Pakistan Stock Exchange (PSX) Weekly Analysis 3 February, 2019

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

Top gainers of last week were:  PSMC, PPL, BAHL, BYCO, GLAXO, PSO, LUCK, MCB, HASCOL, ASTL, EFOODS, and APL.

Top losers of last week were: FFBL, PAKT, MARI, SML, HCAR, HGFA, FFBL, FATIMA, POL, FFC, and NBP.

Top Volume Leaders of last week:  PIBTL, WTL, EPCL, BOP, PIAA, PAEL and DCL.

The Pakistan Stock Exchange (PSX) market index recorded gains for the 5th consecutive week, as it added 848 points ( or 2.11%), closing at a 50‐session high of 41,113 level. KSE-100 index closed on 41,113 by gaining 848 points or 2.11%, while KSE-30 index closed on 19,738 by gaining 391 points or 2.02%.

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


  • With monetary announcement of 25bps hike pulling-up KSE-100 index (+0.8% on Friday). The State Bank of Pakistan (SBP) on Thursday hiked its benchmark interest rate by 25 basis points (BPS) to 10.25% as the country gets closer to meet the International Monetary Fund (IMF) condition for demand compression
  • The rally was supported by last week’s Economic reform package, the cash deposit from the UAE and Saudi Arabia of US$1bn each, and continued foreigners buying for second consecutive week
  • Commercial banks contributed 238 points during outgoing week amidst 450bps increase in policy rate since Jan 2018. Further, automobile assemblers added 83 points this week on the back of Non‐filers being allowed to buy cars up to 1300cc
  • The government on Thursday announced a reduction in the prices of various petroleum products for the month of February
  • Foreigners were net buyers during the week of US$12 3mn vs US$17mn in the previous week
  • The Asian Infrastructure Investment Bank (AIIB) on Thursday said it w as considering to invest over $1 billion in Pakistan’s critical infrastructure projects in the transport, urban and rural water and energy sectors 
  • Budget developments continue to favorably impact the auto sector, where PSMC/INDU gained 27.6%/3.1%WoW on abolishment of ban on non-filers in the below 1300CC segment
  • IMF related developments where Finance Minister hinted on the fund softening stance
  • Cabinet approving issuance of “Pakistan Banao Certificate” to raise US$500mn
  • Power division allowed to raise PkR200bn to reduce circular debt. Foreigners continue to find market attractive with weekly inflow of US$12.3mn, with activity concentrated in Banks (US$7.68mn), E&P (US$1.65mn), and Cements (US$1.28mn)
  • On the flipside, mutual funds opted for profit taking disposing off US$5.33mn, followed by Banks, US$2.99mn
  • Average volumes for the week stood at 174.84mn vs. 168.46mn in the previous week
  • Pakistan LNG said eight companies have technically qualified to supply spot liquefied natural gas (LNG) into the country over March and April, after receiving a total of 30 bids
  • After crossing the Rs30trn mark as total public debt and liabilities, the Ministry of Finance submitted the debt compliance report before the parliament agreeing that certain targets envisaged under the Fiscal Responsibility and Debt Limitation (FRDL) Act could not be achieved
  • Edotco Group a unit of Malaysian telecoms firm Axiata Group planned to invest US$250mn in the next five years in Pakistan to expand and upgrade its network infrastructure to meet the projected 5‐fold increase in mobile data usage in the country, a company official said

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 112.42
Target Price: PKR 118.5

Attock Cement Ltd. (ACPL) – BUY 
Current Price: PKR 111.97
Target Price: PKR 140.6

Askari Bank (AKBL) – BUY 
Current Price: PKR 24.03
Target Price: PKR 28.4

Attock Petroleum (APL) – BUY 
Current Price: PKR 451.06
Target Price: PKR 479.57

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 52.60
Target Price: PKR 80.0

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 50.18
Target Price: PKR  60.1

Bank of Punjab (BOP) – BUY 
Current Price: PKR 13.58
Target Price: PKR 18.3

Cherat Cement Co. Ltd. (CHCC) – BUY 
Current Price: PKR 68.98
Target Price: PKR 96

D.G. Khan Cement Co. (DGKC) – BUY 
Current Price: PKR 87.20
Target Price: PKR 105.00

Engro Corporation (ENGRO) – BUY 
Current Price: PKR 335.89
Target Price: PKR 348.84

Engro Fertilizer (EFERT) – BUY 
Current Price: PKR 75.99
Target Price: PKR 91.0

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 33.95
Target Price: PKR 45.1

Fauji Fertilizer Bin Qasim Ltd. (FFBL) – BUY 
Current Price: PKR 41.11
Target Price: PKR 43.5

Fauji Fertilizer Co. (FFC) – BUY 
Current Price: PKR 106.17
Target Price: PKR 111.4

Gharibwal Cement Ltd (GWLC) – BUY 
Current Price: PKR 16.91
Target Price: PKR 25

Hascol Petroleum (HASCOL) – BUY 
Current Price: PKR 169.23
Target Price: PKR 234.57

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 150.83
Target Price: PKR 143.25

HUB Power Co. (HUBCO) – BUY 
Current Price: PKR 93.12
Target Price: PKR 136.9

Indus Motors (INDU) – BUY 
Current Price: PKR 1,244.81
Target Price: PKR 1,426.6

Kot Addu Power Co. (KAPCO) – BUY 
Current Price: PKR 50.34
Target Price: PKR 64

Kohat Cement Company (KOHC) – BUY 
Current Price: PKR 85.37
Target Price: PKR 111

Lotte Chemical Pak Ltd. (LOTCHEM) – BUY 
Current Price: PKR 16.81
Target Price: PKR 25.3

Lucky Cement (LUCK) – BUY 
Current Price: PKR 480.91
Target Price: PKR 605.8

Mari Petroleum Ltd. (MARI) – BUY 
Current Price: PKR   1,290.63
Target Price: PKR  1,983.6

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR   209.43
Target Price: PKR 224.73

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 44.53
Target Price: PKR 56.6

Millat Tractors Limited (MTL) – BUY 
Current Price: PKR 897.66
Target Price: PKR 1,017

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 47.40
Target Price: PKR 66.51

Nishat Chunian Limited (NCL) – BUY 
Current Price: PKR 57.40
Target Price: PKR 67.7

Nishat Chunian Power Limited (NCPL) – BUY 
Current Price: PKR 23.80
Target Price: PKR 27.8

Nishat Mills (NML) – BUY 
Current Price: PKR 143.02
Target Price: PKR 158

Nishat Power Limited (NPL) – BUY 
Current Price: PKR 26.01
Target Price: PKR 32.5

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 150.06
Target Price: PKR 190

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 44.78
Target Price: PKR 60

Pakistan Oilfields (POL) – BUY 
Current Price: PKR 470.41
Target Price: PKR 593.0

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 191.39
Target Price: PKR 208

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 246.94
Target Price: PKR 298.00

Sui Northern Gas Pipeline (SNGP) – BUY 
Current Price: PKR 85.91
Target Price: PKR 96.2

United Bank Limited (UBL) – BUY 
Current Price: PKR 156.67
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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