Pakistan Stock Exchange (PSX) Weekly Analysis 24 March, 2019

BUY recommendations are:  ACPL, AKBL, APL, ASTL, BAFL, BOP, DGKC, EFERT, FFBL, 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:  PPL, MCB, HBL, POL, and OGDC.

Top losers of last week were: HUBC, SEARL, MARI, PSMC, and NESTLE.

Top Volume Leaders of last week:  BOP, PAEL, KEL, PKGP, and TRG.

The Pakistan Stock Exchange (PSX) market index rebounded by 225 points WoW after going down for six consecutive weeks. KSE-100 index closed on 38,531.87 by gaining 225 points or 0.6%.

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


  • Market started on a positive note this week due to improved Current Account Deficit (CAD) numbers & some clarity on IMF bailout which led KSE-100 index to increase by ~545 points on Monday. Despite this positive news flow, political noise and lack of triggers kept the index under pressure for the next 3 trading sessions (index closed negative in 3 following sessions)
  • During the last trading session of this week, OGDC & PPL increased in range of 3-4% post statement by Prime Minister Imran Khan regarding expected Oil discovery in Kekra region
  • Pakistan has completed all procedural requirements with China for getting RMB 15 billion equivalent to $2.1 billion deposits for State Bank of Pakistan (SBP) in order to jack up foreign currency reserves at the effective rate of over 5 percent 
  • The total foreign exchange reserves of the country increased $743 million to $15.709 billion by the week ended March 15, 2019 from $14.966 billion a week ago
  • Commercial banks and E&Ps were the best performing sectors during the week, adding 278 points and 194 points to the index, respectively
  • Foreigners were net buyers of US$3.14mn vs. net selling of US$15.6mn in the last week. On the local investors’ side, Insurance Companies were net sellers of US$4.9mn
  • Pakgen Power Limited (PKGP) declared its annual result for 2018 posting an EPS of 1.51 vs. 0.84 in the same period last year, up by 80% YoY. Growth in profitability was achieved mainly due to significant increase in gross profit (GP) margin by 17ppts. PKGP has also announced a divided of Rs1.5/share for 4Q2018 
  • The Chinese government has finally offered Pakistan market access for three commodities — rice, sugar and yarn worth US$1bn for the current calendar year, as per official in the Commerce Division
  • Reserves held by the State Bank of Pakistan (SBP) jumped by US$715mn to US$8.8bn during the week ended on Mar 15, on account of US$1bn received from the UAE. Holdings of commercial banks also increased to US$6.87bn, hitting an all-time high
  • China will release US$2.1bn in commercial loan next week, as per top official of Ministry of Finance; An injection that will again push the gross official foreign currency reserves to double-digits after almost a year. Unlike past these loans are linked with Shanghai Interbank offered Rates instead of Libor making it an expensive transaction
  • China’s investment of over US$60bn in Pakistan’s infrastructure and power projects under the China-Pakistan Economic Corridor (CPEC) is expected to increase Pakistan’s economic growth by around 3.5 percentage points
  • US Dollar closed at an all time high level of Rs140.24. Dollar at inter bank raised by 75 paisa which in result adds more pressure on debt payment by Rs95bn
  • Malaysia and Pakistan signed Memoranda of Understanding (MoUs) for five "big projects", Finance Minister Asad Umar revealed during an informal discussion with journalists
  • An Islamabad accountability court summoned former president and co-chairperson of Pakistan People's Party Asif Ali Zardari, his sister Faryal Talpur, Hussain Lawai, Anwar Majeed and others, to appear in court on April 8 in the fake accounts case

Following are few BUY recommendations:

Attock Cement Ltd. (ACPL) – BUY 
Current Price: PKR 89.99
Target Price: PKR 140.6

Askari Bank (AKBL) – BUY 
Current Price: PKR 20.36
Target Price: PKR 28.4

Attock Petroleum (APL) – BUY 
Current Price: PKR 393.96
Target Price: PKR 479.57

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 40.40
Target Price: PKR 80.0

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 47.59
Target Price: PKR  60.1

Bank of Punjab (BOP) – BUY 
Current Price: PKR 13.08
Target Price: PKR 18.3

D.G. Khan Cement Co. (DGKC) – BUY 
Current Price: PKR 85.36
Target Price: PKR 105.00

Engro Fertilizer (EFERT) – BUY 
Current Price: PKR 72.03
Target Price: PKR 91.0

Fauji Fertilizer Bin Qasim (FFBL) – BUY 
Current Price: PKR 35.53
Target Price: PKR 43.5

Gharibwal Cement Ltd (GWLC) – BUY 
Current Price: PKR 13.55
Target Price: PKR 25

Hascol Petroleum (HASCOL) – BUY 
Current Price: PKR 125.24
Target Price: PKR 234.57

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 136.58
Target Price: PKR 155.2

HUB Power Co. (HUBCO) – BUY 
Current Price: PKR 76.06
Target Price: PKR 136.9

Indus Motors (INDU) – BUY 
Current Price: PKR 1,301.06
Target Price: PKR 1,426.6

Kot Addu Power Co. (KAPCO) – BUY 
Current Price: PKR 44.27
Target Price: PKR 61.4

Kohat Cement Company (KOHC) – BUY 
Current Price: PKR 86.74
Target Price: PKR 111

Lotte Chemical Pak Ltd. (LOTCHEM) – BUY 
Current Price: PKR 13.74
Target Price: PKR 25.3

Lucky Cement (LUCK) – BUY 
Current Price: PKR 429.82
Target Price: PKR 605.8

Mari Petroleum Ltd. (MARI) – BUY 
Current Price: PKR   1 ,243.37
Target Price: PKR 1,983.6

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR   196.98
Target Price: PKR 230

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 38.74
Target Price: PKR 56.6

Millat Tractors Limited (MTL) – BUY 
Current Price: PKR 831.04
Target Price: PKR 1,017

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 40.78
Target Price: PKR 66.51

Nishat Chunian Limited (NCL) – BUY 
Current Price: PKR 51.66
Target Price: PKR 67.7

Nishat Chunian Power Limited (NCPL) – BUY 
Current Price: PKR 22.92
Target Price: PKR 27.8

Nishat Mills (NML) – BUY 
Current Price: PKR 133.20
Target Price: PKR 166

Nishat Power Limited (NPL) – BUY 
Current Price: PKR 24.07
Target Price: PKR 32.5

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 145.94
Target Price: PKR 190

Pakistan Oilfields (POL) – BUY 
Current Price: PKR 453.26
Target Price: PKR 593.0

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 185.74
Target Price: PKR 208

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 212.60
Target Price: PKR 298.00

Sui Northern Gas Pipeline (SNGP) – BUY 
Current Price: PKR 68.79
Target Price: PKR 96.2

United Bank Limited (UBL) – BUY 
Current Price: PKR 137.27
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

2 comments:

  1. It is true and fact that nowadays the market of Pakistan stock exchange is not stable. Really appreciate you for this article. Keep it up.
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    ReplyDelete