Pakistan Stock Exchange (PSX) Weekly Analysis 5 May, 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:  BOP, PSO, MLCF, KEL, MCB, PSMC, HMB, PAEL, and NBP.

Top losers of last week were: KAPCO, ATLH, ASTL, HASCOL, ARPL, PTC, PSO, FFBL, POL, and PPL.

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

The Pakistan Stock Exchange (PSX) market index continued to remain red for the whole week, where all sessions closed red as investors remained cautious over economy issues and ongoing talk with IMF team. KSE-100 index closed on 36,123 by losing -1008 points or - 2.71 %, while KSE-30 index closed on 17,077 by losing -594 points or - 3.36 %.

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


  • With the start of the Holy month of Ramadan and associated shortening of trading hours, consolidation is likely to be the norm. Major checkpoints in the coming month include the possible entry into an IMF program (and associated terms and conditions), mid-month MSCI review and Budget FY20, possibly furthering retrenchment amongst market participants
  • Average volumes dropped 14% vs. last week to 105mn sharers and value traded fell by 13% in regular market. Similarly, in future market volume dropped by 66% to 44mn compared to previous week of 128mn shares
  • During the week, foreigners were net buyers of US$4.76mn vs. net buying of US$9.3mn last week. Among local investors, banks were net buyers of US$1.71mn while mutual funds were net sellers of US$13.4mn. Individuals on the other hand were net buyers of US$2.2mn
  • E&P sector remained the most decliner during the week and eroded 309 points from index followed by banks (171pts) and fertilizer (148pts)
  • Continuing to price-in increased macro risks, event based factors and general slag in earnings growth witnessed during the outgoing results season
  • Amidst ongoing negotiations for an additional IMF program reportedly for US$6.5bn in funding, the IMF team has pushed for significant power sector reforms including resolution of circular debt, 25% hike in consumer power tariff and higher gas prices
  • CPI read for the month of April'19 was recorded at 8.8%YoY, in line with market expectations where food inflation trended higher
  • Petroleum division of the Ministry of Energy and OGRA stated that a hike in gas tariffs was imminent and necessary for curtailing persistent accruals in the domestic energy chain
  • Amongst a number of MoU's signed in Beijing under the Belt and Road Forum being held there, KEL signed an agreement for setting up a 700MW coal fired power plant with CMEC
  • The United States has acknowledged that recently both civil and military leaders in Pakistan have taken steps to eliminate terrorism
  • Pak Suzuki Motor Company has increased prices of Cultus and two Swift variants by Rs30,000 mainly due to passing the impact of rupee depreciation on to consumers
  • Pakistan’s economy is going through tough times and as per the norm the country is back on the International Monetary Fund’s (IMF) doorstep. Technical teams of the IMF and Pakistan are locked in negotiations for a bailout package and hope to strike a deal by May 10

Following are few BUY recommendations:

Attock Cement Ltd. (ACPL) – BUY 
Current Price: PKR 89.79
Target Price: PKR 142.6

Askari Bank (AKBL) – BUY 
Current Price: PKR 20.47
Target Price: PKR 28.4

Attock Petroleum (APL) – BUY 
Current Price: PKR 350.68
Target Price: PKR 479.57

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 29.70
Target Price: PKR 58.0

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 81.83
Target Price: PKR  97.64

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 44.04
Target Price: PKR  60.1

Bank of Punjab (BOP) – BUY 
Current Price: PKR 12.13
Target Price: PKR 18.3

Cherat Cement Co Limited (CHCC) – BUY 
Current Price: PKR 43.69
Target Price: PKR 71.00

D.G. Khan Cement Co. (DGKC) – BUY 
Current Price: PKR 72.00
Target Price: PKR 105.00

Engro Fertilizer (EFERT) – BUY 
Current Price: PKR 68.26
Target Price: PKR 91.0

Engro Foods (EFOODS) – BUY 
Current Price: PKR 60.06
Target Price: PKR 80.87

Engro Corporations (ENGRO) – BUY 
Current Price: PKR 285.64
Target Price: PKR 359.6

Engro Polymer & Chemical (EPCL) – BUY 
Current Price: PKR 28.67
Target Price: PKR 46.3

Fauji Fertilizer Bin Qasim (FFBL) – BUY 
Current Price: PKR 27.02
Target Price: PKR 35.73

Fauji Cement Company (FCCL) – BUY 
Current Price: PKR 17.85
Target Price: PKR 25.3

Gharibwal Cement Ltd (GWLC) – BUY 
Current Price: PKR 11.50
Target Price: PKR 25

Hascol Petroleum (HASCOL) – BUY 
Current Price: PKR 92.70
Target Price: PKR 234.57

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 122.44
Target Price: PKR 143.25

HUB Power Co. (HUBCO) – BUY 
Current Price: PKR 71.90
Target Price: PKR 136.9

Indus Motors (INDU) – BUY 
Current Price: PKR 1,294.59
Target Price: PKR 1,426.6

Kot Addu Power Co. (KAPCO) – BUY 
Current Price: PKR 41.06
Target Price: PKR 61.4

Kohat Cement Company (KOHC) – BUY 
Current Price: PKR 73.24
Target Price: PKR 111

Lotte Chemical Pak Ltd. (LOTCHEM) – BUY 
Current Price: PKR 15.57
Target Price: PKR 25.3

Lucky Cement (LUCK) – BUY 
Current Price: PKR 384.62
Target Price: PKR 605.8

Mari Petroleum Ltd. (MARI) – BUY 
Current Price: PKR   1 ,147.38
Target Price: PKR 1,983.6

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR   187.25
Target Price: PKR 224

Meezan Bank Limited (MEBL) – BUY 
Current Price: PKR 93.51
Target Price: PKR 115.80

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 27.82
Target Price: PKR 56.6

Millat Tractors Limited (MTL) – BUY 
Current Price: PKR 882.51
Target Price: PKR 1,017

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 39.02
Target Price: PKR 66.51

Nishat Chunian Limited (NCL) – BUY 
Current Price: PKR 43.70
Target Price: PKR 55.00

Nishat Chunian Power Limited (NCPL) – BUY 
Current Price: PKR 18.77
Target Price: PKR 27.8

Nishat Mills (NML) – BUY 
Current Price: PKR 119.88
Target Price: PKR 158.00

Nishat Power Limited (NPL) – BUY 
Current Price: PKR 23.80
Target Price: PKR 32.5

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 138.32
Target Price: PKR 190

Pak Elecktron Ltd (PAEL) – BUY 
Current Price: PKR 22.50
Target Price: PKR 28.20

Pioneer Cement Limited (PIOC) – BUY 
Current Price: PKR 25.57
Target Price: PKR 46.0

Pakistan Oilfields (POL) – BUY 
Current Price: PKR 409.89
Target Price: PKR 593.0

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 165.21
Target Price: PKR 208

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 185.74
Target Price: PKR 298.00

Sui Northern Gas Pipeline (SNGP) – BUY 
Current Price: PKR 74.43
Target Price: PKR 96.2

United Bank Limited (UBL) – BUY 
Current Price: PKR 146.26
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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