Pakistan Stock Exchange (PSX) Weekly Analysis 22 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: COLG, PAKT, ABOT, UNITY, AGIL, BAFL, APL, EFERT, INDU, and KAPCO.

Top losers of last week were: NRL, DGKC, BNWM, FML, FCCL, HBL, OGDC, DGKC, and FFBL.

Top Volume Leaders of last week: EPCL, LOTCHEM, UNITY, KEL, FCCL.

The Pakistan Stock Exchange (PSX) market index ended the week down 2% WoW (-812 points) to settle at 45,388 points as budget related excitement (GIDC cut and potential impact on fertilizers) fizzled out and concerns over foreign selling, future political set up post elections and the upcoming budget caused investors to adopt caution. KSE-100 index has closed on 45,259 by losing 813 points or -1.76%. While KSE-30 index has closed on 22,309 by losing 722 points or -3.13 %.

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

  • Current account deficit widening to US$12.03bn (up 51%YoY) for 9MFY18 reflecting mounting pressure of trade deficit
  • On a sector specific basis, Textiles (+3.3% WoW) and Pharmaceuticals (+1.6% WoW) closed positive, whereas, Cements (-4.4% WoW) and Oil & gas (-3.4% WoW) closed the week down, mainly due to dip in cement prices in North region and likely increased supply in OGDC (~USD50mn) post large sell off by foreign investors during the week
  • Expected announcement of an agriculture package in the upcoming budget with relief in taxes (on imported machinery) and a hefty subsidy to support the farmers including removal of sales taxes on tractor (from 5% currently), while the Punjab gov’t increased subsidy on DAP from PkR150/bag to PkR300/bag 
  • Ghandhara Nissan signing an agreement with Renault for import of heavy commercial vehicles primarily for test & trial purposes
  • Federal government borrowing PkR34bn through auction of PIBs where many institutions were previously reluctant to lock in rates at the prevailing historic low levels 
  • Foreign exchange reserves falling to US$17.55bn (-0.53%WoW), where SBP reserves decreased by US$58.7mn ending at US$11.38bn
  • Foreigners continued to offload their holding with majority of the selling coming from OGDC’s share placement deal (~54mn shares) at PkR164/sh
  • Cumulative outflow was recorded at US$41.79mn during the week vs. inflow of US$17.45mn last week
  • Investors will keep a close eye on result announcement by large cap. companies including PSO, ENGRO, PPL, OGDC, KAPCO, HUBC, MCB, FFC, FATIMA, INDU & PSMC in the next week
  • E&Ps could garner `investors’ attention as intl. oil prices hit their 4yr high-watermark
  • Anticipation of budgetary measures will likely drive the market in the upcoming week, where GoP is scheduled to present the federal budget on Apr 27’18
  • For the first time in the annals of Parliament, Pakistan Tehreek-e-Insaf (PTI) on Wednesday announced that it is expelling its 20 MPAs for selling out their votes, for Rs 1.3 billion approximately


Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 97
Target Price: PKR 122

Attock Cement (ACPL) – BUY 
Current Price: PKR 181.9
Target Price: PKR 261

Adamjee Insurance (AICL) – BUY 
Current Price: PKR 54
Target Price: PKR 83

Attock Petroleum (APL) – BUY 
Current Price: PKR 625.75
Target Price: PKR 745.14

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 86.03
Target Price: PKR 128

Cherat Cement (CHCC) – BUY 
Current Price: PKR 127.77
Target Price: PKR 153

Dera Ghazi Khan Cement (DGKC) – BUY 
Current Price: PKR 146.25   
Target Price: PKR 194

ENGRO Corporation (ENGRO) – BUY 
Current Price: PKR 312.26
Target Price: PKR 348.84

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 72.82
Target Price: PKR 79.94

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 31.88
Target Price: PKR 45.1

Fauji Cement Company Limited (FCCL) – BUY 
Current Price: PKR 28   
Target Price: PKR 39

Fauji Fert. Bin Qasim Limited (FFBL) – BUY 
Current Price: PKR 39.81
Target Price: PKR 48.10

Gharibwal Cement Ltd (GWLC) – BUY 
Current Price: PKR 26.52
Target Price: PKR 58

General Tyre & Rubber (GTYR) – BUY 
Current Price: PKR 195.23
Target Price: PKR 231

Hascol Petroleum (HASCOL) – BUY 
Current Price: PKR 267
Target Price: PKR 317.69

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 197.44   
Target Price: PKR 248

Honda Cars (HCAR) – BUY 
Current Price: PKR 496
Target Price: PKR 707

Habib Metro (HMB) – BUY 
Current Price: PKR 44.95
Target Price: PKR 50

Hi-Tech Lubricant (HTL) – BUY 
Current Price: PKR 104.51
Target Price: PKR 116

HUBCO (HUBC) – BUY 
Current Price: PKR 102.46
Target Price: PKR 138.7

Indus Motors (INDU) – BUY 
Current Price: PKR 1,883.22     
Target Price: PKR 2,069

Kohat Cement (KOHC) – BUY
Current Price: PKR 155.79
Target Price: PKR 248

Lalpir Power (LPL) – BUY 
Current Price: PKR 19.62
Target Price: PKR 30

Lucky Cement (LUCK) – BUY 
Current Price: PKR 653.18
Target Price: PKR 827

MARI Petroleum (MARI) – BUY 
Current Price: PKR 1,540
Target Price: PKR 2040 

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR  211.20         
Target Price: PKR 252

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 72.66
Target Price: PKR 107

National Foods (NATF) – BUY 
Current Price: PKR 325.60
Target Price: PKR 413

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 50.20
Target Price: PKR 74

Nishat Chunian (NCL) – BUY 
Current Price: PKR 52.02
Target Price: PKR 69

Nishat Chunian Power (NCPL) – BUY 
Current Price: PKR 29.98
Target Price: PKR 50

Nishat Power (NPL) – BUY 
Current Price: PKR 32.60
Target Price: PKR 51

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 164.18     
Target Price: PKR 193

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 68.77
Target Price: PKR 109

Pakgen Power (PKGP) – BUY 
Current Price: PKR 19.50
Target Price: PKR 34

Power Cement (POWER) – BUY 
Current Price: PKR 9.52
Target Price: PKR 16

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 212.39
Target Price: PKR 239

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 482.72
Target Price: PKR 620

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 321.58     
Target Price: PKR 392

United Bank Limited (UBL) – BUY 
Current Price: PKR 195.65           
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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