Pakistan Stock Exchange (PSX) Weekly Analysis 13 April, 2019

BUY recommendations are:  ACPL, AKBL, APL, ASTL, BAHL, BAFL, BOP, CHCC, DGKC, EFERT, EFOODS, ENGRO, EPCL, FFBL, FCCL, GWLC, HASCOL, HBL, HUBCO, INDU, KAPCO, KOHC, LOTCHEM, LUCK, MARI, MCB, MEBL, MLCF, MTL, NBP, NCL, NCPL, NML, NPL, OGDC, PAEL, PIOC, POL, PPL, PSO, SNGP, and UBL.

Top gainers of last week were:  HUBC, PSO, NESTLE, FABL, HBL, NBP, INDU, and UBL.

Top losers of last week were: CHCC, LUCK, DGKC, PPL, PIOC, MLCF, HASCOL, and FCCL.

Top Volume Leaders of last week:  KEL, WTL, MLCF, FCCL, and BOP.

The Pakistan Stock Exchange (PSX) market index remained volatile and market performance during the outgoing week remained under pressure, where KSE-100 index troughed at 36,579 points mid-week, lowest level since PTI’s government came to power. KSE-100 index closed on 37,338 by losing -184 points or - 0.49%, while KSE-30 index closed on 17,651 by losing 84 or - 0.47 %.

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


  • The market rumor of a potential price war in cement sector led to a further drag on the market performance
  • Pakistan, IMF at odds over PkR5.4tn tax collection target vs. 4.0tn collected in FY18
  • IMF’s forecast for Pakistan’s GDP growth rate to remain at 2.5% till 2024, and fiscal deficit to peak at 8.7% of GDP in FY20, without reforms
  • Government mulling over a gas price hike of 20-42%, effective Jul’19 to reduce losses incurred by gas companies in the outgoing financial year
  • Trade deficit declining by 14% in 9MFY19 due to sharp currency devaluation since Dec’18
  • Flattish exports during 9MFY19, posting an especially bad performance during Mar’19 (down 11% YoY)
  • Autos sales, which remained flattish at 160K units during 9MFY19, with cars of 800cc and below did exceptionally well due to removal of non-filer ban in Mar’19
  • The market during upcoming week is expected to be dominated by further news flow regarding development on IMF program, announcement of another Amnesty scheme and submission of FATF’s third implementation report on 15th April
  • The result season has started on a weak note, with APL posting below expected results, and will continue to hold sway over market performance
  • During the week, foreigners were net sellers of US$2.2mn vs. net selling of US$3.7mn last week. While, among local investors, during the week banks were net buyers of US$4.0mn while mutual funds were net sellers of US$3.4mn
  • Attock Petroleum (APL) announced 3QFY19 earnings of Rs2.9, down 80% YoY driven by lower margins during the quarter. Gross Margins of APL declined to 1.8% in 3QFY9 vs. 5.4% in same period last year. Net sales of the company improved to Rs48.9bn in 3QFY19, +8% YoY. APL has announced interim cash dividend of Rs 10/share
  • As per media reports; Policy board has recommended to form a stock market support fund to boost investor confidence on Pakistan’s capital markets, especially at a time when Pakistan’s Emerging Market status will be under scrutiny in MSCI Date of fund launch and its size is yet to be confirmed
  • Prime Minister Imran Khan has said that the government was not only giving top priority to China Pakistan Economic Corridor (CPEC) project but wanted to further expand its scope so that other countries could also become part of the gigantic project and a new era of progress and prosperity started in the region
  • The government has disbursed about Rs449 bn for development program on completion of first three quarters of 2018-19, down 26%, from Rs607bn in same period last year
  • The total liquid foreign reserves held by the country stood at US$17.2bn as on April 5, down by US$169mn. As per figures, foreign reserves held by the SBP stood at US$10.3bn whereas the net foreign reserves held by commercial banks were recorded at 6.9 bn

Following are few BUY recommendations:

Attock Cement Ltd. (ACPL) – BUY 
Current Price: PKR 8 6.1
Target Price: PKR 142.6

Askari Bank (AKBL) – BUY 
Current Price: PKR 2 0.2
Target Price: PKR 28.4

Attock Petroleum (APL) – BUY 
Current Price: PKR 381.14
Target Price: PKR 479.57

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 36.47
Target Price: PKR 80.0

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 83.15
Target Price: PKR  97.64

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 44.64
Target Price: PKR  60.1

Bank of Punjab (BOP) – BUY 
Current Price: PKR 1 3.6
Target Price: PKR 18.3

Cherat Cement Co Limited (CHCC) – BUY 
Current Price: PKR 49.19
Target Price: PKR 71.00

D.G. Khan Cement Co. (DGKC) – BUY 
Current Price: PKR 75.37
Target Price: PKR 105.00

Engro Fertilizer (EFERT) – BUY 
Current Price: PKR 7 1.4
Target Price: PKR 91.0

Engro Foods (EFOODS) – BUY 
Current Price: PKR 62.68
Target Price: PKR 80.87

Engro Corporations (ENGRO) – BUY 
Current Price: PKR 319.7
Target Price: PKR 359.6

Engro Polymer & Chemical (EPCL) – BUY 
Current Price: PKR 3 3.8
Target Price: PKR 46.3

Fauji Fertilizer Bin Qasim (FFBL) – BUY 
Current Price: PKR 3 2.5
Target Price: PKR 43.5

Fauji Cement Company (FCCL) – BUY 
Current Price: PKR 1 7.2
Target Price: PKR 25.3

Gharibwal Cement Ltd (GWLC) – BUY 
Current Price: PKR 12.56
Target Price: PKR 25

Hascol Petroleum (HASCOL) – BUY 
Current Price: PKR 99.67
Target Price: PKR 234.57

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 125.87
Target Price: PKR 143.25

HUB Power Co. (HUBCO) – BUY 
Current Price: PKR 77.12
Target Price: PKR 136.9

Indus Motors (INDU) – BUY 
Current Price: PKR 1,306.85
Target Price: PKR 1,426.6

Kot Addu Power Co. (KAPCO) – BUY 
Current Price: PKR 4 1.7
Target Price: PKR 61.4

Kohat Cement Company (KOHC) – BUY 
Current Price: PKR 7 7.5
Target Price: PKR 111

Lotte Chemical Pak Ltd. (LOTCHEM) – BUY 
Current Price: PKR 1 5.1
Target Price: PKR 25.3

Lucky Cement (LUCK) – BUY 
Current Price: PKR 396.05
Target Price: PKR 605.8

Mari Petroleum Ltd. (MARI) – BUY 
Current Price: PKR   1 ,199.9
Target Price: PKR 1,983.6

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR   189.29
Target Price: PKR 224

Meezan Bank Limited (MEBL) – BUY 
Current Price: PKR 96.14
Target Price: PKR 115.80

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 30.97
Target Price: PKR 56.6

Millat Tractors Limited (MTL) – BUY 
Current Price: PKR 885.4
Target Price: PKR 1,017

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 40.74
Target Price: PKR 66.51

Nishat Chunian Limited (NCL) – BUY 
Current Price: PKR 47.55
Target Price: PKR 55.00

Nishat Chunian Power Limited (NCPL) – BUY 
Current Price: PKR 1 8.6
Target Price: PKR 27.8

Nishat Mills (NML) – BUY 
Current Price: PKR 126.19
Target Price: PKR 158.00

Nishat Power Limited (NPL) – BUY 
Current Price: PKR 2 3.2
Target Price: PKR 32.5

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 144.43
Target Price: PKR 190

Pak Elecktron Ltd (PAEL) – BUY 
Current Price: PKR 21.89
Target Price: PKR 28.20

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 29.29
Target Price: PKR 46.0

Pakistan Oilfields (POL) – BUY 
Current Price: PKR 445.3
Target Price: PKR 593.0

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 177.03
Target Price: PKR 208

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 212.94
Target Price: PKR 298.00

Sui Northern Gas Pipeline (SNGP) – BUY 
Current Price: PKR 7 2.6
Target Price: PKR 96.2

United Bank Limited (UBL) – BUY 
Current Price: PKR 132.72
Target Price: PKR 154.60

Thank you very much for reading this article.

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Written by: Rana Khuram

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