Pakistan Stock Exchange (PSX) Weekly Analysis 9 December, 2019

BUY recommendations are:   AKBL, APL, BAHL, BAFL, BOP, EFERT, EPCL, FATIMA, FFBL, FFC, FML, GWLC, HMB, HUBCO, INDU, KAPCO, LOTCHEM, LUCK, MARI, MEBL, MTL, NBP, NCL, NCPL, NML, NPL, OGDC, POL, and PPL.

Top gainers of last week were:  PSMC, ABL, KEL, FCCL, HBL, MCB, UBL, BAFL, HUBC and NBP.

Top losers of last week were:  KAPCO, GWLC, HASCOL, ENGRO, and PIOC.

Top Volume Leaders of last week were:  UNITY, KEL, BOP, FCCL, and FFL.

The Pakistan Stock Exchange (PSX) market index witnessed a jubilant week, making it the 6th week in a row to have closed in positive. KSE-100 index closed on 40,732 by gaining 1,444 points or 3.68%. While KSE-30 index closed on 18,599 by gaining 589 points or 3.27%.

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


  • Improved macroeconomic conditions, particularly trade and current account balance, provided the initial push which was followed by Moody's changing Pakistan's outlook, to stable from negative, creating euphoria in the market and particularly banks
  • The Asian Development Bank (ADB) also approved $1.3 billion for Pakistan
  • Though profit-taking and increasing coal prices weighed on cement stocks which dented the overall sentiment as well in second trading session of the week
  • Market gained strength and even overlooked a higher than expectations CPI reading (12.7% vs. expectation of 12.3%), marching on to breach the 40k mark
  • State Bank of Pakistan (SBP) announced to hold auctions of various maturities of the market treasury bills and Pakistan Investment Bonds (PIBs) worth PkR2.85tn in next three months of FY20
  • State Bank of Pakistan paying USD1bn against sukuk (Islamic bonds), which was launched in November 2014 and matured on Dec 2
  • Activity during the week was at record levels with average daily volume standing at 467mn, up 38%WoW while foreigners remained net buyers (Net inflow at USD1.1mn vs. outflow of USD8.1mn last week)
  • Foreign activity may remain muted as we move closer to Christmas for next few weeks
  • Consolidation of the country’s foreign exchange reserves also helped matters as central bank reserves touched an eight-month high at $9.1 billion
  • The inflation figure for November clocked-in at a nine-year high at 12.7%, investors remained unfazed due to other positive economic macros
  • Increasing optimism also brought healthy participation with volumes up 34% week-on-week to an average of 465 million shares per day; touching a 30-month high of 557 million during one single trading session. Meanwhile, average value traded jumped 31% week-on-week to clock-in at $105 million
  • The Federal Bureau of Pakistan has collected Rs334 billion during November 2019. The tax collection has increased by 17% when compared to last year’s collection for the comparative five months
  • The domestic cement dispatches in the first five months of this fiscal reached 16.854 million tons posting a positive growth of 2.91 percent while exports reached 3.608 million tons depicting a growth of 21.46 percent. Overall cement dispatches grew by 5.76 percent to 20.462 million tons

Following are few BUY recommendations:

Askari Bank (AKBL) – BUY 
Current Price: PKR 19.24
Target Price: PKR 26.4

Attock Petroleum (APL) – BUY 
Current Price: PKR 371.96
Target Price: PKR 402.0

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 79.94
Target Price: PKR  97.64

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 47.39
Target Price: PKR  60.3

Bank of Punjab (BOP) – BUY 
Current Price: PKR 12.14
Target Price: PKR 14.8

Engro Fertilizer (EFERT) – BUY 
Current Price: PKR 73.73
Target Price: PKR 83.8

Engro Polymer & Chemical (EPCL) – BUY 
Current Price: PKR 34.34
Target Price: PKR 40.3

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 27.71
Target Price: PKR 35.75

Fauji Fertilizer Bin Qasim (FFBL) – BUY 
Current Price: PKR 23.68
Target Price: PKR 31.34

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 104.71
Target Price: PKR 116.45

Feroze1888 Mills Ltd (FML) – BUY 
Current Price: PKR 101.00
Target Price: PKR 137.4

Gharibwal Cement Ltd (GWLC) – BUY 
Current Price: PKR 15.10
Target Price: PKR 25

Habib Metropolitan Bank (HMB) – BUY 
Current Price: PKR 37.64
Target Price: PKR 43.81

HUB Power Co. (HUBCO) – BUY
Current Price: PKR 94.24
Target Price: PKR 101.05

Indus Motors (INDU) – BUY 
Current Price: PKR 1,226.18
Target Price: PKR 1,452.06

Kot Addu Power Co. (KAPCO) – BUY 
Current Price: PKR 31.62
Target Price: PKR 41.93

Lotte Chemical Pak Ltd. (LOTCHEM) – BUY 
Current Price: PKR 15.19
Target Price: PKR 20.0

Lucky Cement (LUCK) – BUY 
Current Price: PKR 430.48
Target Price: PKR 516.54

Mari Petroleum Ltd. (MARI) – BUY 
Current Price: PKR   1,241.63
Target Price: PKR 1,366.0

Meezan Bank Limited (MEBL) – BUY 
Current Price: PKR 89.67
Target Price: PKR 115.80

Millat Tractors Limited (MTL) – BUY 
Current Price: PKR 694.54
Target Price: PKR 811.8

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 46.30
Target Price: PKR 66.51

Nishat Chunian Limited (NCL) – BUY 
Current Price: PKR 38.31
Target Price: PKR 45.1

Nishat Chunian Power Limited (NCPL) – BUY 
Current Price: PKR 19.49
Target Price: PKR 29.0

Nishat Mills (NML) – BUY 
Current Price: PKR 106.16
Target Price: PKR 125.3

Nishat Power Limited (NPL) – BUY 
Current Price: PKR 29.74
Target Price: PKR 33.3

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 130.67
Target Price: PKR 190

Pakistan Oil Fields (POL) – BUY 
Current Price: PKR 428.20
Target Price: PKR 469.2

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 124.96
Target Price: PKR 186.7

Thank you very much for reading this article.

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Written by: Rana Khuram

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