Pakistan Stock Exchange (PSX) Weekly Analysis 30 May, 2016

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

Top gainers of last week were: Feroz 1888 Mills Ltd, Pak Services, Hascol Petroleum Ltd, Service Indus, Pak Suzuki Motor, Attock Refinery Ltd., Nestle Pakistan, Rafhan Maize Prod., Pakgen Power Ltd. and National Refinery.

Top losers of last week were: Bannu Woollen, MCB Bank Ltd, Ibrahim Fibres, Jah.Sidd. Co., Hum Network Ltd, Pak Tobacco Co, Meezan Bank, Associated Services Limited, Muree Brewery Co Ltd and B.O.Punjab.

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

The Pakistan Stock Exchange (PSX) market index witnessed a topsy-turvy ride during the week as the benchmark KSE-100 index fell sharply in the opening couple of days only to post a strong recovery towards the end of the week, recording an overall gain of 282 points (0.9%) to close at 31,294. The benchmark Karachi Stock Exchange (KSE) 100-share Index closed on 36,694 points, while Karachi Stock Exchange (KSE) 30-share Index closed on 21,243 points

Average daily volumes were up 11.5% and stood at to 138.2 million shares traded per day, while average daily values fell slightly by 5.8% and were recorded at Rs6.23 billion per day. The Pakistan Stock Exchange’s market capitalisation stood at Rs6.58 trillion ($62.9 billion) at the end of the week.

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

  • Volatility in global crude oil prices and negativity surrounding particular sectors kept the market on edge, but it was value buying in blue-chip companies towards the end of the week, which led to the KSE-100 ending the week in the green
  • Oil prices continued to play a major role at the bourse as crude prices steadily recovered throughout the week, coinciding with the positivity at the bourse. The price of Brent crude crossed $35 per in the latter part of the week and resulted in decent gains for the oil and gas sector
  • The cement sector also benefitted from the late rally, but could only manage to recover its earlier losses as persistent rumours of a price war and an average result announcement by Lucky Cement tore through the sector in the opening few days
  • Foreigners were again net sellers at the bourse and offloaded net equity worth $4.82 million during the week, down from the $13.2 million net selling in the previous week
  • The political arena remained muted as the joint committee formed to decide the TOR’s for investigation on the Panama‐Gate scandal held its round of talks which are yet to bear fruit
  • The SBP’s surprise decision to slash DR by 25bps caught many wrong‐footed in the financial sector stocks as banking plays bled value in the earlier part of the week only to see late value buying that helped pare losses seen earlier
  • The fertilizer sector got a much needed boost first on account of strong rumors of a likely removal of both GIDC and GST from the sector
  • The week saw KEL outrun its peers in the sector as a prominent foreign fund was reported to have started building fresh positions, while chatter of Abraaj selling some of its stake to a Chinese buyer kept the scrip on an ascent
  • Local E&P names shrugged off this move in prices while POL embarked on a steamy advance as expectations of a higher dividend kept the stock high on the gainers list
  • PSMC raked in fresh gains on anticipation of the Punjab government likely to announce another Taxi scheme in the upcoming budget
  • Power generation at peak hours rose by more than 26.5% to 16,044MW in May 2016 as compared to 12,671MW in May 2013 due to which electricity is being supplied as per announced schedule
  • GoP will begin the marketing process next month to sell a 49% stake in PIA and plans to list shares in several power utility firms this year, privatization minister
  • Nepra approves 12.2 paisas/kwh reduction for KEL consumers
  • PTA has approved the merger of Mobilink and Warid Telecom (Private) Limited. This is yet another milestone in the regulatory process and follows the approval granted in March, 2016 by the CCP
  • MCB said to be in preliminary non‐binding discussion with Fullerton Financial Holdings Pte Ltd (FFH) for a possible merger with NIB
  • GoP has decided to increase PSDP outlay by 11% for FY17 to PkR1.675trn from current year’s allocation of PkR1.514trn
  • GoP likely to increase the tax on dividend income to 20% for non‐filers while 15% tax on dividend income for return filers and it may also start charging advance tax on the alternate corporate tax
  • The current subsidy on DAP to the tune of Rs20bn (PkR500/bag) shared on a 50‐50 basis by the federal and provincial governments is likely to continue in the next fiscal year with Ministry of Food proposing to remove the GST on DAP and other fertilizers

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY
Current Price: PKR 85.94
Target Price: PKR 135.00 

Attock Petroleum (APL) – BUY
Current Price: PKR 429.06
Target Price: PKR 626.37

Amreli Steels Ltd. (ASTL) – BUY
Current Price: PKR 52.0
Target Price: PKR 83.0

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 24.79
Target Price: PKR 32

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 41.40
Target Price: PKR 68

DG Khan Cement (DGKC) – BUY
Current Price: PKR 177.9
Target Price: PKR 237.0

ENGRO Fertilizer Limited (EFERT) – BUY
Current Price: PKR 70.69
Target Price: PKR 106.49

Engro Corporation (ENGRO) – BUY
Current Price: PKR 337
Target Price: PKR 362.00

Fatima Fertilizer (FATIMA) – BUY
Current Price: PKR 31.69
Target Price: PKR 49

Fauji Cement Company Limited (FCCL) – BUY
Current Price: PKR 44
Target Price: PKR 50.0

Fauji Fertilizer Bin Qasim (FFBL) – BUY
Current Price: PKR 56
Target Price: PKR 60.48

Fauji Fertilizer Company (FFC) – BUY
Current Price: PKR 117
Target Price: PKR 124.19

Hascol Petroleum (HASCOL) – BUY
Current Price: PKR 165.2
Target Price: PKR 200.8

Habib Bank Limited (HBL) – BUY
Current Price: PKR 180.06
Target Price: PKR 249.7

Indus Motor (INDU) – BUY
Current Price: PKR 926.28
Target Price: PKR 1109.67

K-Electric (KEL) – BUY
Current Price: PKR 7.8
Target Price: PKR 13.7

Lucky Cement (LUCK) – BUY
Current Price: PKR 598.9
Target Price: PKR 652

MCB Bank Limited (MCB) – BUY
Current Price: PKR 219.79
Target Price: PKR 268

National Bank (NBP) – BUY
Current Price: PKR 54.15
Target Price: PKR 65.00

Nishat Chun Power (NCPL) – BUY
Current Price: PKR 49.95
Target Price: PKR 63

Nishat Power Ltd (NPL) – BUY
Current Price: PKR 50.09
Target Price: PKR 59

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 142.61
Target Price: PKR 160

Pioneer Cement (PIOC) – BUY
Current Price: PKR 98.1
Target Price: PKR 123.0

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 155.4
Target Price: PKR 193.8

Pak Suzuki Motors (PSMC) – BUY
Current Price: PKR 412.6
Target Price: PKR 532

Pakistan State Oil (PSO) – BUY
Current Price: PKR 382
Target Price: PKR 456

Pakistan Telecommunications (PTC) – BUY
Current Price: PKR 15.8
Target Price: PKR 21.9

United Bank Ltd (UBL) – BUY
Current Price: PKR 168.61
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

Companies Results 18-24 May 2016

AL-ABBAS SUGAR (AABS)
Profit/Loss (million): 22.498 
Bonus/Div: NIL

SHAHMURAD SUGAR (SHSML)
Profit/Loss (million): 14.358 
Bonus/Div: NIL

J.D.W Sugar (JDWS)
Profit/Loss (million): 997.481 
Bonus/Div: 20.00%

Sind Abadgar Sugar (SASML)
Profit/Loss (million): (45.228)
Bonus/Div: NIL

Thal Industries (TICL)
Profit/Loss (million): 113.626 
Bonus/Div: NIL

HUSEIN SUGAR (HUSS)
Profit/Loss (million): 165.942 
Bonus/Div: NIL

Pakistan Stock Exchange (PSX) Weekly Analysis 22 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, PPL, PSMC, PSO, PTC and UBL.

Top gainers of last week were: Feroz 1888 Mills Ltd, Ferozsons (Lab), Pak Int.Bulk Ter, Bannu Woollen, Pak Petroleum, Bata (Pak) Ltd., K‐Electric, P.T.C.L.A, Hascol Petroleum Ltd and MCB Bank Ltd.

Top losers of last week were: Pak.Int.Con.Ter., Pak Tobacco Co, Punjab Oil, Indus Dyeing, National Bank of Pak, Thal Limited, Cherat Cement, Habib Metro Bank, Bank Al‐Falah and Indus Motor.

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

The Pakistan Stock Exchange (PSX) market index index recorded impressive gains during the week ended on May 20, notching up a rise of 1.6% and also reaching an all-time intra-day high of 36,848 points on Friday before settling slightly lower. The benchmark Karachi Stock Exchange (KSE) 100-share Index gaining 571.01 points, to close the week at 36,693.50  points.

Activity during the week improved as average daily volumes surged to 325 million shares, up 10.5% week-on-week, while average daily values rose 1.4% week-on-week to Rs11.4 million. Foreigners, though, remained net sellers of $7 million during the week.

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

  • State Bank of Pakistan has announced Monetary Policy, Interest Rate reduced 0.25%
  • One of the main reasons behind the positive sentiments was the possible upgrade of Pakistan’s bourse in the MSCI from the frontier to emerging market in June 2016
  • Additionally, upward movement of international oil prices also helped the market pick up momentum
  • The political uncertainty regarding the government’s fate after Panama leaks subsided and the lower political pressure also helped the index reach new highs
  • Gains in the index were primarily led by mid-tier stocks as Fauji Meat (+19.8%) and Pakistan International Bulk Terminal (+12.7%) cumulatively contributed 177.3 points, whereas blue-chip stocks (MCB Bank, Pakistan Petroleum and Kapco) added 241 points to the index
  • On the other hand, the banking sector mostly contributed to the decline with Habib Bank, National Bank, United Bank and Bank AL Habib cumulatively erasing 49 points from the index
  • Foreign institutional portfolio investment recorded an outflow of $6.98 million versus outflow of $12.71 million last week
  • On the macro side, the latest data of the State Bank of Pakistan (SBP) revealed that foreign direct investment crossed $1 billion during 10MFY16, an increase of 5% year-on-year. China was the biggest contributor followed by Hong Kong and Italy
  • On the other hand, total liquid foreign exchange reserves rose to an all-time high of $21.32 billion as State Bank holdings increased to $16.52 billion due to export and remittance receipts
  • This week, the telecom sector came into the limelight, as news emerged that the sector was likely to get major incentives in the upcoming budget for 2016-17, including extension in the tax holiday for telecom exports for three years and tax reduction for IT services companies from 8% to 2%
  • PPL rallied further as Sui field lease was renewed for ten years along with a small hydrocarbon discovery from Kotri block
  • PIBTL gained 12.69% during the week as euphoria over inclusion in MSCI small cap index persisted
  • HCAR announced its FY16 earnings which were higher than the street estimates along with better cash dividend which triggered short term profit booking
  • Banks particularly MCB was the top pick of participants as they build up their positions before decision over emerging market status
  • KAPCO was on investor’s radar as well as talks of its PPA renewal and coal conversion made rounds of the market
  • Excitement was visible in ENGRO as well as rumor mill suggests finalization of its stake sale in EFOODS by the end of the month
  • PSO seeks PKR190bn payment plan from government
  • Government of Pakistan has decided to slap a new tax on the construction of housing societies in the next budget for the FY‐17 in a bid to generate PKR10 to PKR15bn
  • A leading tetra milk producer has increased the price by PKR5‐PKR10 ahead of the budget and Ramazan
  • Approval by Baluchistan cabinet to lease Sui Gas Field to PPL for next 10 years
  • 4.7% YoY growth in Large Scale Manufacturing during 9MFY16
  • FY17 revenue target set Rs3.6trn for FBR, compared to a target of Rs3.1trn in FY16, 17% YoY higher
  • Chinese offer to finance whole $2b LNG project
  • Government auctions Rs229bn T-bills
  • Tariq Glass Industries Limited - Downward Revision in Custom Duty to Marginally Impact Local Manufacturers
  • Pioneer Cement Company Limited - Potential expansion may curtail payout
  • Pakistan OMC Sector - Revision in Pricing Regime Yet to be Fully Appreciated
  • Pak Elektron Limited - Outlook Remains Sanguine

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY
Current Price: PKR 87.77
Target Price: PKR 135.00 

Attock Petroleum (APL) – BUY
Current Price: PKR 439.64
Target Price: PKR 626.37

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 25.01
Target Price: PKR 32

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 42.43
Target Price: PKR 68

DG Khan Cement (DGKC) – BUY
Current Price: PKR 179.0
Target Price: PKR 237.0

ENGRO Fertilizer Limited (EFERT) – BUY
Current Price: PKR 70.91
Target Price: PKR 106.49

Engro Corporation (ENGRO) – BUY
Current Price: PKR 330.9
Target Price: PKR 362.00

Fatima Fertilizer (FATIMA) – BUY
Current Price: PKR 31.69
Target Price: PKR 49

Fauji Cement Company Limited (FCCL) – BUY
Current Price: PKR 42.7
Target Price: PKR 50.0

Fauji Fertilizer Bin Qasim (FFBL) – BUY
Current Price: PKR 55.56
Target Price: PKR 60.48

Fauji Fertilizer Company (FFC) – BUY
Current Price: PKR 115.51
Target Price: PKR 124.19

Hascol Petroleum (HASCOL) – BUY
Current Price: PKR 153.1
Target Price: PKR 200.8

Habib Bank Limited (HBL) – BUY
Current Price: PKR 186.41
Target Price: PKR 249.7

Honda Atlas Cars (HCAR) – BUY
Current Price: PKR 294.40
Target Price: PKR 330.00

Indus Motor (INDU) – BUY
Current Price: PKR 935.24
Target Price: PKR 1109.67

K-Electric (KEL) – BUY
Current Price: PKR 7.7
Target Price: PKR 13.7

Lucky Cement (LUCK) – BUY
Current Price: PKR 602.4
Target Price: PKR 652

MCB Bank Limited (MCB) – BUY
Current Price: PKR 240.00
Target Price: PKR 268

National Bank (NBP) – BUY
Current Price: PKR 54.12
Target Price: PKR 65.00

Nishat Chun Power (NCPL) – BUY
Current Price: PKR 49.99
Target Price: PKR 63

Nishat Power Ltd (NPL) – BUY
Current Price: PKR 50.45
Target Price: PKR 59

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 144.68
Target Price: PKR 160

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

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 154.81
Target Price: PKR 168

Pak Suzuki Motors (PSMC) – BUY
Current Price: PKR 387.32
Target Price: PKR 532

Pakistan State Oil (PSO) – BUY
Current Price: PKR 381.6
Target Price: PKR 456

Pakistan Telecommunications (PTC) – BUY
Current Price: PKR 15.9
Target Price: PKR 21.9

United Bank Ltd (UBL) – BUY
Current Price: PKR 171.01
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

Companies Results May 2016

HONDA ATLAS CARS (HCAR)
Profit/Loss (million): 1132.404
Bonus/Div: 70%

SIEMENS ENGINEERING (SIEM)
Profit/Loss (million): (67.701)
Bonus/Div: NIL

BANK OF PUNJAB (BOP)
Profit/Loss (million): 1457.686
Bonus/Div: NIL

BESTWAY CEMENT (BWCL)
Profit/Loss (million): 2705.412 
Bonus/Div: 25%

PAKCEM LIMITED FORMELY LAFARAGE PAKISTAN CE (PAKCEM)
Profit/Loss (million): 553.322 
Bonus/Div: NIL

CLIMAX ENG. CO. LTD (Formely CLIM) (CECL)
Profit/Loss (million): (4.537)
Bonus/Div: NIL

PAKISTAN GENERAL INSURANCE (PKGI)
Profit/Loss (million): 13.061 
Bonus/Div: NIL

PUNJAB OIL (POML)
Profit/Loss (million): 80.830 
Bonus/Div: NIL

AMTEX LTD (AMTEX)
Profit/Loss (million): (196.472)
Bonus/Div: NIL

ZAHIDJEE TEX (ZAHID)
Profit/Loss (million): 103.827 
Bonus/Div: NIL

KOHINOOR POWER CO (KOHP)
Profit/Loss (million): (1.826)
Bonus/Div: NIL

KOHINOOR INDUSTRIES (KOIL)
Profit/Loss (million): 3.548 
Bonus/Div: NIL

AGRITECH LTD (AGL)
Profit/Loss (million): 508.125 
Bonus/Div: NIL

FLYING CEMENT LIMITED (FLYNG)
Profit/Loss (million): 20.121 
Bonus/Div: NIL

QUICE FOOD INDUSTRIES LTD. (QUICE)
Profit/Loss (million): 6.287 
Bonus/Div: NIL

TRG PAKISTAN LTD (TRG)
Profit/Loss (million): 46.067 
Bonus/Div: NIL

TATA TEX (TATM)
Profit/Loss (million): (79.505)
Bonus/Div: NIL

GLAMOUR TEX (GLAT)
Profit/Loss (million): (21.862)
Bonus/Div: NIL

HALLMARK INSURANCE LIMITED (HMICL)
Profit/Loss (million): 0.817 
Bonus/Div: NIL

PICIC GROWTH FUND (PGF)
Profit/Loss (million): 18.061
Bonus/Div: NIL

PAKISTAN SERVICES LIMITED (PSEL)
Profit/Loss (million): 660.706 
Bonus/Div: NIL

RELIANCE INSURANCE (RICL)
Profit/Loss (million): (3.376)
Bonus/Div: NIL

PICIC INVESTMENT FUND (PIF)
Profit/Loss (million): 9.354
Bonus/Div: NIL

KOHINOOR SPINNING (KOSM)
Profit/Loss (million): (209.894)
Bonus/Div: NIL

PAKISTAN STATE OIL (PSO)
Profit/Loss (million): (2131.826)
Bonus/Div: NIL

KOHAT CEMENT (KOHC)
Profit/Loss (million): 1225.505 
Bonus/Div: NIL

SHEILD CORPORATION LIMITED (SCL)
Profit/Loss (million): 12.026 
Bonus/Div: NIL

AYESHA TEXTILE (NEW SYMBOL) (AYTM)
Profit/Loss (million): (18.041)
Bonus/Div: NIL

ATLAS HONDA (ATLH)
Profit/Loss (million): 900.640 
Bonus/Div: 1.45

DAWOOD HERCULES (DAWH)
Profit/Loss (million): 448.950 
Bonus/Div: 0.25

Silk Bank Ltd ( Saudi Pak Commercial Bank) (SILK)
Profit/Loss (million): 201.804 
Bonus/Div: NIL

PREMIER INSURANCE LIMITED (PINL)
Profit/Loss (million): 8.806 
Bonus/Div: NIL

TARIQ GLASS IND. (TGL)
Profit/Loss (million): 183.351 
Bonus/Div: NIL

Arif Habib Corporation Limited (Formely AHSL) (AHCL)
Profit/Loss (million): (2196.190)
Bonus/Div: NIL

Hum Network Ltd (Formally Eye Television Net. Ltd) (HUMNL)
Profit/Loss (million): 165.919 
Bonus/Div: NIL

SINGER PAKISTAN (SING)
Profit/Loss (million): (49.383)
Bonus/Div: NIL

PAKISTAN REINSURANCE (PAKRI)
Profit/Loss (million): 357.819 
Bonus/Div: NIL

GENERAL TYRE & RUBBER (GTYR)
Profit/Loss (million): 350.509 
Bonus/Div: NIL

JAHANGER SIDDIQUI & CO (JSCL)
Profit/Loss (million): 404.774 
Bonus/Div: NIL

NETSOL TECHNOLOGIES LIMITED (NETSOL)
Profit/Loss (million): (60.937)
Bonus/Div: NIL

NISHAT CHUNIAN POWER LTD (NCPL)
Profit/Loss (million): 634.044 
Bonus/Div: 17.50%

PAK SUZUKI MOTOR COMPANY LIMITED (PSMC)
Profit/Loss (million): 947.643
Bonus/Div: NIL

NATIONAL BANK OF PAKISTAN LTD (NBP)
Profit/Loss (million): 4036.825
Bonus/Div: NIL

BYCO PETROLEUM PAKISTAN (BOSICAR PAKISTAN) (BYCO)
Profit/Loss (million): 440.223
Bonus/Div: NIL

KHYBER TOBACCO COMPANY LTD (KHTC)
Profit/Loss (million): 35.947
Bonus/Div: NIL

AZGARD NINE LIMITED FORMLY (LEGLER NAFEES DE (ANL)
Profit/Loss (million): (165.546)
Bonus/Div: NIL

FATIMA FERTILIZER COMPANY LTD. (FATIMA)
Profit/Loss (million): 1125.112
Bonus/Div: NIL

ARIF HABIB LIMITED (AHL)
Profit/Loss (million): 24.437
Bonus/Div: NIL

SHEZAN INTERNATIONAL (SHEZ)
Profit/Loss (million): 19.348
Bonus/Div: NIL

BANK ALFALAH LIMITED (BAFL)
Profit/Loss (million): 2466.691
Bonus/Div: NIL

SAMBA BANK LTD (FORMALY CRECENT COMMERCIAL (SBL)
Profit/Loss (million): 178.29
Bonus/Div: NIL

TPL TRAKKER (TPL)
Profit/Loss (million): 12.119
Bonus/Div: NIL

ENGRO CORPORATION LTD. (ENGRO)
Profit/Loss (million): 3470.012
Bonus/Div: 50.00%

FECTO CEMENT (FECTC)
Profit/Loss (million): 229.837
Bonus/Div: NIL

MILLAT TRACTORS LTD (MTL)
Profit/Loss (million): 482.023
Bonus/Div: NIL

COLGATE PALMOLIVES (COLG)
Profit/Loss (million): 746.377
Bonus/Div: NIL

FAYSAL BANK (FABL)
Profit/Loss (million): 1357.366
Bonus/Div: NIL

Pakistan Stock Exchange (PSX) Weekly Analysis 16 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, PPL, PSMC, PSO, PTC and UBL.

Top gainers of last week were: Feroz 1888 Mills Ltd, Bannu Woollen, Associated Services Limited, Shifa International Hospitals, Thal Limited, PICIC Growth, TRG Pakistan Ltd, ICI Pakistan, Sui North Gas Pipe. and Hub Power.

Top losers of last week were: Pak Tobacco Co, Rafhan Maize Prod., B.O.Punjab, Ibrahim Fibres, EFU Life Assur Ltd., Indus Dyeing, Nestle Pakistan, Faysal Bank, International Steels Ltd and Habib Bank Ltd.

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

The Pakistan Stock Exchange (PSX) market index breached its all-time high closing early in the week and reached the 36,235-point level. The benchmark Karachi Stock Exchange (KSE) 100-share Index gaining 148 points, or 0.41 percent, to close the week at 36,122 points. KSE 30-share Index gaining 4 points, or 0.02 percent, to end at 21,099 points.

Average daily volume rose 23% to 294.5 million shares whereas average daily value declined 12% to Rs11.2 billion/$106.9 million. Foreigners were net sellers of $12.7 million worth of shares in the outgoing week. Net selling worth $3.3 million was seen in cement sector, while net buying of $1.8 million was see in the oil & gas marketing sector.

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

  • The major highlight of the week was successful completion of the eleventh review by the International Monetary Fund (IMF) for the second last tranche of the Extended Fund Facility (EFF)
  • Significant gains were recorded in Fauji Meat Limited with a cumulative volume of 2500 shares, contributing 140 points to the index
  • Habib Bank Limited  (-3.9%) succumbed to profit taking during the week after gaining a sizable +5.35% in previous week, dragging the index down by 94 points
  • Cabinet Committee of Privatisation approved divestment of government’s residual shareholding in Kot Adu Power Company Limited (KAPCO) and also approved sale of shares in Mari Petroleum Company Limited (MPCL)
  • Index stalwarts succumbed to selling pressure with banks and cements leading the drop, as reported foreign selling in these stocks exaggerated their decline
  • The second episode of the Panama leaks failed to stir the market as it featured names of prominent business tycoons
  • Foreigners remained net sellers during the week as a sum of USD12.48 mn was drained, after a remote break in outflows seen in the week earlier that accumulated an inflow of USD21.25mn
  • Amongst small cap names PIBTL was seen rallying in the last few days on anticipation of its inclusion into MSCI small cap index, which came into fruition on the last trading day of the week
  • The auto sector witnessed HCAR piling steady gains on excitement of a stellar earnings announcement and market chatter regarding an earlier than expected model refresh of its flagship Civic
  • Pharmaceutical names witnessed steady upwards momentum during the week driven by rumors of a price increase being agreed with the regulators, while the chemical sector was in the limelight as market participants anticipate planned merger and acquisition activity to translate into meaningful outcomes
  • FBR is revising sales tax structure on 5‐major export‐oriented sectors, ie, textile, leather, carpets, surgical and sports goods under SRO.1125 during the ongoing budget exercise for FY16‐17
  • Nepra approved a reduction of PKR 3.86 per unit in power tariff for the consumers of K‐Electric under fuel adjustment surcharge for the month of March. K‐electric saved PKR 420mn through electricity generated by local sources and through external sources cost PKR 370mn additional
  • After having established a foothold in the engine oil distribution market, Hi‐Tech Lubricants is now gearing up to open 300 petrol pumps nationwide, said its company secretary Muhammad Imran
  • Mughal Iron & Steel (MUGHAL) has informed through a PSX notice that the company has been contracted by Frontier Works Organization (FWO) to supply steel bars for development work being undertaken on M-9 project located on China-Pakistan Economic Corridor’s (CPEC) Eastern route

Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY
Current Price: PKR 88.08
Target Price: PKR 135.00 

Attock Petroleum (APL) – BUY
Current Price: PKR 434.77
Target Price: PKR 626.37

Bank Al-Falah (BAFL) – BUY
Current Price: PKR 25.37
Target Price: PKR 32

Bank Al-Habib (BAHL) – BUY
Current Price: PKR 43.00
Target Price: PKR 68

DG Khan Cement (DGKC) – BUY
Current Price: PKR 180.5
Target Price: PKR 237.0

ENGRO Fertilizer Limited (EFERT) – BUY
Current Price: PKR 70.31
Target Price: PKR 106.49

Engro Corporation (ENGRO) – BUY
Current Price: PKR 325.96
Target Price: PKR 362.00

Fatima Fertilizer (FATIMA) – BUY
Current Price: PKR 31.65
Target Price: PKR 49

Fauji Cement Company Limited (FCCL) – BUY
Current Price: PKR 43.00
Target Price: PKR 50.0

Fauji Fertilizer Bin Qasim (FFBL) – BUY
Current Price: PKR 54.79
Target Price: PKR 60.48

Fauji Fertilizer Company (FFC) – BUY
Current Price: PKR 113.54
Target Price: PKR 124.19

Hascol Petroleum (HASCOL) – BUY
Current Price: PKR 145.9
Target Price: PKR 200.8

Habib Bank Limited (HBL) – BUY
Current Price: PKR 187.98
Target Price: PKR 249.7

Honda Atlas Cars (HCAR) – BUY
Current Price: PKR 297.05
Target Price: PKR 330.00

Indus Motor (INDU) – BUY
Current Price: PKR 948.53
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 600.7
Target Price: PKR 652

MCB Bank Limited (MCB) – BUY
Current Price: PKR 229.21
Target Price: PKR 268

National Bank (NBP) – BUY
Current Price: PKR 55.41
Target Price: PKR 65.00

Nishat Chun Power (NCPL) – BUY
Current Price: PKR 49.96
Target Price: PKR 63

Nishat Power Ltd (NPL) – BUY
Current Price: PKR 49.27
Target Price: PKR 59

Oil & Gas Development Co. (OGDC) – BUY
Current Price: PKR 142.6
Target Price: PKR 160

Pioneer Cement (PIOC) – BUY
Current Price: PKR 99.8
Target Price: PKR 123.0

Pakistan Petroleum (PPL) – BUY
Current Price: PKR 144.64
Target Price: PKR 168

Pak Suzuki Motors (PSMC) – BUY
Current Price: PKR 387.40
Target Price: PKR 532

Pakistan State Oil (PSO) – BUY
Current Price: PKR 377.0
Target Price: PKR 456

Pakistan Telecommunications (PTC) – BUY
Current Price: PKR 15.0
Target Price: PKR 21.9

United Bank Ltd (UBL) – BUY
Current Price: PKR 172.14
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 6 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: Feroz 1888 Mills Ltd, International Steels Ltd, Mari Petroleum, Arif Habib Corp, Lucky Cement, Ferozsons (Lab), MCB Bank Ltd, Nishat Mills Limited, ICI Pakistan and P.T.C.L.A.

Top losers of last week were: Muree Brewery Co Ltd, Indus Dyeing, Kohat Cement, Attock Refinery Ltd., Larpir Power Ltd, National Foods, B.O.Punjab, Askari Bank Ltd., EFU Life Assur Ltd.and Jah.Sidd. Co.

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

The Pakistan Stock Exchange (PSX) market closed out its second week of gains with new highs, buoyed by news flow of reclassification of Pakistan from MSCI Frontier to Emerging markets. The benchmark Karachi Stock Exchange (KSE) 100-share Index gaining 1255 points, or 3.61 percent, to close the week at 35,974 points. KSE 30-share Index gaining 889 points, or 4.40 percent, to end at 21,095 points.

The average turnover during the week recorded at 240mn shares against 242mn shares recorded previous week, depicting a downtick of 1% W/W.

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


  • Index heavy Oil & Gas sector was propelled by strength in global oil benchmarks
  • The most contribution to the index points came from OGDC, HBL, MCB, UBL, LUCK and ENGRO as they are the top contenders for the inclusion
  • Inflation increased to 4.17%YoY in Apr'16 from 3.94%YoY in Mar'16, mainly on the back of hike in food, fuel and rental indices
  • PTA is set to hold auctions for Next Generation Mobile Services (NGMS) spectrum (3G) on 11 Jun’16 targeted to generate PkR42bn revenue
  • The MoF has fiercely opposed allocation of gas from Mari field to EFERT, arguing that the fertilizer manufacturer has defaulted on payment of GIDC, whereas the MoPNR is seeking approval for allocating 60 mmcfd to Guddu power plant and 31mmcfd to EFERT
  • After rejecting the terms of reference (TORs) put forward by opposition parties, PM Sharif and his legal and political aides agreed to rope in opposition parties in negotiations to draft mutually acceptable terms for the proposed judicial commission to probe the Panama leaks
  • As result season comes to an unexciting close, investors look ahead to flashpoints, particularly upcoming MSCI's Annual Market Classification review (announcement on 14 Jun’16) where Pakistan is hopeful for re‐entry into EM status
  • On the commodity front, international crude has pulled back itself from recent highs of USD 48/barrel to USD 45/barrel without causing the local stock prices to retreat
  • During the week a net foreign inflow of ~USD16mn was witnessed, which follows a net outflow of USD12.41mn in the previous week
  • Government of Pakistan’s decision to revert the feed gas prices for old fertilizer plants was largely a non‐event as manufacturers will pass on the impact to farmers in order to off load their urea inventories
  • Auto sector had a rough week where PSMC and INDU ended flat while HCAR gained 2%
  • FBR has reduced sales tax on all petroleum products, including motor spirit on which sales tax has been brought down to PKR9.89/litre from May 1, 2016
  • USC raises pulses' prices by up to 40 %
  • Ogra has reduced natural‐gas rates for fertiliser plants but increased them for all power plants — both in public and private sectors — with backdated recovery
  • Hubco has announced that it will set up a 330MW based power project in Thar at a cost of USD500mn in partnership with other investors, subject to approval of the Private Power and Infrastructure Board (PPIB) 
  • Summit Bank eyes Burj Bank for Islamic banking entry


Following are few BUY recommendations:

Allied Bank Limited (ABL) – BUY 
Current Price: PKR 90.48
Target Price: PKR 135.00

Attock Petroleum (APL) – BUY 
Current Price: PKR 439.04
Target Price: PKR 626.37

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 25.47
Target Price: PKR 32

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 43.49
Target Price: PKR 68

DG Khan Cement (DGKC) – BUY 
Current Price: PKR 180.0
Target Price: PKR 237.0

ENGRO Fertilizer Limited (EFERT) – BUY 
Current Price: PKR 70.09
Target Price: PKR 106.49

Engro Corporation (ENGRO) – BUY
Current Price: PKR 326.81
Target Price: PKR 362.00

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 32.32
Target Price: PKR 49

Fauji Cement Company Limited (FCCL) – BUY 
Current Price: PKR 43.71
Target Price: PKR 50.0

Fauji Fertilizer Bin Qasim (FFBL) – BUY 
Current Price: PKR 54.62
Target Price: PKR 60.48

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 112.11
Target Price: PKR 124.19

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 199.04
Target Price: PKR 233.54

Honda Atlas Cars (HCAR) – BUY 
Current Price: PKR 287.79
Target Price: PKR 330.00

Indus Motor (INDU) – BUY 
Current Price: PKR 937.99
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 608.2
Target Price: PKR 652

MCB Bank Limited (MCB) – BUY 
Current Price: PKR 228.26
Target Price: PKR 268

National Bank (NBP) – BUY 
Current Price: PKR 55.82
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 50.01
Target Price: PKR 59

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 139.82
Target Price: PKR 160

Pioneer Cement (PIOC) – BUY 
Current Price: PKR 99.9
Target Price: PKR 123.0

Pak Oilfields (POL) – BUY 
Current Price: PKR 333.1
Target Price: PKR 348

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 146.3
Target Price: PKR 168

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 380.66
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 15.2
Target Price: PKR 21.9

United Bank Ltd (UBL) – BUY 
Current Price: PKR 171.61
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