Pakistan Stock Exchange (PSX) Weekly Analysis 21 May, 2018

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

Top gainers of last week were: JDWS, MUREB, JSCL, DCR, HMB, SSGC, ATLH, IBFL, COLG and PMPK.

Top losers of last week were: UNITY, PAEL, ATRL, CSAP, HCAR, SEARL, TRG, LUCK, FCCL and INIL.

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

The Pakistan Stock Exchange (PSX) market index remained in shambles for the third consecutive week in a row with benchmark KSE-100 index splashing red on the screen in all trading sessions. KSE-100 index has closed on 41,624 by losing -1971 points or - 4.52 %. While KSE-30 index has closed on 20,314 by losing -1065 points or -4.98 %.

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

• Bears slammed volatile political climate post controversial comments by ex-PM Nawaz Sharif made over the weekend on Mumbai terror attack as it added towards overall uncertainty surrounding the upcoming general elections 
• Recent numbers showing continued downward spiral in FX reserves (State Bank of Pakistan held US$10.79bn as on May 11, 2018, implying import cover of less than 2.5 months)
• International oil prices hitting US$80/bbl mark
• Foreign exchange: SBP's reserves plunge 3.26% to USD10.8bn
• Foreign selling in Commercial banks kept whole sector under pressure during the week and eroded 346 points from the index. Among scrips HBL lost 4 5% UBL ( 5%) and MCB ( 1%) during the week
• Engro Polymers (EPCL) has announced right shares of 37% at price of Rs22 per share (inclusive of premium of PKR 12/share) for expansion of its PVC capacity by 100k tons to 295k tons and debottlenecking of 50k tons of VCM
• The ground breaking for the 780-kilometre long portion of Turkmenistan-Afghanistan-Pakistan-India (Tapi) Pipeline has been put on hold for the next couple of months, delaying initiation of civil work that was earlier planned to be done in December last year
• Foreign direct investment (FDI) has grown at a slower pace during the current financial year compared to the same period last year
• Kuwait’s Noor Financial Investment said on Wednesday a foreign financial firm has shown interest in buying part of its stake in Pakistan’s leading Islamic lender Meezan Bank
• Government has consumed one billion dollars of short-term loans taken from Chinese banks within a fortnight to settle repayments of old debts
• As per the recent SBP data, Pakistan external debt has reached to a record of US$91.8bn (30.8% of GDP) reflecting an increase of US$8.3bn in 9MFY18

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 94.90
Target Price: PKR 122

Attock Cement (ACPL) – BUY 
Current Price: PKR 158.64
Target Price: PKR 261

Adamjee Insurance (AICL) – BUY 
Current Price: PKR 49.84
Target Price: PKR 83

Attock Petroleum (APL) – BUY 
Current Price: PKR 610.07
Target Price: PKR 745.14

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 75.32
Target Price: PKR 128

Cherat Cement (CHCC) – BUY 
Current Price: PKR 113.43
Target Price: PKR 153

Dera Ghazi Khan Cement (DGKC) – BUY 
Current Price: PKR 126.32
Target Price: PKR 194

ENGRO Corporation (ENGRO) – BUY 
Current Price: PKR 288.10
Target Price: PKR 348.84

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 28.03
Target Price: PKR 45.1

Fauji Cement Company Limited (FCCL) – BUY 
Current Price: PKR 24.31
Target Price: PKR 39

Fauji Fert. Bin Qasim Limited (FFBL) – BUY 
Current Price: PKR 37.84
Target Price: PKR 48.10

Gharibwal Cement Ltd (GWLC) – BUY 
Current Price: PKR 22.01
Target Price: PKR 58

General Tyre & Rubber (GTYR) – BUY 
Current Price: PKR 164.99
Target Price: PKR 231

Hascol Petroleum (HASCOL) – BUY 
Current Price: PKR 293.06
Target Price: PKR 372

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 167.93
Target Price: PKR 248

Honda Cars (HCAR) – BUY 
Current Price: PKR 403
Target Price: PKR 707

Habib Metro (HMB) – BUY 
Current Price: PKR 43.75
Target Price: PKR 50

Hi-Tech Lubricant (HTL) – BUY 
Current Price: PKR 90.99
Target Price: PKR 116

HUBCO (HUBC) – BUY 
Current Price: PKR 94.51
Target Price: PKR 138.7

Indus Motors (INDU) – BUY 
Current Price: PKR 1,594.94
Target Price: PKR 2,069

Kot Addu Power (KAPCO) – BUY
Current Price: PKR 55.76
Target Price: PKR 65

Kohat Cement (KOHC) – BUY
Current Price: PKR 134.68
Target Price: PKR 248

Lalpir Power (LPL) – BUY 
Current Price: PKR 19.25
Target Price: PKR 30

Lucky Cement (LUCK) – BUY 
Current Price: PKR 556.83
Target Price: PKR 827

MARI Petroleum (MARI) – BUY 
Current Price: PKR 1,520
Target Price: PKR 2,040 

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR   197.45
Target Price: PKR 252

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 63.54
Target Price: PKR 107

National Foods (NATF) – BUY 
Current Price: PKR 330
Target Price: PKR 413

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 47.27
Target Price: PKR 74

Nishat Chunian (NCL) – BUY 
Current Price: PKR 48.53
Target Price: PKR 69

Nishat Chunian Power (NCPL) – BUY 
Current Price: PKR 26.07
Target Price: PKR 50

Nishat Mills (NML) – BUY 
Current Price: PKR 131.14
Target Price: PKR 174

Nishat Power (NPL) – BUY 
Current Price: PKR 28.90
Target Price: PKR 51

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 161.56
Target Price: PKR 193

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 51.91
Target Price: PKR 109

Pakgen Power (PKGP) – BUY 
Current Price: PKR 19.21
Target Price: PKR 34

Pakistan Oilfields (POL) – BUY 
Current Price: PKR 650.77
Target Price: PKR 714

Power Cement (POWER) – BUY 
Current Price: PKR 9.01
Target Price: PKR 16

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 206.38
Target Price: PKR 239

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 459.48
Target Price: PKR 620

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 303.59
Target Price: PKR 392

United Bank Limited (UBL) – BUY 
Current Price: PKR 166.54
Target Price: PKR 238

Thank you very much for reading this article.

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Written by: Rana Khuram