Pakistan Stock Exchange (PSX) Weekly Analysis 28 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:  CHCC, UBL, FCCL, HMB, INDU, ENGRO, DAWH, LUCK, and MEBL.

Top losers of last week were: PPL, FFBL, FFC, ASTL, FATIMA, PSMC, MLCF, SEARL, PSO, and ABOT.

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

The Pakistan Stock Exchange (PSX) market index started the week on a negative note, losing 888pts (-2.4%) in the first two trading sessions. Later, market recovered 727 points in three sessions and helped index to close flat. KSE-100 index closed on 37,131 by losing -161 points or - 0.43 %, while KSE-30 index closed on 17,671 by losing -68 points or - 0.39 %.

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


  • The new economic team of gov’t has decided to fine-tune the much-awaited tax amnesty scheme which will be unveiled soon as a comprehensive document
  • The government has reportedly kick started the process of renegotiation of power purchase tariffs with the IPPs to ease of burden of mounting circular debts
  • The government and pharmaceutical companies have reportedly agreed on full implementation of Statutory Regulatory Order (SRO) 1610 pertaining to the hardship cases
  • The budget deficit touched PkR1.6bn (4.2% of GDP) in the first nine months of the current fiscal year
  • The Supreme Court has restored deduction of withholding tax, sales tax and service charges on pre-paid cellular scratch cards by vacating its earlier suspension order
  • During the week, financial results for 1Q2019 were announced by the all major banks namely HBL, UBL, MCB, ABL, and MEBL. Investors went long after these announcements as NII of nearly all banks witnessed decent growth. Commercial banks added 300 points to index during last three sessions, while full week addition was 115 points 
  • Foreigners were net buyers of US$9.3mn vs. net selling of US$1.9mn last week. Among local investors, during the week banks were net buyers of US$3.1mn while mutual funds were net sellers of US$8.2mn. Companies on the other hand were net buyers of US$3.0mn
  • Jubilee Life Insurance announced its result for 1Q2019 declaring an EPS of Rs3.75 vs. Rs9.50 in same period last year. The decline in Profit After Tax is mainly due to contraction in margins by 8ppts in 1QCY19
  • Indus Motors (INDU) declared its 3QFY19 result posting an EPS of Rs42.56 vs. Rs54.35 in same period last year. Earnings were reduced by 22% YoY as a result of depletion in GP margin by 5ppts to 12%. Other income have increased by 17% YoY contributing positively to the bottom-line. INDU has declared an interim cash dividend of Rs30/share for this quarter
  • Unilever Pakistan Foods Limited (UPFL) has announced its result with an EPS of Rs87.50 in1Q2019. Revenue has increased by 3% YoY but Gross profit has declined by 4% YoY due to inflationary pressures. UPFL has declared an interim cash dividend of Rs88/share for this quarter
  • Pioneer Cement Ltd has announced its 3QFY19 result declaring an EPS of Rs1.31 vs. Rs1.81 in same period last year. PAT has declined by 28% YoY mainly due to rise in Finance cost by 2.64x compared with same period last year
  • Pakistan and the International Monetary Fund (IMF) will begin discussing the aid package for Islamabad from April 29,2019

Following are few BUY recommendations:

Attock Cement Ltd. (ACPL) – BUY 
Current Price: PKR 89.97
Target Price: PKR 142.6

Askari Bank (AKBL) – BUY 
Current Price: PKR 20.88
Target Price: PKR 28.4

Attock Petroleum (APL) – BUY 
Current Price: PKR 363.75
Target Price: PKR 479.57

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 32.30
Target Price: PKR 58.0

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 82.66
Target Price: PKR  97.64

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 44.87
Target Price: PKR  60.1

Bank of Punjab (BOP) – BUY 
Current Price: PKR 12.71
Target Price: PKR 18.3

Cherat Cement Co Limited (CHCC) – BUY 
Current Price: PKR 45.01
Target Price: PKR 71.00

D.G. Khan Cement Co. (DGKC) – BUY 
Current Price: PKR 74.71
Target Price: PKR 105.00

Engro Fertilizer (EFERT) – BUY 
Current Price: PKR 70.57
Target Price: PKR 91.0

Engro Foods (EFOODS) – BUY 
Current Price: PKR 61.47
Target Price: PKR 80.87

Engro Corporations (ENGRO) – BUY 
Current Price: PKR 323.37
Target Price: PKR 359.6

Engro Polymer & Chemical (EPCL) – BUY 
Current Price: PKR 30.95
Target Price: PKR 46.3

Fauji Fertilizer Bin Qasim (FFBL) – BUY 
Current Price: PKR 29.01
Target Price: PKR 35.73

Fauji Cement Company (FCCL) – BUY 
Current Price: PKR 18.49
Target Price: PKR 25.3

Gharibwal Cement Ltd (GWLC) – BUY 
Current Price: PKR 12.04
Target Price: PKR 25

Hascol Petroleum (HASCOL) – BUY 
Current Price: PKR 91.23
Target Price: PKR 234.57

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 127.15
Target Price: PKR 143.25

HUB Power Co. (HUBCO) – BUY 
Current Price: PKR 75.57
Target Price: PKR 136.9

Indus Motors (INDU) – BUY 
Current Price: PKR 1,348.34
Target Price: PKR 1,426.6

Kot Addu Power Co. (KAPCO) – BUY 
Current Price: PKR 42.40
Target Price: PKR 61.4

Kohat Cement Company (KOHC) – BUY 
Current Price: PKR 76.46
Target Price: PKR 111

Lotte Chemical Pak Ltd. (LOTCHEM) – BUY 
Current Price: PKR 16.88
Target Price: PKR 25.3

Lucky Cement (LUCK) – BUY 
Current Price: PKR 395.83
Target Price: PKR 605.8

Mari Petroleum Ltd. (MARI) – BUY 
Current Price: PKR   1 ,177.29
Target Price: PKR 1,983.6

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR   189.99
Target Price: PKR 224

Meezan Bank Limited (MEBL) – BUY 
Current Price: PKR 97.40
Target Price: PKR 115.80

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 28.52
Target Price: PKR 56.6

Millat Tractors Limited (MTL) – BUY 
Current Price: PKR 902.11
Target Price: PKR 1,017

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 39.05
Target Price: PKR 66.51

Nishat Chunian Limited (NCL) – BUY 
Current Price: PKR 46.23
Target Price: PKR 55.00

Nishat Chunian Power Limited (NCPL) – BUY 
Current Price: PKR 17.92
Target Price: PKR 27.8

Nishat Mills (NML) – BUY 
Current Price: PKR 123.03
Target Price: PKR 158.00

Nishat Power Limited (NPL) – BUY 
Current Price: PKR 24.13
Target Price: PKR 32.5

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 144.93
Target Price: PKR 190

Pak Elecktron Ltd (PAEL) – BUY 
Current Price: PKR 22.16
Target Price: PKR 28.20

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 26.09
Target Price: PKR 46.0

Pakistan Oilfields (POL) – BUY 
Current Price: PKR 438.15
Target Price: PKR 593.0

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 175.86
Target Price: PKR 208

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 200.08
Target Price: PKR 298.00

Sui Northern Gas Pipeline (SNGP) – BUY 
Current Price: PKR 75.93
Target Price: PKR 96.2

United Bank Limited (UBL) – BUY 
Current Price: PKR 147.09
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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