKR 45.1

Fauji Cement Company Limited (FCCL) – BUY 
Current Price: PKR 28.60   
Target Price: PKR 36

Gharibwal Cement Ltd (GWLC) – BUY 
Current Price: PKR 27.58
Target Price: PKR 58

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 197.48         
Target Price: PKR 248

Honda Cars (HCAR) – BUY 
Current Price: PKR 526.1   
Target Price: PKR 707

HUBCO (HUBC) – BUY 
Current Price: PKR 97.99         
Target Price: PKR 138.7

Indus Motors (INDU) – BUY 
Current Price: PKR 1,818.12   
Target Price: PKR 2,069

Kohat Cement (KOHC) – BUY
Current Price: PKR 162.5
Target Price: PKR 248

Lalpir Power (LPL) – BUY 
Current Price: PKR 22         
Target Price: PKR 30

Lucky Cement (LUCK) – BUY 
Current Price: PKR 632.76         
Target Price: PKR 827

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR 226 
Target Price: PKR 252

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 79.61       
Target Price: PKR 107

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 49.44
Target Price: PKR 74

Nishat Chunian (NCL) – BUY 
Current Price: PKR 54.79
Target Price: PKR 69

Nishat Chunian Power (NCPL) – BUY 
Current Price: PKR 30     
Target Price: PKR 50

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 167.5         
Target Price: PKR 193

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 75.52         
Target Price: PKR 109

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 208.8
Target Price: PKR 239

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 519.76
Target Price: PKR 620

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 320.47         
Target Price: PKR 392

United Bank Limited (UBL) – BUY 
Current Price: PKR 190.17   
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