Pakistan Stock Exchange (PSX) Weekly Analysis 24 Feb, 2018

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

Top gainers of last week were: NATF, BATA, POL, GADT, BWCL, SHFA, POML, NESTLE, KAPCO and LUCK.

Top losers of last week were: MUREB, PIOC, ARM, MLCF, FCCL, PIBTL, NCPL, BNWM, ABOT and PAEL.

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

The Pakistan Stock Exchange (PSX) market index continued to lose points during the outgoing week, after uncertainty surrounded the FATF’s watch list and their week-long meeting over Pakistan’s status. KSE-100 index has closed on 43,267 by losing -360 points or -0.8 % while KSE-30 index has closed on 21,851 by losing -45 or -0.21 %.

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

  • Amid Supreme Court’s decision of disqualifying former PM Nawaz Sharif as a head of ruling party and rumours of placing Pakistan in terrorism financing watch-list, stock market remained volatile throughout the week
  • The average volume traded on the all-share index was recorded at 184mn shares, while 70mn were traded on the main board
  • Country’s foreign exchange reserves declined to USD18.83bn, down by USD139mn due external debt repayments
  • Current account gap widens 48%
  • Ghandhara Nissan likely to resume Datsun car production. Government allowed Ghandhara Nissan to go ahead with their brownfield expansion to import auto parts at lower rates for a period of three years
  • Foreign investors remained net seller, exhibiting a net outflow of USD2.7mn
  • Textile exports exhibited a 7%YoY growth in 7MFY18 where the value added segment rose by 20%YoY on the back of Textile Package coupled with USD/PKR depreciation
  • ASTL’s expansion of rebar at SITE, company has scaled down its expansion target from 145k tons to 95k tons taking the total capacity at SITE to 275k tons
  • After a three month ban the government ordered PSO to arrange import of 180,000 tons of furnace oil to replenish declining inventories available with the power sector
  • Fertilizer numbers released during the outgoing week were positive
  • The government on Tuesday assured the parliament that the management of Pakistan International Airlines (PIA) will remain with the government, while 49 per cent shares will be sold by April 15, as stipulated under the PIAC Conversion Act of 2016 approved by the parliament
  • To add insult to the injury, World Bank in its press release announced that it will suspend participation of PAEL and its affiliates for 33 months for collusive practices during bidding on contracts. As a result, PAEL hit lower limit. 
  • General Tyre and Rubber Co. of Pakistan (GTYR) announced earnings of Rs174mn (EPS Rs2.9), down 47% YoY in 2QFY18. While revenues were up 21% YoY to Rs3bn, contraction in gross margins, down 10ppts to 17% led to earnings decline
  • Thal Limited (THALL) reported consolidated earnings of Rs756mn (EPS Rs9.3) in 2QFY18, down 70% YoY. While revenues grew by 7% to Rs4 6bn decline in Rs4.6bn, other income, down 80% to Rs567mn significantly impacted bottom‐line
  • Kot Addu Power Company (KAPCO) announced its 2QFY18 result where the company reported revenues of Rs18.4bn, up 21% YoY. While gross margins remained almost flat at ~17% during the outgoing quarter, significant increase in financial charges, up 47% YoY to Rs1.5bn impacted bottom‐line. Despite this, earnings were up ~19% to Rs2.2bn (EPS Rs2.5)
  • Pakistan International Bulk Terminal (PIBTL) reported revenues of Rs400mn in 2QFY18 while loss for the period clocked‐in at Rs1.1bn (LPS 0.8) mainly due to higher cost of services. To note, the company started commercial operations in mid 2017

Following are few BUY recommendations:

Attock Cement (ACPL) – BUY 
Current Price: PKR 189       
Target Price: PKR 261

Attock Petroleum (APL) – BUY 
Current Price: PKR 553.5           
Target Price: PKR 745.14

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 92.4           
Target Price: PKR 128

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 48       
Target Price: PKR 55

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 69       
Target Price: PKR 75

Cherat Cement (CHCC) – BUY 
Current Price: PKR 123.1   
Target Price: PKR 153

Dera Ghazi Khan Cement (DGKC) – BUY 
Current Price: PKR 138.8 
Target Price: PKR 194

ENGRO Corporation (ENGRO) – BUY 
Current Price: PKR 301.16 
Target Price: PKR 348.84

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 67.62   
Target Price: PKR 79.94

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 31.04
Target Price: PKR 45.1

Fauji Cement Company Limited (FCCL) – BUY 
Current Price: PKR 24.8       
Target Price: PKR 36

Fauji Fert. Bin Qasim Limited (FFBL) – BUY 
Current Price: PKR 36.52       
Target Price: PKR 48.10

Gharibwal Cement Ltd (GWLC) – BUY 
Current Price: PKR 25.53
Target Price: PKR 58

Hascol Petroleum (HASCOL) – BUY 
Current Price: PKR 272.28
Target Price: PKR 317.69

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 210.5           
Target Price: PKR 248

Honda Cars (HCAR) – BUY 
Current Price: PKR 492.3       
Target Price: PKR 707

HUBCO (HUBC) – BUY 
Current Price: PKR 97.2           
Target Price: PKR 138.7

Indus Motors (INDU) – BUY 
Current Price: PKR 1,698.1     
Target Price: PKR 2,069

Kohat Cement (KOHC) – BUY
Current Price: PKR 143   
Target Price: PKR 248

Lalpir Power (LPL) – BUY 
Current Price: PKR 21.6           
Target Price: PKR 30

Lucky Cement (LUCK) – BUY 
Current Price: PKR 600.7             
Target Price: PKR 827

MARI Petroleum (MARI) – BUY 
Current Price: PKR 1,562.6             
Target Price: PKR 2040 

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR 218     
Target Price: PKR 252

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 65.1           
Target Price: PKR 107

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 47.64
Target Price: PKR 74

Nishat Chunian (NCL) – BUY 
Current Price: PKR 49.53
Target Price: PKR 69

Nishat Chunian Power (NCPL) – BUY 
Current Price: PKR 31.22
Target Price: PKR 50

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 164.3           
Target Price: PKR 193

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 63.8           
Target Price: PKR 109

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 201.1   
Target Price: PKR 239

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 478.91
Target Price: PKR 620

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 293.5           
Target Price: PKR 392

United Bank Limited (UBL) – BUY 
Current Price: PKR 196.9     
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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