Pakistan Stock Exchange (PSX) Weekly Analysis 15 April, 2018

BUY recommendations are:  ABL, ACPL, APL, ASTL, 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, POWER, PPL, PSMC, PSO, and UBL.

Top gainers of last week were: FML, JSCL, HCAR, GHGL, JLICL, EPCL, ARPL, ATLH, FFC and DAWH.

Top losers of last week were: COLG, BATA, KAPCO, PKGS, IBFL, SHFA, FCCL, PSEL, BAHL and FABL.

Top Volume Leaders of last week: KEL, EPCL, FCCL, TRG, SSGC, PAEL, UNITY, PITBL, FFC, and JSCL.

The Pakistan Stock Exchange (PSX) market index witnessed dull trading activity during the week. KSE-100 index has closed on 46,072 by losing 566 points or -1.21%. While KSE-30 index has closed on 23,031 by losing 429 points or -1.83 %.

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

  • Following the historic verdict of supreme court today, where apex court announced “life time ban on holding of public office” for former prime minister Nawaz Sharif and PTI leader Jahangir Tareen, led index to fall by 0.6% in today’s trading session, taking full week index decline to 1.2%
  • Apart from profit taking by investors, uncertainties surrounding upcoming federal budget amidst resistance from opposition parties and hearings of key political cases in the Supreme Court hurt investor sentiments during the week
  • Banking stocks remained top laggards during the outgoing week withholding 372pts points from index, over concerns on the implementation of Amnesty and its effectiveness in materialization of foreign inflows
  • Pakistan’s foreign exchange reserves fell to USD17.6bn during the week ended April 6 from USD17.8bn a week ago
  • Foreigners remained net buyers during the week amounting to US$17.5mn vs. net buying of US$3.6mn last week. On the other hand, amongst local investors Individuals remained net buyers of US$11.9mn whereas Banks were net sellers of US$9mn
  • Foreign exchange reserves held by the State Bank of Pakistan (SBP) continued to remain under pressure, shrinking 1.4% on a weekly basis, according to data released by the central bank
  • Overseas Workers remittances touch 7 month high at USD1.77bn in Mar’18, a development that comes on the back of second round rupee devaluation against us dollar
  • The exports of merchandise posted a growth of 24%YoY to USD2.2bn in March, the Ministry of Commerce announced
  • Car sales rose 4% to 18,988 units in March over the same month a year earlier, industry data showed on Wednesday, as lower auto finance rates and growing demand from ride-hailing services piqued interest of consumers
  • Amreli Steels in a bourse filing on Monday said it has shelved plans for a partnership with a Chinese firm in an electrical transmission equipment project
  • Pakistan State Oil (PSO) this week issued its first fuel oil import tender for the year after suspending purchases at the end of 2017 ahead of an expected pickup in demand during summer. PSO in December halted imports of fuel oil amid an abrupt drop in domestic demand as the South Asian country turned to liquefied natural gas (LNG) to fuel its power sector
  • State-run Pakistan State Oil (PSO) is in talks with Power China for a partnership in an estimated USD8bn refining project in the country
  • Descon Oxychem ltd (DOL), has recently undertaken a decision to increase the production capacity of their existing hydrogen peroxide manufacturing facility
  • Shield corporation (SHIELD) posted EPS of Rs8.22 for 9MFY18, down by 17% YoY due to increase in finance cost by 64% YoY to Rs12mn and selling & distribution expense by 12% YoY to Rs334mn
  • Fertilizer stocks witnessed a steady rally during the week upon improving international dynamics on the pricing front and the approach of the quarterly earnings season. Top performers in the sector included FFC and FFBL that were buoyant upon expectations on some positive developments on the GIDC front and a cherry picking exercise by savvy investors 
  • KEL remained in the limelight throughout the week as a slew of rumours kept market players busy with anticipation of some headroom likely in the Multi-Year tariff pending review by NEPRA and rumours of the federal cabinet giving a final nod for KEL-Shanghai Electric deal
  • International oil prices swayed past the USD70/barrel mark which helped sentiments in the local E&P space but a lack of general appetite for fresh buying prevented a full blown rally in the sector. The earnings season is expected to be unrolled from the upcoming week whereby POL’s result will be keenly awaited as market players expect the company to undo a revenue reversal taken earlier on account of windfall levy on oil 
  • Agha Steel Industries Ltd (ASIL) planned to raise around five billion rupees through a local Islamic bond to propel its production to meet growing steel demand in Pakistan, the company said in a statement on Tuesday, after the steelmaker shelved its plan last year to roll out the country’s biggest-ever private sector public offer
  • Pakistan’s gross domestic product (GDP) growth is expected to accelerate to 5.6 per cent on strong prospects for large-scale manufacturing and crop harvests for a second year in a row


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 185.9
Target Price: PKR 261

Adamjee Insurance (AICL) – BUY 
Current Price: PKR 56.97
Target Price: PKR 83

Attock Petroleum (APL) – BUY 
Current Price: PKR 606.60
Target Price: PKR 745.14

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 90.05
Target Price: PKR 128

Cherat Cement (CHCC) – BUY 
Current Price: PKR 128.9
Target Price: PKR 153

Dera Ghazi Khan Cement (DGKC) – BUY 
Current Price: PKR 159.6   
Target Price: PKR 194

ENGRO Corporation (ENGRO) – BUY 
Current Price: PKR 313.68
Target Price: PKR 348.84

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 71.27
Target Price: PKR 79.94

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 31.97
Target Price: PKR 45.1

Fauji Cement Company Limited (FCCL) – BUY 
Current Price: PKR 29.6   
Target Price: PKR 39

Fauji Fert. Bin Qasim Limited (FFBL) – BUY 
Current Price: PKR 44.51
Target Price: PKR 48.10

Gharibwal Cement Ltd (GWLC) – BUY 
Current Price: PKR 27.52
Target Price: PKR 58

General Tyre & Rubber (GTYR) – BUY 
Current Price: PKR 200.17
Target Price: PKR 231

Hascol Petroleum (HASCOL) – BUY 
Current Price: PKR 268.84
Target Price: PKR 317.69

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 209.2 
Target Price: PKR 248

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

Habib Metro (HMB) – BUY 
Current Price: PKR 44.98
Target Price: PKR 50

Hi-Tech Lubricant (HTL) – BUY 
Current Price: PKR 103.03
Target Price: PKR 116

HUBCO (HUBC) – BUY 
Current Price: PKR 104.9
Target Price: PKR 138.7

Indus Motors (INDU) – BUY 
Current Price: PKR 1,850.38   
Target Price: PKR 2,069

Kohat Cement (KOHC) – BUY
Current Price: PKR 161
Target Price: PKR 248

Lalpir Power (LPL) – BUY 
Current Price: PKR 20.9
Target Price: PKR 30

Lucky Cement (LUCK) – BUY 
Current Price: PKR 684.8
Target Price: PKR 827

MARI Petroleum (MARI) – BUY 
Current Price: PKR 1,517
Target Price: PKR 2040 

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR  214.9         
Target Price: PKR 252

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 76
Target Price: PKR 107

National Foods (NATF) – BUY 
Current Price: PKR 314.99
Target Price: PKR 413

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 52.26
Target Price: PKR 74

Nishat Chunian (NCL) – BUY 
Current Price: PKR 52.58
Target Price: PKR 69

Nishat Chunian Power (NCPL) – BUY 
Current Price: PKR 30.52
Target Price: PKR 50

Nishat Power (NPL) – BUY 
Current Price: PKR 32.04
Target Price: PKR 51

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 175.73   
Target Price: PKR 193

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 70
Target Price: PKR 109

Pakgen Power (PKGP) – BUY 
Current Price: PKR 21.03
Target Price: PKR 34

Power Cement (POWER) – BUY 
Current Price: PKR 9.72
Target Price: PKR 16

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 214.98
Target Price: PKR 239

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 501.18
Target Price: PKR 620

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 332.27   
Target Price: PKR 392

United Bank Limited (UBL) – BUY 
Current Price: PKR 204.5           
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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