Pakistan Stock Exchange (PSX) Weekly Analysis 6 January, 2019

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, NCL, NML, OGDC, PAEL, PIOC, POL, PPL, PSMC, PSO, SNGP, and UBL.

Top gainers of last week were: BAFL, BAHL, CHCC, ENGRO, PIOC, POL, and HBL.

Top losers of last week were: MTL, NESTLE, LUCK, ATRL, DAWH, FATIMA, HASCOL, EFOODS, FFBL, and NCL.
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Top Volume Leaders of last week:  TRG, PAEL, KEL, SILK, and BOP.

The Pakistan Stock Exchange (PSX) market index had a turbulent first week of the new year, with the wild intra-day moves. KSE-100 index closed on 37,547 by gaining 380 points or 1.02 %, while KSE-30 index closed on 17,595 by gaining 321 points or 1.86 %.

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


  • Trading activity remained largely subdued with average daily trading volumes further declining to 106.95mn shares, down 3.1%WoW
  • Sector‐wise Commercial Banks, Oil & Gas Exploration Companies and Fertilizer were the best performing sectors as they added 471 points, cumulatively
  • Finance Minister Asad Umer hinting towards another fiscal adjustment, with likely announcement of mini-budget in mid Jan’19
  • The government officials reportedly announcing that the Chinese government agreed to lend US$2bn to Pakistan for helping it boost dwindling foreign exchange reserves
  • Markedly below consensus expectations, monthly inflation reading for Dec’18 clocking in at 6.17%YoY compared to 6.5%YoY in Nov’18 and 4.57%YoY in Dec’17
  • US President Donald Trump hinting towards a better relationship with Pakistan, eyeing meet-up with Pakistani leadership
  • FX reserves held by central bank further dwindling US$170mn to reach at US$7.28bn during the week ended Dec 28’18
  • Foreigners remained net sellers, offloading US$0.51mn worth of equities, compared to US$1.1mn outflow in the previous week
  • Ongoing graft hearings in the apex court against the main opposition leaders could lead to limited investors’ participation
  • Reserves held by the State Bank of Pakistan decreased by US$170mn to US$7.29bn on account of external debt servicing and other official payments during the week ended on Dec 28
  • The government has jacked up the price of indigenous liquefied petroleum gas (LPG) by Rs2/kg or Rs22.92/11.8kg for the month of January 2019, which translates into an increase of 1.71% over the previous month
  • Pakistan LNG is seeking five liquefied natural gas (LNG) cargoes for delivery over March to April, a tender document showed
  • A consistent fall in cotton cultivation area for the last seven years has eventually reduced crop production to little over 10 million bales this year from the bumper crop of 15m bales in 2011‐12
  • Opec oil supply fell in December by the largest amount in almost two years, as top exporter Saudi Arabia made an early start to a supply‐limiting accord while Iran and Libya posted involuntary declines
  • Foreign exchange firms provided US$13bn to the government through commercial banks over the last nine years to stabilize the currency market, an official said
  • Prime Minister Imran Khan met with a delegation of the Turkey‐Pakistan Business Council of the Foreign Economic Relations Board of Turkey
  • Gold prices scaled a more than six‐month peak as fears of a global economic slowdown embellished safe‐haven demand for bullion, with a weaker dollar adding further support
  • Prime Minister Imran Khan invited Turkish businessmen and investors to invest in various fields and industries in Pakistan, including construction, tourism and exploration of natural resources


Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 107
Target Price: PKR 118.5

Attock Cement Ltd. (ACPL) – BUY 
Current Price: PKR 106.11
Target Price: PKR 140.6

Askari Bank (AKBL) – BUY 
Current Price: PKR 23.49
Target Price: PKR 28.4

Attock Petroleum (APL) – BUY 
Current Price: PKR 445.05
Target Price: PKR 479.57

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 46.93
Target Price: PKR 80.0

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 45.86
Target Price: PKR  60.1

Bank of Punjab (BOP) – BUY 
Current Price: PKR 12.06
Target Price: PKR 18.3

Cherat Cement Co. Ltd. (CHCC) – BUY 
Current Price: PKR 71.75
Target Price: PKR 96

D.G. Khan Cement Co. (DGKC) – BUY 
Current Price: PKR 82.20
Target Price: PKR 105.00

Engro Corporation (ENGRO) – BUY 
Current Price: PKR 313.56
Target Price: PKR 348.84

Engro Fertilizer (EFERT) – BUY 
Current Price: PKR 72.02
Target Price: PKR 91.0

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 34.18
Target Price: PKR 45.1

Fauji Fertilizer Bin Qasim Ltd. (FFBL) – BUY 
Current Price: PKR 35.82
Target Price: PKR 43.5

Fauji Fertilizer Co. (FFC) – BUY 
Current Price: PKR 93.01
Target Price: PKR 111.4

Gharibwal Cement Ltd (GWLC) – BUY 
Current Price: PKR 15.28
Target Price: PKR 25

Hascol Petroleum (HASCOL) – BUY 
Current Price: PKR 143.59
Target Price: PKR 317.69

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 125.41
Target Price: PKR 143.25

Honda Atlas Cars (HCAR) – BUY 
Current Price: PKR 176.68
Target Price: PKR 206

HUB Power Co. (HUBCO) – BUY 
Current Price: PKR 85.60
Target Price: PKR 136.9

Indus Motors (INDU) – BUY 
Current Price: PKR 1,181.57
Target Price: PKR 1,426.6

Kot Addu Power Co. (KAPCO) – BUY 
Current Price: PKR 52.80
Target Price: PKR 64

Kohat Cement Company (KOHC) – BUY 
Current Price: PKR 83.53
Target Price: PKR 111

Lotte Chemical Pak Ltd. (LOTCHEM) – BUY 
Current Price: PKR 17.27
Target Price: PKR 25.3

Lucky Cement (LUCK) – BUY 
Current Price: PKR 441.71
Target Price: PKR 605.8

Mari Petroleum Ltd. (MARI) – BUY 
Current Price: PKR   1300.85
Target Price: PKR  1,983.6

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR   187.98
Target Price: PKR 224.73

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 42.75
Target Price: PKR 56.6

Millat Tractors Limited (MTL) – BUY 
Current Price: PKR 787.95
Target Price: PKR  1,017

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 42.58
Target Price: PKR 66.51

Nishat Chunian Limited (NCL) – BUY 
Current Price: PKR 48.98
Target Price: PKR 67.7

Nishat Mills (NML) – BUY 
Current Price: PKR 134.59
Target Price: PKR 158

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 130.18
Target Price: PKR 193

Pak Elecktron Limited (PAEL) – BUY 
Current Price: PKR 24.41
Target Price: PKR 28.20

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 45.24
Target Price: PKR 60

Pakistan Oilfields (POL) – BUY 
Current Price: PKR 430.09
Target Price: PKR 593.0

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 150.08
Target Price: PKR 239

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 181.23
Target Price: PKR 244.87

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 227.40
Target Price: PKR 298.00

Sui Northern Gas Pipeline (SNGP) – BUY 
Current Price: PKR 75.38
Target Price: PKR 96.2

United Bank Limited (UBL) – BUY 
Current Price: PKR 131.39
Target Price: PKR 154.60

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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