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

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

Top gainers of last week were: FFBL, BAHL, TRG, EFOODS, MCB, HMB, AKBL, HBL, NATF and PSO.

Top losers of last week were: PMPK, BATA, IBFL, IGIIL, ATLH, NRL, FABL, ARM, PAEL and PAKT.

Top Volume Leaders of last week: TRG, SSGC, KEL, FCCL, PAEL, BOP, BAFL, FFBL, DGKC, and FABL.

The Pakistan Stock Exchange (PSX) market index advance into positive territory as the much awaited PKR depreciation came to fruition. KSE-100 index has closed on 45,030 by gaining 1,667 points or 3.84% while KSE-30 index has closed on 22,570 by gaining 1,019 or 4.73 %.

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

  • The Rupee touched a low of 118 against the Greenback in the inter-bank market
  • International oil prices crossed past the USD65/bbl mark and came into touching distance with USD70/bbl, the surge was largely explained by a more than expected draw down in US stockpiles
  • Participation in blue chip stocks (Banking and E&Ps) led traded value to grow by 43% while volumes went up by 10%
  • Amongst sectors, Banks turned out to be top performers with contribution of 814 points to the index as market expects 25‐50bps increase in policy rate in upcoming monetary policy which is likely to be scheduled next week. Similarly, E&Ps remained in limelight throughout the week, adding 248 points to the index gain as international crude oil prices increased by ~6% during the week 
  • After seven weeks of consecutive selling, foreigners were net buyers of US$0.2mn worth of shares. On the local front, Mutual Funds were net buyers of US$12.2mn whereas Individuals were net sellers of US$17.2mn
  • Lalpir Power Limited (LPL) announced its financial results for 2017, where company reported EPS of Rs2.56, down by 2% YoY due to decline in gross margins by 2ppts YoY to 10%. Company also declared dividend of Rs1 per share
  • As per the notice sent shared by UBL and BWCL on PSX, Bestway Holding (BHL), shareholder of UBL and BWCL, have carried out a share transfer with a newly incorporated holding company, Bestway Group (BGL). Resultantly, BHL has now become a wholly owned subsidiary of BGL. The reorganization has in no way impacted the majority shareholding of UBL and BWCL, held by BHL
  • Pakgen Power Limited announced its financial results for 2017, where EPS of the company clocked in at Rs3.5, up by 3x YoY on back of increase in margins by 2ppts YoY to 10% and increase in other income to Rs205mn from Rs4mn last year
  • Ghandhara Nissan Limited (GHNL) in its notice to exchange stated that, Ministry of industries and production has awarded “Brownfield investment status” for revival of its existing assembly to manufacture Datsun passenger car
  • Pakistan Peoples Party (PPP) Senator Sherry Rehman has been named leader of the opposition in the Senate as per media reports. The development makes Rehman the first woman in the nation’s history to hold the position
  • Promising demand from textile and cement sectors have improved gross advances (domestic) to private sector by 7.3% QoQ and 16.4% YoY, despite retirements in chemical and pharmaceuticals, according to the latest data released by the State Bank of Pakistan (SBP)
  • Pakistan’s fabric exports to Turkey has been affected after the latter increased duties from 6.4% to 18‐26.4%, giving preferential treatment to Turkish industries and negating the spirit of free trade agreement (FTA) between the two, according to Syed M Ali Nasir, acting president of the Federation of Pakistan Chambers of Commerce & Industry
  • Indus Motor Company (IMC) will shortly increase car prices by five per cent following devaluation of the rupee against dollar and the rising cost of production
  • Unilever has announced an investment of USD 120 million (PKR 11 Billion) in Pakistan acknowledging the country’s high potential for long-term growth
  • With estimates of up to 40 per cent water shortage in April, the upcoming Kharif crops face a serious challenge and may need delayed sowing
  • Textile exports up 7.2% to USD8.8bn in eight months
  • SNGPL to give 1mn fresh connections before polls
  • USD260mn ADB loan to revamp power transmission network


Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 98.50
Target Price: PKR 122

Attock Cement (ACPL) – BUY 
Current Price: PKR 185.6
Target Price: PKR 261

Adamjee Insurance (AICL) – BUY 
Current Price: PKR 52.21
Target Price: PKR 83

Attock Petroleum (APL) – BUY 
Current Price: PKR 575.50 
Target Price: PKR 745.14

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

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 51.50
Target Price: PKR 55

Cherat Cement (CHCC) – BUY 
Current Price: PKR 133.9
Target Price: PKR 153

Dera Ghazi Khan Cement (DGKC) – BUY 
Current Price: PKR 156.26 
Target Price: PKR 194

ENGRO Corporation (ENGRO) – BUY 
Current Price: PKR 305.46
Target Price: PKR 348.84

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 68.16
Target Price: PKR 79.94

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 31.77
Target Price: PKR 45.1

Fauji Cement Company Limited (FCCL) – BUY 
Current Price: PKR 28.27 
Target Price: PKR 36

Fauji Fert. Bin Qasim Limited (FFBL) – BUY 
Current Price: PKR 41.11
Target Price: PKR 48.10

Gharibwal Cement Ltd (GWLC) – BUY 
Current Price: PKR 26.65
Target Price: PKR 58

General Tyre & Rubber (GTYR) – BUY 
Current Price: PKR 192.03
Target Price: PKR 231

Hascol Petroleum (HASCOL) – BUY 
Current Price: PKR 268.82
Target Price: PKR 317.69

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 214.7
Target Price: PKR 248

Honda Cars (HCAR) – BUY 
Current Price: PKR 469.8
Target Price: PKR 707

Habib Metro (HMB) – BUY 
Current Price: PKR 42.16
Target Price: PKR 50

Hi-Tech Lubricant (HTL) – BUY 
Current Price: PKR 101.82
Target Price: PKR 116

HUBCO (HUBC) – BUY 
Current Price: PKR 100.71
Target Price: PKR 138.7

Indus Motors (INDU) – BUY 
Current Price: PKR 1,747.92 
Target Price: PKR 2,069

Kohat Cement (KOHC) – BUY
Current Price: PKR 161.1
Target Price: PKR 248

Lalpir Power (LPL) – BUY 
Current Price: PKR 21
Target Price: PKR 30

Lucky Cement (LUCK) – BUY 
Current Price: PKR 661.53 
Target Price: PKR 827

MARI Petroleum (MARI) – BUY 
Current Price: PKR 1,461
Target Price: PKR 2040 

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR 224       
Target Price: PKR 252

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 71.84
Target Price: PKR 107

National Foods (NATF) – BUY 
Current Price: PKR 317.47
Target Price: PKR 413

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 50.21
Target Price: PKR 74

Nishat Chunian (NCL) – BUY 
Current Price: PKR 48.91
Target Price: PKR 69

Nishat Chunian Power (NCPL) – BUY 
Current Price: PKR 30.44
Target Price: PKR 50

Nishat Power (NPL) – BUY 
Current Price: PKR 33.16
Target Price: PKR 51

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 172.28 
Target Price: PKR 193

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 70.04 
Target Price: PKR 109

Pakgen Power (PKGP) – BUY 
Current Price: PKR 21.35
Target Price: PKR 34

Pakistan Oilfields (POL) – BUY 
Current Price: PKR 638.83
Target Price: PKR 714

Power Cement (POWER) – BUY 
Current Price: PKR 9.48
Target Price: PKR 16

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 213.01 
Target Price: PKR 239

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 484.17
Target Price: PKR 620

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 310.67 
Target Price: PKR 392

United Bank Limited (UBL) – BUY 
Current Price: PKR 198.24         
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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