Pakistan Stock Exchange (PSX) Weekly Analysis 22 September, 2019

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

Top gainers of last week were:  EFOODS, EFERT, APL, ASTL, FFC, PPL, HBL, UBL, OGDC, and ENGRO.

Top losers of last week were: HASCOL, MLCF, PIOC, FFBL, and PAEL.

Top Volume Leaders of last week:  MLCF, PAEL, LOTCHEM, KEL, and WTL.

The Pakistan Stock Exchange (PSX) market index maintained the positive momentum for the third consecutive week. The KSE-100 posted a cumulative return of 8% in the past three weeks. KSE-100 index closed at 32,111 points by gaining 630 points or 2 percent. While KSE-30 index reached on 15,103 by gaining 269 points or 1.81%.

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


  • Largely in line with market expectations, the State Bank of Pakistan kept the interest rate unchanged
  • A slew of major earnings announcements accompanied by corporate action (rights issues) have raised concerns for wider sectorial dynamics (MLCF 85% rights issue) have played a large part in firming up investor expectations 
  • CAD for 2MFY20 fell to US$1.29bn from US$2.85bn during 2MFY18, which was in line with the downward trend when the deficit stood lower by 31pc to $13.58bn, from $19.8bn in FY18
  • The bullish momentum continued on the back of improved macroeconomic data and spike in global crude oil prices, which sparked a buying spree in the exploration and production (E&P) sector
  • FBR has conveyed to the visiting IMF team that the revenue collection will be standing PkR1trn against the desired target of Rs1.071tn by September 30, 2019
  • The State Bank of Pakistan conducted an auction on Wednesday in which it picked up Rs.274 Billion for 3, 5 and 10 years as cut off yields declined across the board
  • Global crude oil prices jumped a massive 20% on Monday following last weekend’s attack on two Saudi oil facilities. The impact of that development was also felt at the stock market as the index gained in the wake of increased investor interest in oil and gas exploration stocks
  • The downtrend was mostly led by profit-taking in the cement sector
  • In terms of sectors, the benchmark index was mostly driven by oil and gas exploration companies (up 204 points), commercial banks (147 points), fertilizer firms (98 points), oil and gas marketing companies (89 points) and pharmaceutical firms (56 points)
  • Foreigners were the net buyers of stocks worth $7.75 million compared to net buying of $1.01 million last week. Buying was witnessed in commercial banks ($3.6 million) and cement companies ($2 million)
  • On the domestic front, major selling was reported by insurance companies ($9 million) and mutual funds ($6.8 million)
  • Current account deficit declining 55% in first two months of FY20
  • IMF chief saying Pakistan’s loan programme was off to a good start and it could not be revised after only three months
  • Central bank holding the benchmark interest rate steady at 13.25% and SBP’s foreign exchange reserves jumping $138 million to $8.6 billion
  • Prime Minister Imran Khan PM is expected to meet President Trump ahead of the United Nations’ General Assembly meeting in New York
  • PM Khan’s visit to Saudi Arabia followed by scheduled meeting with President Trump in US may turn out to be a vital factor in Kashmir issue and FATF
  • Earning announcements are expected over the coming week from some heavyweights including PSO and PPL
  • Average volume settled at 123m shares, down 5pc while average value traded clocked in at $33m down by 13pc
  • The Securities and Exchange Policy Board (SEPB) on Wednesday approved amendments to the Exchange Traded Funds Regulations, which have been revamped to add flexibility for fund managers to appoint separate intermediaries for performing the functions of market maker and authorized participant

Following are few BUY recommendations:

Allied Bank (ABL) – BUY 
Current Price: PKR 84.43
Target Price: PKR 118.50

Attock Cement Ltd. (ACPL) – BUY 
Current Price: PKR 77.20
Target Price: PKR 142.6

Askari Bank (AKBL) – BUY 
Current Price: PKR 18.21
Target Price: PKR 28.4

Attock Petroleum (APL) – BUY 
Current Price: PKR 315.25
Target Price: PKR 402.0

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 21.43
Target Price: PKR 58.0

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 66.58
Target Price: PKR  97.64

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 40.53
Target Price: PKR  50.89

Bank of Punjab (BOP) – BUY 
Current Price: PKR 7.96
Target Price: PKR 18.3

D.G. Khan Cement Co. (DGKC) – BUY 
Current Price: PKR 47.12
Target Price: PKR 53.20

Engro Fertilizer (EFERT) – BUY 
Current Price: PKR 69.02
Target Price: PKR 77.10

Engro Foods (EFOODS) – BUY 
Current Price: PKR 56.99
Target Price: PKR 80.87

Engro Corporations (ENGRO) – BUY 
Current Price: PKR 267.85
Target Price: PKR 359.6

Engro Polymer & Chemical (EPCL) – BUY 
Current Price: PKR 25.64
Target Price: PKR 40.3

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 26.41
Target Price: PKR 35.75

Fauji Fertilizer Bin Qasim (FFBL) – BUY 
Current Price: PKR 15.43
Target Price: PKR 35.73

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 91.79
Target Price: PKR 115.77

Fauji Cement Company (FCCL) – BUY 
Current Price: PKR 12.84
Target Price: PKR 18.87

Feroze1888 Mills Ltd (FML) – BUY 
Current Price: PKR 94.00
Target Price: PKR 137.4

Gharibwal Cement Ltd (GWLC) – BUY 
Current Price: PKR 8.75
Target Price: PKR 25

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 123.73
Target Price: PKR 140.47

Habib Metropolitan Bank (HMB) – BUY 
Current Price: PKR 30.00
Target Price: PKR 43.81

HUB Power Co. (HUBCO) – BUY 
Current Price: PKR 73.39
Target Price: PKR 101.05

Indus Motors (INDU) – BUY 
Current Price: PKR 990.17
Target Price: PKR 1,426.6

Kot Addu Power Co. (KAPCO) – BUY 
Current Price: PKR 31.55
Target Price: PKR 41.93

Kohat Cement Company (KOHC) – BUY 
Current Price: PKR 47.39
Target Price: PKR 111

Lotte Chemical Pak Ltd. (LOTCHEM) – BUY 
Current Price: PKR 14.68
Target Price: PKR 25.3

Lucky Cement (LUCK) – BUY 
Current Price: PKR 346.57
Target Price: PKR 581.40

Mari Petroleum Ltd. (MARI) – BUY 
Current Price: PKR   867.95
Target Price: PKR 1,502.6

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR   170.26
Target Price: PKR 224

Meezan Bank Limited (MEBL) – BUY 
Current Price: PKR 74.39
Target Price: PKR 115.80

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 15.74
Target Price: PKR 22.90

Millat Tractors Limited (MTL) – BUY 
Current Price: PKR 701.66
Target Price: PKR 1,017

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 31.00
Target Price: PKR 54.3

Nishat Chunian Limited (NCL) – BUY 
Current Price: PKR 33.33
Target Price: PKR 55.00

Nishat Chunian Power Limited (NCPL) – BUY 
Current Price: PKR 16.44
Target Price: PKR 27.8

Nishat Mills (NML) – BUY 
Current Price: PKR 83.25
Target Price: PKR 158.00

Nishat Power Limited (NPL) – BUY 
Current Price: PKR 22.01
Target Price: PKR 32.5

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 124.37
Target Price: PKR 190

Pak Elecktron Ltd (PAEL) – BUY 
Current Price: PKR 16.52
Target Price: PKR 18.30

Pakistan Oilfields (POL) – BUY 
Current Price: PKR 367.62
Target Price: PKR 400

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 131.45
Target Price: PKR 208

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 163.44
Target Price: PKR 275.08

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 153.50
Target Price: PKR 298.00

Sui Northern Gas Pipeline (SNGP) – BUY 
Current Price: PKR 62.07
Target Price: PKR 78.4

United Bank Limited (UBL) – BUY 
Current Price: PKR 141.69
Target Price: PKR 165.50

Thank you very much for reading this article.

NOTE: The information posted in this blog /forum (http://www.karachistockexchange.com/) 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.com/) 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.com/)  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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