Pakistan Stock Exchange (PSX) Weekly Analysis 23 December, 2018

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

Top gainers of last week were: MLCF, APL, FFBL, PAKT, ENGRO, KEL, ABL, TRG.

Top losers of last week were: PPL, HBL, POL, GWLC, PSMC, FFC, BAHL.

Top Volume Leaders of last week:  KEL, BOP, PAEL, EPCL and TRG.

The Pakistan Stock Exchange (PSX) market index witnessed a dull activity throughout the week and the Index consolidated around 38,000 levels. The decline in the market was primarily witnessed due to the decline in oil prices in the international market and the continuing uncertainty on the economic front. The Index showed a slight recovery during the last trading day of the week on the announcement of USD 3bn economic assistance package by UAE. KSE-100 index closed on 38,251 by losing 335 points, while KSE-30 index closed on 18,059 by losing 347 points.

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


  • The E&P and Banking stocks emerged as the negative contributors and eroded 374 and 177 points respectively
  • Increased clarity on points of contention between the IMF and Pakistan's negotiations over an additional facility with FX support in the form of previously pledged US1bn from Saudi Arabia and financing facility worth US$3bn from the UAE failed to raise participation (average daily turnover for the week fell 13.4%WoW) and fermented bearish sentiment
  • Foreigners continued to stand out the major sellers with net outflows of USD12.2mn. The mutual funds and Individuals were the net buyers worth USD7mn cumulatively
  • In a meeting of senior representatives of different Islamic banks on matters pertaining to the launch of Islamic Sukuk by the GoP's power sector holding company, while the Economic Coordination Committee (ECC) of the Cabinet has reportedly directed Power Division and Finance Division to prepare a joint plan for raising PkR300bn Islamic financing by mortgaging Discos' assets
  • A bit of a commotion was caused at the of 'withdrawal of public announcement of intention (PoI) to acquire 18,336 mn shares or 66.40 per cent stake in K-Electric Ltd by Shanghai Electric Power Company Ltd', where a fresh PoI is highly likely
  • The country's liquid foreign exchange reserves increased by US$831mnWoW, mainly due to arrival of US$1bn from Saudi Arabia with total liquid forex reserves at US$14.584bn as on Dec 14th while the UAE's Abu Dhabi Development Fund reportedly pledged to keep US$3bn in the SBP's coffers
  • The Banks, Technology, Power and Chemical sectors were the volume leaders
  • IMF demands sharp revenue hikes
  • PC board refuses to delay privatization of three firms
  • Government offers IMF Rs190b in new taxes for bailout
  • PTI government likely to present second mini-budget in Jan
  • Upcoming judgment for landmark accountability cases before various judicial forums and news flow pertaining to granular details surrounding an IMF facility and bi-lateral assistance should keep markets range bound over the coming week

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 107.51
Target Price: PKR 121

Attock Cement Ltd. (ACPL) – BUY 
Current Price: PKR 117.69
Target Price: PKR 140.6

Askari Bank (AKBL) – BUY 
Current Price: PKR 23.88
Target Price: PKR 28.4

Attock Petroleum (APL) – BUY 
Current Price: PKR 429.68
Target Price: PKR 530.3

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 49.61
Target Price: PKR 92.0

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 46.33
Target Price: PKR 69.6

Bank of Punjab (BOP) – BUY 
Current Price: PKR 12.88
Target Price: PKR 18.3

Cherat Cement Co. Ltd. (CHCC) – BUY 
Current Price: PKR 71.95
Target Price: PKR 96

D.G. Khan Cement Co. (DGKC) – BUY 
Current Price: PKR 88.15
Target Price: PKR 122

Engro Corporation (ENGRO) – BUY 
Current Price: PKR 314.37
Target Price: PKR 348.84

Engro Fertilizer (EFERT) – BUY 
Current Price: PKR 72.17
Target Price: PKR 90.3

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 34.15
Target Price: PKR 45.1

Fauji Fertilizer Bin Qasim Ltd. (FFBL) – BUY 
Current Price: PKR 38.02
Target Price: PKR 48.10

Fauji Fertilizer Co. (FFC) – BUY 
Current Price: PKR 91.51
Target Price: PKR 111.4

Gharibwal Cement Ltd (GWLC) – BUY 
Current Price: PKR 16.10
Target Price: PKR 36

Hascol Petroleum (HASCOL) – BUY 
Current Price: PKR 155.37
Target Price: PKR 317.69

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 181.72
Target Price: PKR 170

Honda Atlas Cars (HCAR) – BUY 
Current Price: PKR 181.72
Target Price: PKR 206

HUB Power Co. (HUBCO) – BUY 
Current Price: PKR 89.55
Target Price: PKR 136.9

Indus Motors (INDU) – BUY 
Current Price: PKR 1,204.88
Target Price: PKR 1,426.6

Kot Addu Power Co. (KAPCO) – BUY 
Current Price: PKR 49.96
Target Price: PKR 64

Kohat Cement Company (KOHC) – BUY 
Current Price: PKR 87.71
Target Price: PKR 111

Lotte Chemical Pak Ltd. (LOTCHEM) – BUY 
Current Price: PKR 18.08
Target Price: PKR 25.3

Lucky Cement (LUCK) – BUY 
Current Price: PKR 486.88
Target Price: PKR 605.8

Mari Petroleum Ltd. (MARI) – BUY 
Current Price: PKR   1309.56
Target Price: PKR  1,983.6

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR   194.76
Target Price: PKR 231.4

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 43.96
Target Price: PKR 56.6

Millat Tractors Limited (MTL) – BUY 
Current Price: PKR 894.12
Target Price: PKR  1,017

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 45.73
Target Price: PKR 57.74

Nishat Mills (NML) – BUY 
Current Price: PKR 132.03
Target Price: PKR 167.5

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 133.61
Target Price: PKR 193

Pak Elecktron Limited (PAEL) – BUY 
Current Price: PKR 27
Target Price: PKR 51.70

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 44.21
Target Price: PKR 60

Pakistan Oilfields (POL) – BUY 
Current Price: PKR 429.97
Target Price: PKR 657

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 154.04
Target Price: PKR 239

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 186.02
Target Price: PKR 346

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 239.75
Target Price: PKR 399.08

Sui Northern Gas Pipeline (SNGP) – BUY 
Current Price: PKR 76.86
Target Price: PKR 96.2

United Bank Limited (UBL) – BUY 
Current Price: PKR 139.40
Target Price: PKR 173.9

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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