Pakistan Stock Exchange (PSX) Weekly Analysis 1 May, 2016

BUY recommendations are ABL, APL, BAFL, BAHL, DGKC, EFERT, ENGRO, FATIMA, FFBL, FFC, HBL, HCAR, INDU, KEL, LUCK, MCB, NBP, NCPL, NPL, OGDC, PIOC, POL, PPL, PSMC, PSO, PTC and UBL.

Top gainers of last week were: Pak Tobacco Co, Feroz 1888 Mills Ltd, International Steels Ltd, Nishat Mills Limited, Pak.Int.Con.Ter., Packages Limited, Oil and Gas Deve, EFU Life Assur Ltd., Faysal Bank and Habib Bank Ltd.

Top losers of last week were: Indus Dyeing, Arif Habib Corp, Pak Suzuki Motor, Hum Network Ltd, Soneri Bank, Larpir Power Ltd, Nestle Pakistan, P.T.C.L.A, Kot Addu Power Co. and Allied Rental Mod.

Top ten volume leaders: SNGP, TRG, PAEL, BOP, OGDC, KEL, BAFL, JSCL, PIBTL, and FFBL.

The Pakistan Stock Exchange (PSX) market index has finally come out of its consolidation phase closing at an 8‐months high`(also CY16’s high) of 34,719. The benchmark Karachi Stock Exchange (KSE) 100-share Index gaining 979 points, or 2.90 percent, to close the week at 34,719 points. KSE 30-share Index gaining 668 points, or 3.42 percent, to end at 20,206 points.

Average daily volume increased 1% to 242.4mn shares whereas average daily value increased by 17% to Rs11.1bn/US$112.2mn in the outgoing week.

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

  • As the heat from Panama leaks turns down slowly, local equities heaved a sigh of relief with the market breaking the psychological barrier of 34.5k
  • Quarterly results dominated activity at the local bourse during the week
  • Oil in global arena posted a remarkable recovery to close above USD48/barrel due to marginally lower US inventory data further propped up by rumors of Saudi plan to reduce drilling
  • Activity was also seen in index heavyweight stocks like oil & gas exploration, which attracted attention on the back of rise in global oil prices
  • Foreign investors were net sellers of US$12.4mn this week with major selling in Chemicals sector of US$12.3mn. Net buying of US$3.6mn was seen in Food Producers
  • The week opened on a sour note as Finance Minister announced continuation of super tax for eradication of terrorism, taking everyone by surprise
  • In the cement universe like LUCK, MLCF posted earnings which were below street estimates whereas remarkable profitability growth was witnessed in small tiers, POWER and FECTC
  • In the banking sector, spreads contraction kept the results mainly lackluster as banks propped up their bottom line with capital gains. ABL was the only exception managing to keep core income intact along with active bond trading as PAT expanded by 47% Q/Q
  • On the fertilizer front, FFC announced dismal payout along with disappointing earnings which kept the stock under pressure whereas EFERT’s gross margins witnessed a healthy growth despite tough conditions
  • HUBC and NML rallied during the week posting strong top line growth as the former also announced a surprise payout
  • The SECP will introduce the concept of stock split to generate market activity in high priced shares traded at stock exchanges. The Capital Market Development Plan‐2016 (CMDP) issued by the SECP revealed that in case of highly valued shares whose shares have a high market price, the trading activity may get restricted due to inaffordability of lot size for such shares
  • Petrol imports are likely to touch a record high this month, crossing 400,000 tonnes, as consumers are switching to petrol because of lower prices and scant availability of CNG
  • The ECC is likely to direct an additional 91mn cubic feet of gas per day (mmcfd) to Engro Fertilizers and Genco‐II power plant. MPCL had informed the petroleum ministry that it had over 91mmcfd that could be allocated to Engro Fertilizers (60mmcfd) and Genco‐II (31mmcfd). In turn, the petroleum ministry was seeking relevant approval from the ECC
  • Fertilizer companies turned down the GoP’s proposal to bring down prices of urea by PkR200/bag, however they agreed to a cut of PkR60/bag

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY
Current Price: PKR 89.66
Target Price: PKR 135.00 

Attock Petroleum (APL) – BUY
Current Price: PKR 444.5
Target Price: PKR 626.37

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 25.23
Target Price: PKR 32

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 41.96
Target Price: PKR 68

DG Khan Cement (DGKC) – BUY
Current Price: PKR 174.7
Target Price: PKR 237.0

ENGRO Fertilizer Limited (EFERT) – BUY
Current Price: PKR 70
Target Price: PKR 106.49

Engro Corporation (ENGRO) – BUY
Current Price: PKR 312.84
Target Price: PKR 362.00

Fatima Fertilizer (FATIMA) – BUY
Current Price: PKR 30.69
Target Price: PKR 49

Fauji Cement Company Limited (FCCL) – BUY
Current Price: PKR 43.0
Target Price: PKR 50.0

Fauji Fertilizer Bin Qasim (FFBL) – BUY
Current Price: PKR 53.97
Target Price: PKR 60.48

Fauji Fertilizer Company (FFC) – BUY
Current Price: PKR 107.21
Target Price: PKR 124.19

Habib Bank Limited (HBL) – BUY
Current Price: PKR 188.93
Target Price: PKR 249.7

Honda Atlas Cars (HCAR) – BUY
Current Price: PKR 281.91
Target Price: PKR 330.00

Indus Motor (INDU) – BUY
Current Price: PKR 949.07
Target Price: PKR 1109.67

K-Electric (KEL) – BUY
Current Price: PKR 7.2
Target Price: PKR 13.7

Lucky Cement (LUCK) – BUY
Current Price: PKR 550.91
Target Price: PKR 652

MCB Bank Limited (MCB) – BUY
Current Price: PKR 211.53
Target Price: PKR 268

National Bank (NBP) – BUY
Current Price: PKR 55.52
Target Price: PKR 65.00

Nishat Chun Power (NCPL) – BUY
Current Price: PKR 49.31
Target Price: PKR 63

Nishat Power Ltd (NPL) – BUY
Current Price: PKR 50.88
Target Price: PKR 59

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 131.34
Target Price: PKR 160

Pioneer Cement (PIOC) – BUY
Current Price: PKR 98.8
Target Price: PKR 123.0

Pak Oilfields (POL) – BUY
Current Price: PKR 320.4
Target Price: PKR 348

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 146.2
Target Price: PKR 168

Pak Suzuki Motors (PSMC) – BUY
Current Price: PKR 379.99
Target Price: PKR 532

Pakistan State Oil (PSO) – BUY
Current Price: PKR 353.6
Target Price: PKR 456

Pakistan Telecommunications (PTC) – BUY
Current Price: PKR 14.2
Target Price: PKR 21.9

United Bank Ltd (UBL) – BUY
Current Price: PKR 163.94
Target Price: PKR 195.7

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.

Written by: Rana Khurram

Pakistan Stock Exchange (PSX) Weekly Analysis 24 April, 2016

BUY recommendations are ABL, APL, BAFL, BAHL, DGKC, EFERT, ENGRO, FATIMA, FFBL, FFC, HBL, HCAR, INDU, KEL, LUCK, MCB, NBP, NCPL, NPL, OGDC, PIOC, POL, PPL, PSMC, PSO, PTC and UBL.

Top gainers of last week were: Bannu Woollen, Sui North Gas Pipe., Hum Network Ltd, Pak Oilfields, Packages Limited, Pak Petroleum, Rafhan Maize Prod., National Refinery, Feroz 1888 Mills Ltd and Attock Refinery Ltd.

Top losers of last week were: Fauji Fert Bin, J.D.W.Sugar, Punjab Oil, Colgate Palmolive, National Foods, Engro Fertilizer, Indus Dyeing, Pak Services, D.G.K.Cement and Jah.Sidd. Co.

Top ten volume leaders: SNGP, TRG, JSCL, KEL, PAEL, SSGC, PIBTL, HUMNL, FATIMA, OGDC, and FCCL.

The Pakistan Stock Exchange (PSX) market index remain range-bound during the week amid persistent foreign selling. The benchmark Karachi Stock Exchange (KSE) 100-share Index losing -27 points, or - 0.08 percent, to close the week at 33,740 points. KSE 30-share Index gaining -12 points, or - 0.06 percent, to end at 19,538 points.

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

  • The political arena was given a severe jolt when the Army Chief sacked a dozen top ranking military officers on corruption charges setting an example for the ruling elite to follow, that triggered a wave of panic selling at the bourse
  • Week started following the meeting between key OPEC & Non OPEC members who were failed to reach consensus on capping oil output in Doha on Sunday amid a standoff to slash its market share
  • The Panama scandal continued to unleash in the outgoing week keeping the ruling elite under the radar and the market participants on the edge
  • Oil price nose dived at the start of the session where local equities also felt the brunt
  • Foreign direct investment (FDI) rose 15%YoY to US$957mn in 9MFY16 from US$832m
  • The federal government released PkR400.9bn (57.3% of the total budgeted for the current fiscal year)
  • Massive reduction in power tariff by PkR2.78/unit on account of fuel price adjustment for March 2016 following a dip in global crude oil prices
  • Indus Motor Company (INDU) announced results for 3QFY16 in which company reported profit after tax of Rs2.9bn (EPS Rs37.6), a decline of 10% YoY. Company’s sales fell 2.5% YoY to Rs28.3bn as sales of Toyota Fortuner and Hilux declined while those of Corolla remained almost flat. INDU’s gross profit fell 10.2% to Rs4.4bn and it also witnessed a 1.3ppts decline in gross margins to 15.7%
  • Sui Northern Gas Pipelines (SNGPL) has informed through a PSX notice that Oil & Regulatory Authority (OGRA) has allowed the company to include assets being created for transport of Liquefied Natural Gas (LNG) in its revenue calculation
  • Habib Bank (HBL) has received a license to setup a branch in China, the bank informed through a notice on PSX. This makes HBL the first South Asian bank to get this permission. The bank will be establishing operations in Urumqi, largest city in Xinjiang province, which borders Pakistan along Silk Route
  • Pakistan cotton production for the outgoing season (2015‐16) is likely to be missed by 35 % and it is expected at 10.1mn bales against the initial target of 15.49mn bales
  • PTCL has planned to make a massive investment in telecom infrastructure in Gwadar in view of mega development projects of deep sea port and CPEC to provide facilities to international companies investing in this port city
  • CCP serving show cause notices to four dairy manufacturers (EFOODS, Shakarganj Foods Products Limited, Haleeb Foods Limited and Noon Pakistan Limited) on alleged deception through advertising tea whiteners as milk

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY
Current Price: PKR 89.92
Target Price: PKR 135.00 

Attock Petroleum (APL) – BUY
Current Price: PKR 450.00
Target Price: PKR 626.37

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 25.03
Target Price: PKR 32

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 42.01
Target Price: PKR 68

DG Khan Cement (DGKC) – BUY
Current Price: PKR 171.0
Target Price: PKR 237.0

ENGRO Fertilizer Limited (EFERT) – BUY
Current Price: PKR 69.19
Target Price: PKR 106.49

Engro Corporation (ENGRO) – BUY
Current Price: PKR 307.65
Target Price: PKR 362.00

Fatima Fertilizer (FATIMA) – BUY
Current Price: PKR 30.59
Target Price: PKR 49

Fauji Fertilizer Bin Qasim (FFBL) – BUY
Current Price: PKR 50.13
Target Price: PKR 60.48

Fauji Fertilizer Company (FFC) – BUY
Current Price: PKR 108.6
Target Price: PKR 124.19

Habib Bank Limited (HBL) – BUY
Current Price: PKR 174.17
Target Price: PKR 249.7

Honda Atlas Cars (HCAR) – BUY
Current Price: PKR 267.15
Target Price: PKR 330.00

Indus Motor (INDU) – BUY
Current Price: PKR 957.67
Target Price: PKR 1109.67

K-Electric (KEL) – BUY
Current Price: PKR 7.2
Target Price: PKR 13.7

Lucky Cement (LUCK) – BUY
Current Price: PKR 550.22
Target Price: PKR 652

MCB Bank Limited (MCB) – BUY
Current Price: PKR 200.17
Target Price: PKR 268

National Bank (NBP) – BUY
Current Price: PKR 53.99
Target Price: PKR 65.00

Nishat Chun Power (NCPL) – BUY
Current Price: PKR 49.86
Target Price: PKR 63

Nishat Power Ltd (NPL) – BUY
Current Price: PKR 50.37
Target Price: PKR 59

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 119.34
Target Price: PKR 160

Pioneer Cement (PIOC) – BUY
Current Price: PKR 95.0
Target Price: PKR 123.0

Pak Oilfields (POL) – BUY
Current Price: PKR 308.44
Target Price: PKR 348

Pakistan Petroleum (PPL) – BUY Current Price: PKR 139.27
Target Price: PKR 168

Pak Suzuki Motors (PSMC) – BUY
Current Price: PKR 400.78
Target Price: PKR 532

Pakistan State Oil (PSO) – BUY
Current Price: PKR 360.9
Target Price: PKR 456

Pakistan Telecommunications (PTC) – BUY
Current Price: PKR 14.7
Target Price: PKR 21.9

United Bank Ltd (UBL) – BUY
Current Price: PKR 157.93
Target Price: PKR 195.7

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.

Written by: Rana Khurram

Pakistan Stock Exchange (PSX) Weekly Analysis 18 April, 2016

BUY recommendations are ABL, APL, BAFL, BAHL, DGKC, EFERT, ENGRO, FATIMA, FFC, HBL, HCAR, INDU, KEL, LUCK, KAPCO, MCB, MLCF, NCPL, NPL, OGDC, POL, PPL, PSMC, PSO, PTC, and UBL.

Top gainers of last week were: National Refinery, Pak Oilfields, Colgate Palmolive, J.D.W.Sugar, Attock Refinery Ltd., Rafhan Maize Prod., Feroz 1888 Mills Ltd, Soneri Bank, Stand.Chart.Bank and Sui North Gas Pipe.

Top losers of last week were: Pak Tobacco Co, Orix Leasing, Sui South Gas, Larpir Power Ltd, Arif Habib Corp, Shifa International Hospitals, K‐Electric (KESC), National Foods, Pakgen Power Ltd. and Nestle Pakistan.

Top ten volume leaders: TRG, JSCL, PAEL, SNGP, KEL, PIBTL, EFERT, PTC, FCCL, BOP, and SSGC,

The Pakistan Stock Exchange (PSX) market index remain volatile during the outgoing week amid prevailing political noise regarding panama leaks which poses doubts over the future of the current ruling party. Therefore, profit taking was observed at the physiological barrier of 34k where foreigners sold US$1.46mn vs. an inflow of US$27.63mn in the previous week. The benchmark Karachi Stock Exchange (KSE) 100-share Index losing -201 points, or -0.59 percent, to close the week at 33,767 points. KSE 30-share Index gaining -79 points, or -0.40 percent, to end at 19,550 points.

Trading activity declined to 190mn shares/day (down 31%WoW). Further, average traded value slid to US$82.42mn (down 17.5%WoW). As far as FIPI is concerned, foreigners sold US$1.46mn during the week as compared to a massive inflow of US$27.63mn in the past week.

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

  • The panama leaks had its toll on investor sentiments casting dark clouds on the PML‐N’s government
  • SBP has announced the Monetary Policy and keeps interest rate unchanged at 6%
  • Healthy corporate results by oil & gas (POL) and Refinery (ATRL) offset the negative sentiments at the bourse
  • International crude oil prices have also improved resulting in 100bps appreciation in sector’s capitalization during the week
  • Oil rallied Tuesday on a report that Saudi Arabia and Russia, the world’s two biggest producers, have reached a crude output freeze agreement ahead of key Doha talks this weekend
  • Household Goods topped the gainers list on sector level as it rose 11.4% over the week
  • Tobacco and Fixed Line Telecommunication shed the most value as they declined 14.6% and 8.9%, respectively
  • Byco Petroleum (BYCO) has informed through a PSX notice that board of directors of the company have approved a potential merger (by way of amalgamation) of Byco Oil Pakistan Ltd. and Byco Terminals Pakistan Ltd. with and into the company
  • As per news reports, Ministry of Water & Power (MoW&P) is to arrange Rs25bn from commercial banks to inject into power sector through Power Holding Pvt. Ltd. (PHPL). This will be made part of tariff at an appropriate time. MoW&P and Ministry of Finance (MoF) are working on a settlement plan to deal with power sector liabilities; current and accrued dues on account of various subsidies total ~Rs168bn, as per the news report
  • Government is planning to raise Rs100bn in Islamic bonds to fund Neelum Jehlum hydropower plant, country’s fourth largest hydropower plant. It is expected to generate 969MW of electricity and is expected to come online in 2017
  • Car, heavy vehicles sales jump in July-March March cement sales hit record 3.58m tonnes
  • Fauji Foundation has shown interest in purchasing 10% of MARI
  • SBP sells T-bills worth Rs57.57 billion
  • Auto companies exceeded expectations as many companies posted gains over strong car sales. HCAR was the top performer with sales increasing by 16% Y/Y
  • PSMC witnessed steep volumetric dip with sales receding by 30% Y/Y while INDU sales remained flat in March
  • Companies from China’s violence‐prone far western region of Xinjiang signed deals worth about USD 2bn with Pakistan this week during a visit to Pakistan by Xinjiang’s top official, who sought to cement ties with an important security partner
  • OGRA challenges LPG price fixing at Rs900 per cylinder
  • GE has announced a deal with the CMEC supply two 330MW boilers to Engro Powergen Thar (Private) Limited, CMEC’s joint venture for the Thar Block II Power Plant
  • The Nepra approved a refund of 45 paisa/unit in consumers‐end tariff of K‐Electric under quarterly (December 2015 ‐ February 2016) fuel adjustment mechanism
  • Pakistan Customs proposed the FBR to impose five to 20% regulatory duties on a number of importable goods to avert the incidences of mis‐declaration, which cause revenue losses to national exchequer
  • Vitol Dubai Ltd. completed acquisition of 18.1mn or 15% of voting shares of HASCOL as per exchange filing
  • Joint session of parliament passed "The Pakistan International Airlines Corporation (Conversion) Bill" to convert the national flag carrier into a public limited company
  • PM Sharif laid foundation stone of two power plants of 660MW in Thar as the Sindh govt. reached financial close of 660MW Thar Coal Power Project at Thar Block‐II

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY
Current Price: PKR 88.00
Target Price: PKR 135.00 

Attock Petroleum (APL) – BUY
Current Price: PKR 431.6
Target Price: PKR 626.37

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 25.2
Target Price: PKR 32

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 42.30
Target Price: PKR 68

ENGRO Fertilizer Limited (EFERT) – BUY
Current Price: PKR 71.1
Target Price: PKR 118

Engro Corporation (ENGRO) – BUY
Current Price: PKR 311.38
Target Price: PKR 362.00

Fatima Fertilizer (FATIMA) – BUY
Current Price: PKR 32.4
Target Price: PKR 49

Fauji Fertilizer Company (FFC) – BUY
Current Price: PKR 110.8
Target Price: PKR 124.19

Habib Bank Limited (HBL) – BUY
Current Price: PKR 173.1
Target Price: PKR 249.7

Honda Atlas Cars (HCAR) – BUY
Current Price: PKR 264.61
Target Price: PKR 330.00

Indus Motor (INDU) – BUY
Current Price: PKR 927.39
Target Price: PKR 1305

Kot Addu Power Co (KAPCO) – BUY
Current Price: PKR 77.34
Target Price: PKR 94

K-Electric (KEL) – BUY
Current Price: PKR 7.2
Target Price: PKR 13.7

Lucky Cement (LUCK) – BUY
Current Price: PKR 569.4
Target Price: PKR 652

MCB Bank Limited (MCB) – BUY
Current Price: PKR 203.3
Target Price: PKR 268

Nishat Chun Power (NCPL) – BUY
Current Price: PKR 49.52
Target Price: PKR 63

Nishat Power Ltd (NPL) – BUY
Current Price: PKR 49.80
Target Price: PKR 59

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 117.7
Target Price: PKR 160

Pioneer Cement (PIOC) – BUY
Current Price: PKR 99.4
Target Price: PKR 123.0

Pak Oilfields (POL) – BUY
Current Price: PKR 264.5
Target Price: PKR 348

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 129.6
Target Price: PKR 168

Pak Suzuki Motors (PSMC) – BUY
Current Price: PKR 415.49
Target Price: PKR 532

Pakistan State Oil (PSO) – BUY
Current Price: PKR 362.2
Target Price: PKR 456

Pakistan Telecommunications (PTC) – BUY
Current Price: PKR 16.2
Target Price: PKR 21.9

United Bank Ltd (UBL) – BUY
Current Price: PKR 151.9
Target Price: PKR 195.7

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.

Written by: Rana Khurram

Pakistan Stock Exchange (PSX) Weekly Analysis 10 April, 2016

BUY recommendations are ABL, APL, BAFL, BAHL, DGKC, EFERT, ENGRO, FATIMA, FFC, HBL, HCAR, INDU, KEL, LUCK, KAPCO, MCB, MLCF, NBP, NCPL, NPL, OGDC, POL, PPL, PSMC, PSO, PTC, and UBL.

Top gainers of last week were: Hum Network Ltd, Cherat Packaging, Nestle Pakistan, TRG Pakistan Ltd, P.T.C.L.A, Ibrahim Fibres, Jah.Sidd. Co., Fauji Fert Bin, Kohinoor Textile and International Steels Ltd.

Top losers of last week were: Muree Brewery Co Ltd, Indus Dyeing, National Foods, Allied Bank, Ferozsons (Lab), Pakgen Power Ltd., J.D.W.Sugar, B.O.Punjab, Shell Pakistan and Attock Refinery Ltd.

Top ten volume leaders: KEL, TRG, JSCL, SNGP, PIBTL, PTC, BOP, PAEL, FFBL, FCCL, and SSGC,

The Pakistan Stock Exchange (PSX) market index flirted with 34k level as turnover crossed seven month high averaging 275mn during the week as investors look to build positions to gain from upcoming quarterly result rally. The benchmark Karachi Stock Exchange (KSE) 100-share Index losing 518 points, or 1.55 percent, to close the week at 33,968 points. KSE 30-share Index gaining 277 points, or 1.43 percent, to end at 19,629 points.

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

  • Cements and fertilizers were the apple of the eye for the market participants as foreign interest in cements (DGKC & MLCF) on bullish view over lined up infrastructure projects in the country rallied the sector however; profit booking was witnessed at the end of the week
  • FFBL on announcement of commencement of meat operations sky rocketed to recent high closing of PKR55.73 but it too succumbed to profit booking at the end of the week
  • PTC remained at the heart of rumors including removal of termination charges and proposal of fixing floor prices for cellular operators (beneficial to its subsidiary Ufone)
  • PTA took notice of disparaging difference between on‐net and off‐net tariffs of cellular operators, which gives rise to grey traffic, in the authority's opinion
  • Gas tariffs to be raised from July 1
  • PSMC has increased prices of locally produced bikes by an average PKR5,000. The company has also pushed up the price of WagonR car by PKR10,000
  • Customs to raise import prices of tyres, tubes
  • WTO cuts 2016 global trade forecast to 2.8%
  • FM Dar announced that Pakistan is not in need of an IMF program now, but erred that the country still needs to consolidate its economic gains made over the last two years
  • SSGC and SNGP on the directives of MoPNR, announced the litiing of gas moratorium placed on high‐rise residential buildings, and to start giving gas connections
  • Foreigners remained net buyers during the week, mopping up shares worth USD27.63mn worth of shares versus USD4.62mn in last week, with USD28mn of inflows attributed to acquisition of 15% shares of HASCOL by Vitol

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY
Current Price: PKR 88.00
Target Price: PKR 135.00 

Attock Petroleum (APL) – BUY
Current Price: PKR 429.99
Target Price: PKR 626.37

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 25.50
Target Price: PKR 32

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 42.05
Target Price: PKR 68

DG Khan Cement (DGKC) – BUY
Current Price: PKR 184.0
Target Price: PKR 237

ENGRO Fertilizer Limited (EFERT) – BUY
Current Price: PKR 72.41
Target Price: PKR 118

Engro Corporation (ENGRO) – BUY
Current Price: PKR 319
Target Price: PKR 362.00

Fatima Fertilizer (FATIMA) – BUY
Current Price: PKR 32.98
Target Price: PKR 49

Fauji Cement (FCCL) – BUY
Current Price: PKR 44.7
Target Price: PKR 50

Fauji Fertilizer Bin Qasim (FFBL) – BUY
Current Price: PKR 55.1
Target Price: PKR 71.9

Fauji Fertilizer Company (FFC) – BUY
Current Price: PKR 109.54
Target Price: PKR 124.19

Habib Bank Limited (HBL) – BUY
Current Price: PKR 174.60
Target Price: PKR 249.7

Honda Atlas Cars (HCAR) – BUY
Current Price: PKR 261.32
Target Price: PKR 330.00

Indus Motor (INDU) – BUY
Current Price: PKR 940.02
Target Price: PKR 1305

Kot Addu Power Co (KAPCO) – BUY
Current Price: PKR 77.99
Target Price: PKR 94

K-Electric (KEL) – BUY
Current Price: PKR 7.6
Target Price: PKR 13.7

Lucky Cement (LUCK) – BUY
Current Price: PKR 566.51
Target Price: PKR 652

MCB Bank Limited (MCB) – BUY
Current Price: PKR 205.21
Target Price: PKR 268

National Bank (NBP) – BUY
Current Price: PKR 53.07
Target Price: PKR 65.00

Nishat Chun Power (NCPL) – BUY
Current Price: PKR 49.72
Target Price: PKR 63

Nishat Power Ltd (NPL) – BUY
Current Price: PKR 50.05
Target Price: PKR 59

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 116.71
Target Price: PKR 160

Pioneer Cement (PIOC) – BUY
Current Price: PKR 104.3
Target Price: PKR 123.0

Pak Oilfields (POL) – BUY
Current Price: PKR 260.53
Target Price: PKR 348

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 128.92
Target Price: PKR 168

Pak Suzuki Motors (PSMC) – BUY
Current Price: PKR 419.70
Target Price: PKR 532

Pakistan State Oil (PSO) – BUY
Current Price: PKR 364.7
Target Price: PKR 456

Pakistan Telecommunications (PTC) – BUY
Current Price: PKR 16.8
Target Price: PKR 21.9

United Bank Ltd (UBL) – BUY
Current Price: PKR 151.46
Target Price: PKR 195.7

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.

Written by: Rana Khurram

Pakistan Stock Exchange (PSX) Weekly Analysis 3 April, 2016

BUY recommendations are ABL, APL, BAFL, BAHL, DGKC, EFERT, ENGRO, FATIMA, FFC, HBL, HCAR, INDU, KEL, LUCK, KAPCO, MCB, NBP, NCPL, NML, NPL, OGDC, POL, PPL, PSMC, PSO, PTC, and UBL.

Top gainers of last week were: National Foods, Millat Tractors, Punjab Oil, TRG Pakistan Ltd, Jah.Sidd. Co., Allied Bank, Pak Tobacco Co, Ferozsons (Lab), Honda Atlas Cars and Attock Refinery Ltd.

Top losers of last week were: Rafhan Maize Prod., Associated Services Limited, Muree Brewery Co Ltd, Ibrahim Fibres, EFU Life Assur Ltd., Soneri Bank, Pak Elektron, Habib Bank Ltd, EFU General Ins and GlaxoSmithKline Pak.

Top ten volume leaders: TRG, KEL, SNGP, JSCL, PAEL, PIBTL, FCCL, SSGC, HBL, MLCF and FATIMA.

The Pakistan Stock Exchange (PSX) market index regained some momentum after the KSE‐100 index crossing 33k pts level during the week to close at 33,450pts, up 1.74%WoW despite volatility from global crude trends. The benchmark Karachi Stock Exchange (KSE) 100-share Index losing 573 points, or 1.74 percent, to close the week at 33,450 points. KSE 30-share Index gaining 213 points, or 1.11 percent, to end at 19,352 points.

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

  • The market extended its dull momentum into the earlier part of the week, with lower volumes as the negative vibe emanating from the Lahore bomb blast kept participants at bay
  • Escalating political tension on the back of Islamabad sit‐in kept its strong grip on sentiments
  • Foreigners were net sellers of US$9.6mn this week. Net selling was seen in Banks and Chemicals of US$15.6 and US$2.8, respectively. Cement sector continued to attract foreign interest as net buying of US$4.3mn was witnessed in the same
  • According to a PSX notice, Bestway Cement (BWCL) will be holding a board meeting to consider and pass a resolution to proceed with scheme of amalgamation of Pakcem Ltd (PAKCEM) with and into BWCL. BWCL has 88% shareholding in PAKCEM
  • Federal Board of Revenue (FBR) collected Rs286.8bn worth of taxes in March 2016, an increase of 24.9% YoY primarily due to additional duties imposed on imports of luxury items and sales tax on oil products
  • According to news reports citing an FBR official, shortfall of Rs40bn in 1QFY16 has mostly been recovered in the last couple of months and will be completely recovered in April 2016. target of Rs3.1tn for FY16 with a budget deficit of 4.3% of GDP; Rs1.8tn collected in 8MFY16 period
  • MARI announced crude oil discovery at exploratory well Halini Deep‐1 in Karak block
  • OGRA determined price of the LNG delivered on ex‐ship (DES) basis at US$8.99/MMBTU exclusive GST and allowed increase in PSO margin to 2.5% on DES price from the previous level of 1.8%
  • CDWP approved PkR218.2bn worth of development projects including PkR129.7bn worth of motorway construction from Halka‐Burhan on M‐1 to DI Khan as part of CPEC
  • IMF's Executive Board approved disbursement of US$502.6mn after the completion of the tenth review under the EFF arrangement
  • MSCI released its reclassification proposal with regard to migration of Pakistan index from frontier to emerging markets, where formal is expected to take place in May’17
  • Government of Pakistan increased the price of petrol and HSD by PkR3.09/ltr and PkR1.40/ltr to PkR64.27/ltr and PkR72.52/ltr respectively
  • The results of GLAXO failed to excite market participants as a large one‐time gain propelled the bottom‐line
  • PAEL was seen losing steam to selling pressure as it skipped a dividend payout and reported sub‐par results
  • Nepra imposed PKR10mn fine on KEL for its failure to provide uninterrupted electric power services to its consumers and for deliberately under‐utilizing its available generation capacity

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY
Current Price: PKR 92.00
Target Price: PKR 135.00 

Attock Petroleum (APL) – BUY
Current Price: PKR 429.5
Target Price: PKR 626.37

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 24.92
Target Price: PKR 32

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 40.80
Target Price: PKR 68

DG Khan Cement (DGKC) – BUY
Current Price: PKR 175.9
Target Price: PKR 237

ENGRO Fertilizer Limited (EFERT) – BUY
Current Price: PKR 70.3
Target Price: PKR 118

Engro Corporation (ENGRO) – BUY
Current Price: PKR 319.77
Target Price: PKR 362.00

Fatima Fertilizer (FATIMA) – BUY
Current Price: PKR 32.9
Target Price: PKR 49

Fauji Fertilizer Company (FFC) – BUY
Current Price: PKR 107.4
Target Price: PKR 124.19

Habib Bank Limited (HBL) – BUY
Current Price: PKR 173.3
Target Price: PKR 249.7

Honda Atlas Cars (HCAR) – BUY
Current Price: PKR 252.08
Target Price: PKR 330.00

Indus Motor (INDU) – BUY
Current Price: PKR 950.4
Target Price: PKR 1305

K-Electric (KEL) – BUY
Current Price: PKR 7.1
Target Price: PKR 13.7

Lucky Cement (LUCK) – BUY
Current Price: PKR 546.4
Target Price: PKR 652

Kot Addu Power Co (KAPCO) – BUY
Current Price: PKR 77.57
Target Price: PKR 94

MCB Bank Limited (MCB) – BUY
Current Price: PKR 207.19
Target Price: PKR 268

National Bank (NBP) – BUY
Current Price: PKR 51.93
Target Price: PKR 65.00

Nishat Chun Power (NCPL) – BUY
Current Price: PKR 49.67
Target Price: PKR 63

Nishat Mills (NML) – BUY
Current Price: PKR 95.8
Target Price: PKR 129.2

Nishat Power Ltd (NPL) – BUY
Current Price: PKR 50.05
Target Price: PKR 59

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 114.6
Target Price: PKR 160

Pak Oilfields (POL) – BUY
Current Price: PKR 257.99
Target Price: PKR 348

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 129.0
Target Price: PKR 168

Pak Suzuki Motors (PSMC) – BUY
Current Price: PKR 417.4
Target Price: PKR 532

Pakistan State Oil (PSO) – BUY
Current Price: PKR 354.4
Target Price: PKR 456

Pakistan Telecommunications (PTC) – BUY
Current Price: PKR 15.4
Target Price: PKR 21.9

United Bank Ltd (UBL) – BUY
Current Price: PKR 152.0
Target Price: PKR 195.7

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.

Written by: Rana Khurram