Pakistan Stock Exchange (PSX) Weekly Analysis 2 September, 2018

BUY recommendations are:  ASTL, FATIMA, GWLC, HBL, INDU, LUCK, MCB, MLCF, NBP, NML, OGDC, PAEL, PIOC, PPL, PSMC and UBL.

Top gainers of last week were: HASCOL, FFBL, NBP, BAFL, and APL.

Top losers of last week were: MLCF, CHCC, PIOC, LUCK, and FFC.

Top Volume Leaders of last week: EPCL, NRSL, AGL, STPL, and UNITY.

The Pakistan Stock Exchange (PSX) market index went downhill in four of the five trading sessions. KSE-100 index closed on 41,742 by losing 846 points or 1.99 percent. While KSE-30 index closed on 20,491 by losing 521 points.

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


  • Fearing gas price hike and its spillover effects on industries, investor sentiments had turned negative even before the ECC meeting
  • An inconclusive outcome with regards to fertilizer inventories, circular debt clearance and postponement of gas price hike led to further selling in the mainboard sectors, ramping the index down for rest of the week 
  • Volumes however improved 19.1%WoW during the outgoing week to daily average of 177.48mn shares
  • World Bank delegation emphasizing that Pakistan needs to focus on private sector policies for a longer time horizon to encourage private investors, while committing an indicative financing of US$11bn in CAS’ 2014-19
  • Moody’s identifying Pakistan as a country most vulnerable to US$ appreciation
  • Pakistan’s budget deficit widening to PkR2.26trn or 6.6% of GDP in FY18
  • Federal Cabinet setting up six committees to introduce reforms in different sectors and to carve out a new province from Punjab
  • Recent data from EAD showing that Pakistan has received US$439mn loans from various international lenders in Jul’18
  • Foreigners continued to offload their stake in domestic equities with net outflow of US$10.0mn in the outgoing week
  • Next ECC meeting (scheduled in the mid of week) in which pending decisions on key areas (i.e. gas pricing and circular debt) would impact market accordingly
  • A visit from US delegation led by Secretary of the State Mike Pompeo is of key strategic importance, where positive developments could improve investors’ confidence

Following are few BUY recommendations:

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 77.46
Target Price: PKR 128

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 33.71
Target Price: PKR 45.1

Gharibwal Cement Ltd (GWLC) – BUY 
Current Price: PKR 20.64
Target Price: PKR 36

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 151.03
Target Price: PKR 248

Indus Motors (INDU) – BUY 
Current Price: PKR 1,513.21
Target Price: PKR 2,069

Lucky Cement (LUCK) – BUY 
Current Price: PKR 540.78
Target Price: PKR 827

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR   201.23
Target Price: PKR 252

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 52.29
Target Price: PKR 107

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 52.34
Target Price: PKR 74

Nishat Mills (NML) – BUY 
Current Price: PKR 135.45
Target Price: PKR 174

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 152.46
Target Price: PKR 193

Pak Elecktron Limited (PAEL) – BUY 
Current Price: PKR 33.99
Target Price: PKR 51.70

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 46.02
Target Price: PKR 109

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 208.30
Target Price: PKR 239

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 283.25
Target Price: PKR 620

United Bank Limited (UBL) – BUY 
Current Price: PKR 158.03
Target Price: PKR 238

Thank you very much for reading this article.

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Written by: Rana Khuram

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