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

BUY recommendations are:  ABL, ACPL, APL, AKBL, ASTL, BAFL, CHCC, DGKC, EFERT, ENGRO, FATIMA, FFBL, FFC, GWLC, HASCOL, HBL, HCAR, HUBCO, INDU, KAPCO, KOHC, LOTCHEM, LUCK, MCB, MLCF, MARI, NBP, NCL, NCPL, NML, NPL, OGDC, PAEL, PIOC, POL, PPL, PSMC, PSO, SEARL, SNGPL, UBL.

Top gainers of last week were: INDU, DGKC, FCCL, EFOODS, and MLCF.

Top losers of last week were: MCB, HBL, KAPCO, FFC, and FATIMA.

Top Volume Leaders of last week:  TRG, LOTCHEM, WTL, EPCL, and BOP.

The Pakistan Stock Exchange (PSX) market index staged a strong recovery in the last three sessions after losing 854 points in the first two trading sessions, as the investor’s regained confidence amid government guidance to address the external woes. KSE-100 index closed on 38,430 by gaining 912 points or 2.4 percent, while KSE-30 index closed on 18,449 by gaining 192 points.

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


  • Average daily volume traded improved by 13% WOW to 199 mn shares however most of it was concentrated in low-priced stocks as average traded value actually declined by 5.2% to USD49mn
  • State Bank of Pakistan foreign exchange reserves declined by 2.6% WoW (USD219mn) to USD8.1bn as at October 12, 2018. The decline came on the back of debt servicing and other official payments. Total liquid forex reserves held by the country stood at USD14.6bn
  • Government intent to rationalize the taxation regime for the capital market has been greeted with a great optimism, improving the market sentiment
  • Finance Minister Asad Umer announcing that the IMF team will visit Pakistan on Nov 07’18 to negotiate potential bailout
  • FBR notifying the regulatory duty on 570 imported items ranging from electronic items, woven fabrics, ceramic items, paper, bars/rods, and iron products
  • Federal cabinet delaying hike in consumer power tariff while announcing uninterrupted gas supply to five zero-rated export sectors
  • Credit rating agency, Moody’s, terming IMF financing facility as a credit positive for Pakistan, an imperative to address macroeconomic imbalance and restore confidence in the economy
  • SBP slashing estimates of GDP growth to 4.5-5% in FY19 (vs. GOP target of 6.2%) considering tough macroeconomic backdrop (i.e. monetary tightening & currency devaluation)
  • Key events to track are PM Imran Khan’s visit to Saudi Arabia (scheduled on Oct 23’18) and IMF team visit to Pakistan on Nov 07’18
  • Result season is in full swing with major players in Banking (NBP, ABL, MCB, & HBL) Cement (FCCL, BWCL, KOHC, & DGKC) Power (KAPCO & HUBC) & Auto sectors (PSMC & INDU) scheduled to announce their results next week

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 97
Target Price: PKR 134.9

Attock Cement Limited (ACPL) – BUY 
Current Price: PKR 111.32
Target Price: PKR 167.6

Attock Petroleum (APL) – BUY 
Current Price: PKR 447.93
Target Price: PKR 724.84

Askari Bank Limited (AKBL) – BUY 
Current Price: PKR 23.10
Target Price: PKR 29.2

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 59
Target Price: PKR 128

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 48
Target Price: PKR 69.6

Cherat Cement Co. Ltd. (CHCC) – BUY 
Current Price: PKR 60
Target Price: PKR 69.6

D.G. Khan Cement Co. (DGKC) – BUY 
Current Price: PKR 88
Target Price: PKR 122

Engro Fertilizer (EFERT) – BUY 
Current Price: PKR 76
Target Price: PKR 90.3

Engro Corporation (ENGRO) – BUY 
Current Price: PKR 301
Target Price: PKR 348.84

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 36
Target Price: PKR 45.1

Fauji Fertilizer Bin Qasim Ltd. (FFBL) – BUY 
Current Price: PKR 35
Target Price: PKR 48.10

Fauji Fertilizer Co. (FFC) – BUY 
Current Price: PKR 90
Target Price: PKR 111.4

Gharibwal Cement Ltd (GWLC) – BUY 
Current Price: PKR 17
Target Price: PKR 36

Hascol Petroleum (HASCOL) – BUY 
Current Price: PKR 262.00
Target Price: PKR 317.69

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 127
Target Price: PKR 248

Honda Atlas Cars (HCAR) – BUY 
Current Price: PKR 196.20
Target Price: PKR 325.3

HUB Power Co. (HUBCO) – BUY 
Current Price: PKR 82.56
Target Price: PKR 142.70

Indus Motors (INDU) – BUY 
Current Price: PKR 1,224
Target Price: PKR 1,864

Kot Addu Power Co. (KAPCO) – BUY 
Current Price: PKR 55.19
Target Price: PKR 61.7

Kohat Cement Co. (KOHC) – BUY 
Current Price: PKR 84.03
Target Price: PKR 152.5

Lotte Chemical Pak Ltd. (LOTCHEM) – BUY 
Current Price: PKR 16.22
Target Price: PKR 17.1

Lucky Cement (LUCK) – BUY 
Current Price: PKR 435
Target Price: PKR 636

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR   179
Target Price: PKR 252

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 40
Target Price: PKR 65

Mari Petroleum Ltd. (MARI) – BUY 
Current Price: PKR 1,419.48
Target Price: PKR 1,959.7

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 49
Target Price: PKR 57.74

Nishat Chunian Ltd. (NCL) – BUY 
Current Price: PKR 51
Target Price: PKR 57.15

Nishat Chunian Power Ltd. (NCPL) – BUY 
Current Price: PKR 22.38
Target Price: PKR 32.7

Nishat Mills (NML) – BUY 
Current Price: PKR 132
Target Price: PKR 169

Nishat Power Limited (NPL) – BUY 
Current Price: PKR 24.52
Target Price: PKR 39.8

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 148.63
Target Price: PKR 193

Pak Elecktron Limited (PAEL) – BUY 
Current Price: PKR 25.41
Target Price: PKR 51.70

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 44
Target Price: PKR 60

Pakistan Oilfields (POL) – BUY 
Current Price: PKR 523.29
Target Price: PKR 676.29

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 177.50
Target Price: PKR 239

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 238
Target Price: PKR 346

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 239
Target Price: PKR 399.08

The Searle Co. Ltd. (SEARL) – BUY 
Current Price: PKR 246.92
Target Price: PKR 505

Sui Northern Gas Pipeline Ltd. (SNGPL) – BUY 
Current Price: PKR 79.45
Target Price: PKR 131.6

United Bank Limited (UBL) – BUY 
Current Price: PKR 139
Target Price: PKR 210

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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