Pakistan Stock Exchange (PSX) Weekly Analysis 6 October, 2019

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

Top gainers of last week were:  HBL, HUBC, ENGRO, DGKC, CHCC, MLCF, GWLC, PIOC and NBP.

Top losers of last week were: POL, FATIMA, APL, ABL and UBL.

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

The Pakistan Stock Exchange (PSX) market index performed remarkably in the outgoing week as developments on economic and political fronts contributed to the euphoric mood. KSE-100 index closed on 33,033 by gaining 962 points or 3.00%. While KSE-30 index reached on 15,493 by gaining 495 points or 3.30 %.

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


  • News regarding the increase in tax collection in 1QFY20 sparked buying interest
  • The performance of benchmark index, for the larger part of the week, was driven by cement sector owing to rise in the prices of cement in Northern region and a rise of 12.4pc in local despatches
  • Inflation for September, measured through the Consumer Price Index (CPI),clocking in at 11.37%, versus 10.49% in the previous month
  • Commercial Banks and Cement Sector emerged as the top performers during the week, as they collectively contributed 420 points to the index
  • The local investors bought securities worth of Rs. 43.1 billion, amongst which, Individual investors emerged as the largest net buyers as they bought securities worth Rs. 27.5 billion. On the flip side, local investors sold securities worth 42.4 billion. This resulted in an overall net buying of Rs. 740.9 million over the week
  • The Rupee Depreciated by 36 paisa during the week, closing at 156.53 compared to 156.17 from previous Friday
  • Later in the week, a meeting of the business community with the army chief and separately with Prime Minister Imran Khan further helped the bourse to make a handsome recovery
  • Despite a decline in international crude oil prices, the stocks of oil and gas exploration companies resisted the pressure
  • Market activity jumped significantly during the week as average daily trading volumes went up 106% to 223 million shares while the average daily traded value surged 58% to $40 million
  • In terms of sectors, positive contribution came from commercial banks (up 231 points), cement companies (189 points), power generation and distribution firms (96 points), oil and gas marketing companies (93 points) and fertiliser producers (68 points)
  • Foreign selling continued during the week, which came in at $4.7 million compared to net selling of $8.8 million last week. Selling was witnessed in commercial banks ($4.6 million) and food and personal care companies ($1.7 million). On the domestic front, major buying was reported by other organisations ($4.9 million) and individuals ($4.4 million) while banks and insurance firms were net sellers of $4.13 million and $4.75 million respectively
  • Petroleum product prices were left unchanged
  • Suzuki raising Alto 660 and bike prices
  • K-Electric signing a $50-million loan pact
  • The government making an Rs1.66-per-unit hike in power tariff
  • The central bank’s foreign exchange reserves falling to a three-month low of $7.7bn
  • Concerns over the upcoming Financial Action Task Force and the political headwinds on the announcement of long march to Islamabad starting on 27th by a major political party could not spoil the mood of investors

Following are few BUY recommendations:

Allied Bank (ABL) – BUY 
Current Price: PKR 87.0
Target Price: PKR 109.9

Attock Cement Ltd. (ACPL) – BUY 
Current Price: PKR 80.2
Target Price: PKR 104.0

Askari Bank (AKBL) – BUY 
Current Price: PKR 17.7
Target Price: PKR 26.4

Attock Petroleum (APL) – BUY 
Current Price: PKR 309.0
Target Price: PKR 402.0

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 24.81
Target Price: PKR 58.0

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 67.32
Target Price: PKR  97.64

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 42.8
Target Price: PKR  60.3

Bank of Punjab (BOP) – BUY 
Current Price: PKR 9.1
Target Price: PKR 14.8

Engro Fertilizer (EFERT) – BUY 
Current Price: PKR 69.0
Target Price: PKR 83.8

Engro Foods (EFOODS) – BUY 
Current Price: PKR 62.49
Target Price: PKR 80.87

Engro Corporations (ENGRO) – BUY 
Current Price: PKR 274.1
Target Price: PKR 340.9

Engro Polymer & Chemical (EPCL) – BUY 
Current Price: PKR 25.3
Target Price: PKR 40.3

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 26.15
Target Price: PKR 35.75

Fauji Fertilizer Bin Qasim (FFBL) – BUY 
Current Price: PKR 16.4
Target Price: PKR 23.0

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 93.5
Target Price: PKR 116.45

Fauji Cement Company (FCCL) – BUY 
Current Price: PKR 15.35
Target Price: PKR 16.30

Feroze1888 Mills Ltd (FML) – BUY 
Current Price: PKR 93.8
Target Price: PKR 137.4

Gharibwal Cement Ltd (GWLC) – BUY 
Current Price: PKR 10.06
Target Price: PKR 25

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 126.0
Target Price: PKR 141.0

Habib Metropolitan Bank (HMB) – BUY 
Current Price: PKR 30.06
Target Price: PKR 43.81

HUB Power Co. (HUBCO) – BUY
Current Price: PKR 73.19
Target Price: PKR 101.05

Interloop Ltd. (ILP) – BUY 
Current Price: PKR 44.6
Target Price: PKR 57.0

Indus Motors (INDU) – BUY 
Current Price: PKR 975.0
Target Price: PKR 1,165.5

Kot Addu Power Co. (KAPCO) – BUY 
Current Price: PKR 34.9
Target Price: PKR 50.0

Kohat Cement Company (KOHC) – BUY 
Current Price: PKR 53.7
Target Price: PKR 87.2

Lotte Chemical Pak Ltd. (LOTCHEM) – BUY 
Current Price: PKR 14.5
Target Price: PKR 20.0

Lucky Cement (LUCK) – BUY 
Current Price: PKR 363.5
Target Price: PKR 516.54

Mari Petroleum Ltd. (MARI) – BUY 
Current Price: PKR   944.8
Target Price: PKR 1,502.6

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR   169.8
Target Price: PKR 211.3

Meezan Bank Limited (MEBL) – BUY 
Current Price: PKR 73.46
Target Price: PKR 115.80

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR 17.8
Target Price: PKR 22.90

Millat Tractors Limited (MTL) – BUY 
Current Price: PKR 712.5
Target Price: PKR 811.8

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 33.5
Target Price: PKR 46.8

Nishat Chunian Limited (NCL) – BUY 
Current Price: PKR 37.1
Target Price: PKR 45.1

Nishat Chunian Power Limited (NCPL) – BUY 
Current Price: PKR 16.8
Target Price: PKR 29.0

Nishat Mills (NML) – BUY 
Current Price: PKR 87.6
Target Price: PKR 125.3

Nishat Power Limited (NPL) – BUY 
Current Price: PKR 22.0
Target Price: PKR 33.3

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 124.6
Target Price: PKR 190

Pakistan Oilfields (POL) – BUY 
Current Price: PKR 366.9
Target Price: PKR 469.2

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 136.3
Target Price: PKR 208

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 173.16
Target Price: PKR 275.08

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 168.8
Target Price: PKR 189.00

Sui Northern Gas Pipeline (SNGP) – BUY 
Current Price: PKR 65.9
Target Price: PKR 78.4

United Bank Limited (UBL) – BUY 
Current Price: PKR 139.04
Target Price: PKR 154.60

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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