Pakistan Stock Exchange (PSX) Weekly Analysis 23 February, 2019

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

Top gainers of last week were:  BAFL, OGDC, MCB, PSO, LUCK, and POL.

Top losers of last week were: UBL, HBL, HUBC, KAPCO, PSMC, MLCF, GWLC, and SNGP.

Top Volume Leaders of last week:  KEL, PIBTL, PAEL, LOTCHEM, and BOP.

The Pakistan Stock Exchange (PSX) market index continued its downward trend this week, as it closed in the red for a third consecutive week. KSE-100 index closed on 40,016 by losing 471 points or 1.16 %, while KSE-30 index closed on 19,290 by losing 164 points or - 0.85 %.

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


  • The visit from the Saudi Crown prince, who signed Memoranda's of Understanding (MoUs) amounting to US$20bn during his stay, was unable to alter investors’ sentiments due to crumbling Indo‐Pak relations and weak corporate earnings
  • A barrage of weak volumes, mediocre results (with payouts skipped by IPPs) and lack of concrete development on the passage of the Supplementary Finance Bill through parliament, kept a hold on equity market performance with the KSE-100index slipping 1.16%WoW, to close at 40,016pts
  • Sector‐wise Power Generation & Distribution, Commercial Banks and Pharmaceuticals were the worst performers as they ate away 315 points, cumulatively. Oil & Gas Exploration offered the index some support as it gained 85 points
  • Foreigners were net buyers of US$3.5mn vs. US$12.09mn in the previous week, this was their fifth consecutive week of net buying amounting to US$57mn, cumulatively. While on the local investors’ side, individuals were net sellers of US$4.7mn and Banks were net buyers of US$2.6mn
  • Earnings announcements over the coming week include INDU, NML, NCL, PIOC, DGKC, ASTL and PPL
  • The total liquid foreign reserves of Pakistan stand at US$14.795bn, as of 15 February, 2019, said State Bank of Pakistan (SBP). The foreign reserves held by the State Bank of Pakistan were US$8,043mn and the net foreign reserves with commercial banks amounted to US$6,751.6mn
  • Pakistan Tobacco Co. (PAKT) announced its 4Q2018 results, posting an EPS of Rs4.08, down 63% YoY. This was due to a 16ppts decline in gross profit margins, a 39% YoY increase in administration costs and a 45% YoY fall in other income
  • Finance Minister Asad Umar said India would itself suffer for its decision to withdraw Most Favored Nations (MFN) status to Pakistan and impose 200% duty on its products
  • The Federal Board of Revenue (FBR) has advised against imposition of sin tax on the tobacco industry, arguing that it would cause substantial revenue loss in the range of Rs25‐30bn annually
  • Federal Minister for Finance Asad Umar has said that Pakistan would be among the five largest economies of the world by the end of this century
  • The wait for the passing of a supplementary bill in the National Assembly has delayed its likely impact in tax relief to businesses and individuals
  • The country's current account deficit during January narrowed to US$809mn, falling by 47YoY from US$1.544bn recorded during December'18
  • India is pressing for Pakistan to be kept on a terrorism financing watch list following an attack in occupied Kashmir

Following are few BUY recommendations:

Attock Cement Ltd. (ACPL) – BUY 
Current Price: PKR 108.13
Target Price: PKR 140.6

Askari Bank (AKBL) – BUY 
Current Price: PKR 22.47
Target Price: PKR 28.4

Attock Petroleum (APL) – BUY 
Current Price: PKR 425.41
Target Price: PKR 479.57

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 51.54
Target Price: PKR 80.0

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 48.89
Target Price: PKR  60.1

Bank of Punjab (BOP) – BUY 
Current Price: PKR 13.36
Target Price: PKR 18.3

D.G. Khan Cement Co. (DGKC) – BUY 
Current Price: PKR 94.96
Target Price: PKR 105.00

Engro Fertilizer (EFERT) – BUY 
Current Price: PKR 74.90
Target Price: PKR 91.0

Gharibwal Cement Ltd (GWLC) – BUY 
Current Price: PKR 16.10
Target Price: PKR 25

Hascol Petroleum (HASCOL) – BUY 
Current Price: PKR 153.78
Target Price: PKR 234.57

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 133.51
Target Price: PKR 155.2

HUB Power Co. (HUBCO) – BUY 
Current Price: PKR 88.99
Target Price: PKR 136.9

Indus Motors (INDU) – BUY 
Current Price: PKR 1,297.17
Target Price: PKR 1,426.6

Kot Addu Power Co. (KAPCO) – BUY 
Current Price: PKR 46.10
Target Price: PKR 61.4

Kohat Cement Company (KOHC) – BUY 
Current Price: PKR 93.50
Target Price: PKR 111

Lotte Chemical Pak Ltd. (LOTCHEM) – BUY 
Current Price: PKR 15.69
Target Price: PKR 25.3

Lucky Cement (LUCK) – BUY 
Current Price: PKR 491.92
Target Price: PKR 605.8

Mari Petroleum Ltd. (MARI) – BUY 
Current Price: PKR   1,310.07
Target Price: PKR 1,983.6

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR   212.23
Target Price: PKR 230

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 44.17
Target Price: PKR 56.6

Millat Tractors Limited (MTL) – BUY 
Current Price: PKR 850
Target Price: PKR 1,017

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 44.60
Target Price: PKR 66.51

Nishat Chunian Limited (NCL) – BUY 
Current Price: PKR 54.58
Target Price: PKR 67.7

Nishat Chunian Power Limited (NCPL) – BUY 
Current Price: PKR 22.45
Target Price: PKR 27.8

Nishat Mills (NML) – BUY 
Current Price: PKR 141.76
Target Price: PKR 166

Nishat Power Limited (NPL) – BUY 
Current Price: PKR 25.25
Target Price: PKR 32.5

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 154.19
Target Price: PKR 190

Pakistan Oilfields (POL) – BUY 
Current Price: PKR 481.88
Target Price: PKR 593.0

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 189.92
Target Price: PKR 208

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 231.04
Target Price: PKR 298.00

Sui Northern Gas Pipeline (SNGP) – BUY 
Current Price: PKR 78.21
Target Price: PKR 96.2

United Bank Limited (UBL) – BUY 
Current Price: PKR 142.12
Target Price: PKR 170.8

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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