Pakistan Stock Exchange (PSX) Weekly Analysis 17 February, 2019

BUY recommendations are:  ACPL, AKBL, APL, ASTL, BAFL, BOP, CHCC, DGKC, EFERT, FATIMA, 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:  CHCC, OGDC, PPL, DGKC, KEL, KAPCO, COLG, and UBL.

Top losers of last week were: PSMC, HBL, PSO, APL, PAKT, EFOODS, BAHL, and PSEL.

Top Volume Leaders of last week:  KEL, LOTCHEM, ANL, DGKC, and FCCL.

The Pakistan Stock Exchange (PSX) market index was in the red for a second consecutive‐week as poor corporate earnings as well as lack of any positive triggers, led investors to resort to profit‐taking. KSE-100 index closed on 40,487 by losing 400 points or 0.98 %, while KSE-30 index closed on 19,454   by losing 145 points or - 0.74 %.

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


  • News about a deadly attack in Indian occupied Kashmir (killed more than 40 soldiers) kept the market range‐bound on the last day of the week, as India blamed Pakistan based militant group for the attack, which may hinder regional and on‐going peace talks
  • Investors will eye the Saudi Arabia Crown Prince visit over the weekend, which is anticipated to be followed by multiple investment deals/MoUs worth US$10‐20bn, as per media outlets
  • The hint by Finance Minister of opting for an IMF program could not cheer the investors as they preferred to book profits after the index posting an increase of ~10% in Jan'18
  • Commercial Banks, OMC’s and Fertilizer dragged the index down this week, eating away 283 points, cumulatively. On the other end, due to rising international oil prices E&P’s offered the benchmark index some respite as it added 78 points
  • Foreigners were net buyers during the week of US$12 09mn vs US$12 17mn in the previous week this was their third consecutive week of net buying. While on the local investors’ side, individuals were net buyers of US$5.9mn and Insurance companies were net sellers of US$3.6mn
  • The foreign exchange reserves, held by the central bank, increased 0.16% on a weekly basis, according to data released by the State Bank of Pakistan (SBP)
  • As per a news report, the government is anticipating the fiscal deficit for the current fiscal year to reach 6.3% of gross domestic product (GDP) and miss the 5.1% target set in September last year by a wide margin
  • The government has formally sought help from the World Bank (WB) to improve the business and investment environment in the country, said Adviser to the Prime Minister on Commerce and Investment Razak Dawood
  • A Senate committee said the 53% cut in the budget for information technology in the country is unreasonable, especially when economic growth worldwide depends on progress in this field
  • Global energy demand will surge by a third over the next two decades on advancing prosperity, but Indian demand growth will eclipse that of flagging giant China, Britain’s BP forecast
  • Declining coal prices (down 11% since start of Dec'19) invigorated euphoria among cement stocks in the early part of the week, however, some selling was witnessed in the latter half as profit taking took effect
  • Inflows of US$1.6mn depicted muted foreign interest while the average daily turnover stood at 125mn, down 34.7%WoW
  • The Government reportedly deciding to take up to US$6 billion loan from the International Monetary Fund (IMF)
  • Pakistan and Saudi Arabia likely to ink three major Memorandum of Understanding (MoUs) amounting to over US$10 billion during the upcoming visit of Saudi Prince
  • Exports during 7MFY19 witnessing an increase of 2.24% to US$13.2 billion
  • Moody's Investors Services changing its outlook for the banking system in Pakistan to negative (B3 negative) from stable
  • Taliban saying that their negotiators would meet US envoys for talks this month in Islamabad, and will also sit down with Prime Minister Imran Khan to discuss Afghanistan
  • Continuation of result season will also keep the activity uplifted in selected stocks where some blue chips like PSO, UBL, MCB, ENGRO are expected to announce their results

Following are few BUY recommendations:

Attock Cement Ltd. (ACPL) – BUY 
Current Price: PKR 111.99
Target Price: PKR 140.6

Askari Bank (AKBL) – BUY 
Current Price: PKR 23.06
Target Price: PKR 28.4

Attock Petroleum (APL) – BUY 
Current Price: PKR 428.95
Target Price: PKR 479.57

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 53.80
Target Price: PKR 80.0

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 49.02
Target Price: PKR  60.1

Bank of Punjab (BOP) – BUY 
Current Price: PKR 13.59
Target Price: PKR 18.3

Cherat Cement Co. Ltd. (CHCC) – BUY 
Current Price: PKR 72.51
Target Price: PKR 96

D.G. Khan Cement Co. (DGKC) – BUY 
Current Price: PKR 97.60
Target Price: PKR 105.00

Engro Fertilizer (EFERT) – BUY 
Current Price: PKR 75.85
Target Price: PKR 91.0

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 33.01
Target Price: PKR 45.1

Gharibwal Cement Ltd (GWLC) – BUY 
Current Price: PKR 17.20
Target Price: PKR 25

Hascol Petroleum (HASCOL) – BUY 
Current Price: PKR 157.05
Target Price: PKR 234.57

HUB Power Co. (HUBCO) – BUY 
Current Price: PKR 92.49
Target Price: PKR 136.9

Indus Motors (INDU) – BUY 
Current Price: PKR 1,297.00
Target Price: PKR 1,426.6

Kot Addu Power Co. (KAPCO) – BUY 
Current Price: PKR 51.90
Target Price: PKR 64

Kohat Cement Company (KOHC) – BUY 
Current Price: PKR 87.50
Target Price: PKR 111

Lotte Chemical Pak Ltd. (LOTCHEM) – BUY 
Current Price: PKR 16.31
Target Price: PKR 25.3

Lucky Cement (LUCK) – BUY 
Current Price: PKR 485.41
Target Price: PKR 605.8

Mari Petroleum Ltd. (MARI) – BUY 
Current Price: PKR   1,299.50
Target Price: PKR 1,983.6

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR   205.84
Target Price: PKR 224.73

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 47.40
Target Price: PKR 56.6

Millat Tractors Limited (MTL) – BUY 
Current Price: PKR 855.17
Target Price: PKR 1,017

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 46.23
Target Price: PKR 66.51

Nishat Chunian Limited (NCL) – BUY 
Current Price: PKR 57.09
Target Price: PKR 67.7

Nishat Chunian Power Limited (NCPL) – BUY 
Current Price: PKR 22.10
Target Price: PKR 27.8

Nishat Mills (NML) – BUY 
Current Price: PKR 142.33
Target Price: PKR 158

Nishat Power Limited (NPL) – BUY 
Current Price: PKR 25.50
Target Price: PKR 32.5

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 149.96
Target Price: PKR 190

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 45.32
Target Price: PKR 60

Pakistan Oilfields (POL) – BUY 
Current Price: PKR 474.39
Target Price: PKR 593.0

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 189.78
Target Price: PKR 208

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 222.50
Target Price: PKR 298.00

Sui Northern Gas Pipeline (SNGP) – BUY 
Current Price: PKR 84.30
Target Price: PKR 96.2

United Bank Limited (UBL) – BUY 
Current Price: PKR 153.73
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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