Pakistan Stock Exchange (PSX) Weekly Analysis 22 July, 2018

BUY recommendations are:  ABL, ACPL, AKBL, APL, ASTL, CHCC, DGKC, ENGRO, FATIMA, FCCL, FFBL, GWLC, HBL, HCAR, HUBC, INDU, KAPCO, KOHC, LOTCHEM, LUCK, MARI, MCB, MLCF, MTL, NBP, NCL, NML, NPL, OGDC, PAEL, PIOC, PPL, PSMC, PSO, SEARL, SNGP and UBL.

Top gainers of last week were: UBL, MLCF, NCL, ASTL, and DGKC.

Top losers of last week were: NBP, PSMC, FFBL, GWLC and KAPCO.

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

The Pakistan Stock Exchange (PSX) market index opened the week on a negative note, plunging 605pts on its first trading session, however, fresh liquidity deployed by local AMCs rendered the much-needed support, with KSE-100 index closing the week at 41,222pts (up 951pts/2.36%WoW). While KSE-30 index closed on 20,398 by gaining 533 points.

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


  • With the country heading to General Elections 2018 (scheduled on Jul 25’18), political euphoria once again likely to dominate in the week ahead. In this regard, market activity could switch gear down, with investors staying on sidelines till election results. Post-election, market will react positively to strong mandate irrespective of which political party (PML-N or PTI) takes the lead
  • If we consider the last five elections, the domestic bourse has generated an average of 31% return during the first year of the government. This analysis includes 2008 which generated negative returns of 59% attributable to the global financial crisis,” according to the investment strategy report
  • Reeling on political crisis (further intensified by the arrest of Nawaz Sharif and his daughter), market opened the week on a negative note
  • Steel and cements garnered investors’ interest, as the respective sector increased retail prices passing on rupee depreciation impact
  • Trading activity at the bourse substantially improved during the week, with avg. daily turnover increasing to 219.46mn shares (up 67.92%WoW)
  • Current account deficit for FY18 reached record levels of US$18.0bn, reflecting a growth of 42.6%YoY from US$12.6bn in FY17, while GoP financed the external imbalance through US$11.4bn borrowings
  • Rupee further lost 5.4% against Greenback on Monday, with PKR/US$ parity closing the week at PkR128.5
  • Total FX reserves declined by US$402mn, ending at US$15.7bn while central bank reserves plunged 4.4%WoW to record at US$9.1bn (implying import cover of 1.9 months)
  • SBP withdrew advance payment facility for importers and imposed 100% cash margin requirement on non-essential items
  • FBR has allowed sales tax adjustment paid at customs clearance stage by steel melters on import of raw materials including various categories of remeltable iron and steel scrap

Following are few BUY recommendations:

Allied Bank Ltd (ABL) – BUY 
Current Price: PKR 105.98
Target Price: PKR 125.5

Attock Cement Ltd (ACPL) – BUY 
Current Price: PKR 135.29
Target Price: PKR 195.4

Askari Bank Ltd (AKBL) – BUY 
Current Price: PKR 23.68
Target Price: PKR 28.2

Attock Petroleum (APL) – BUY 
Current Price: PKR 550
Target Price: PKR 745.14

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 62.35
Target Price: PKR 128

Cherat Cement (CHCC) – BUY 
Current Price: PKR 87.59
Target Price: PKR 153

Dera Ghazi Khan Cement (DGKC) – BUY 
Current Price: PKR 102.83
Target Price: PKR 194

ENGRO Corporation (ENGRO) – BUY 
Current Price: PKR 316.54
Target Price: PKR 348.84

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 33.48
Target Price: PKR 45.1

Fauji Cement Company Limited (FCCL) – BUY 
Current Price: PKR 21.37
Target Price: PKR 39

Fauji Fert. Bin Qasim Limited (FFBL) – BUY 
Current Price: PKR 36.12
Target Price: PKR 48.10

Gharibwal Cement Ltd (GWLC) – BUY 
Current Price: PKR 19.11
Target Price: PKR 36

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 170.71
Target Price: PKR 248

Honda Atlas Cars (Pak) Ltd. (HCAR) – BUY 
Current Price: PKR 287.48
Target Price: PKR 671.6

HUBCO (HUBC) – BUY 
Current Price: PKR 91.01
Target Price: PKR 138.7

Indus Motors (INDU) – BUY 
Current Price: PKR 1,319.60
Target Price: PKR 2,069

Kot Addu Power (KAPCO) – BUY
Current Price: PKR 53.91
Target Price: PKR 65

Kohat Cement Company (KOHC) – BUY
Current Price: PKR 114.77
Target Price: PKR 169.4

Lotte Chemical Pak Ltd. (LOTCHEM) – BUY
Current Price: PKR 12.83
Target Price: PKR 15.9

Lucky Cement (LUCK) – BUY 
Current Price: PKR 506.56
Target Price: PKR 827

Mari Petroleum (MARI) – BUY 
Current Price: PKR   1460.40
Target Price: PKR 2130

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR   208.28
Target Price: PKR 252

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 46.04
Target Price: PKR 107

Millat Tractors Ltd. (MTL) – BUY 
Current Price: PKR 1098.47
Target Price: PKR 1604

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 48.96
Target Price: PKR 74

Nishat Chunian (NCL) – BUY 
Current Price: PKR 49.07
Target Price: PKR 69

Nishat Mills (NML) – BUY 
Current Price: PKR 136.87
Target Price: PKR 174

Nishat Power Limited (NPL) – BUY 
Current Price: PKR 29.00
Target Price: PKR 39.1

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 148.57
Target Price: PKR 193

Pak Elecktron Limited (PAEL) – BUY 
Current Price: PKR 32.48
Target Price: PKR 51.70

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 44.32
Target Price: PKR 109

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 207.74
Target Price: PKR 239

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 356.25
Target Price: PKR 620

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 294.48
Target Price: PKR 392

Searle Company Ltd. (SEARL) – BUY 
Current Price: PKR 300.43
Target Price: PKR 505

Sui Northern Gas Pipeline Ltd. (SNGP) – BUY 
Current Price: PKR 90.84
Target Price: PKR 163.1

United Bank Limited (UBL) – BUY 
Current Price: PKR 177.16
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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