Pakistan Stock Exchange (PSX) Weekly Analysis 27 January, 2020

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

Top gainers of last week were:  FFC, MARI, Colgate Palmolive, NML, CHCC, PIOC and FFBL.

Top losers of last week were:  Engro, OGDC, EFERT, PAKT, HASCOL, APL, and HMB.

Top Volume Leaders of last week were:  MLCF, TRG, WTL, BOP, and EFERT.

The Pakistan Stock Exchange (PSX) market index witnessed another lackluster week shrouded in uncertainty due to lack of positive triggers to provide a direction to the market. The KSE-100 index largely remained flat, closing down by 535 points (1.24 per cent) at 42,633. While KSE-30 index closed on 19,807 by losing -190 points or - 0.95%.

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


  • The range-bound performance of the market may be attributed to lack of potent positive triggers
  • Trading during the week commenced on a negative note attributable to the Oil and Gas Regulatory Authority’s (Ogra) proposal of a gas price hike, which was later delayed by the Economic Coordination Committee (ECC)
  • The government decided to eliminate the Gas Infrastructure Development Cess (GIDC) on the fertiliser sector in a bid to reduce prices of urea which may hurt bottom line of some companies due to different types of gas tariffs
  • Prime Minister Imran Khan, along with key officials of the country, departed for Davos to attend the World Economic Forum which also impacted the direction of the market. During the trip, PM Imran met with many international personalities, including US President Donald Trump
  • The possibility of an early review of Pakistan from the Financial Action Task Force (FATF) also sparked uncertainty at the bourse prompting investors to stay on the sidelines
  • Foreign buying continued this week clocking-in at $4.81 million compared to a net buy of $2.81 million last week. Buying was witnessed in oil and gas marketing companies ($7.73 million) and fertiliser ($1.88 million)
  • A new textile policy is on the cards which could increase textile exports to $25 billion by 2025
  • Oil and Gas Development Company (OGDC) came under the spotlight after the heavyweight exploration and production stock was targeted by rumours of government intending to offer 7pc of its shares in the secondary market at a discount, which pulled the price to its lower lock, dragging the entire market with it. It stabilised only after the Privatisation Commission refuted such rumours and pledged to sell the shares at premium
  • The Economic Coordination Committee meeting made material progress towards issue of energy Sukuk-II worth Rs200 billion
  • Anticipation of higher inflation on the back of recent rise in prices of perishable food items such as wheat and sugar sparked concerns of a delay in the anticipated easing of interest rates
  • Current account deficit narrowed 75%YoY to US$2.15 billion in 1HFY20
  • Foreign investment in treasury bills reaches record US$2.2bn, iii) Incentive package for small electric vehicles, buses on cards (SAZGAR consequently announced launch of EV three wheeler)
  • Half-yearly uplift spending rises to 55pc of allocation
  • Foreigner stood out as net buyers (US$2.8mn) which together with banks (net buy US$2.3mn) absorbed profit taking by Individuals (net sell US$2.2mn) and Insurance (net sell US$2.8mn)

Following are few BUY recommendations:

Allied Bank (ABL) – BUY 
Current Price: PKR 99.00
Target Price: PKR 120.7

Attock Cement Ltd. (ACPL) – BUY 
Current Price: PKR 108.19
Target Price: PKR 142.6

Askari Bank (AKBL) – BUY 
Current Price: PKR 20.61
Target Price: PKR 26.4

Attock Petroleum (APL) – BUY 
Current Price: PKR 346.88
Target Price: PKR 434.0

Amreli Steel Limited (ASTL) – BUY 
Current Price: PKR 35.05
Target Price: PKR 49.0

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 81.80
Target Price: PKR  97.64

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 52.22
Target Price: PKR  60.3

Bank of Punjab (BOP) – BUY 
Current Price: PKR 13.62
Target Price: PKR 14.8

Engro Fertilizer (EFERT) – BUY 
Current Price: PKR 69.28
Target Price: PKR 83.8

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 26.20
Target Price: PKR 35.75

Fauji Fertilizer Bin Qasim (FFBL) – BUY 
Current Price: PKR 20.49
Target Price: PKR 31.34

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 106.63
Target Price: PKR 116.45

Feroze1888 Mills Ltd (FML) – BUY 
Current Price: PKR 98.93
Target Price: PKR 137.4

Gharibwal Cement Ltd (GWLC) – BUY 
Current Price: PKR 13.05
Target Price: PKR 25

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 169.02
Target Price: PKR 200.39

Habib Metropolitan Bank (HMB) – BUY 
Current Price: PKR 38.51
Target Price: PKR 47.19

HUB Power Co. (HUBCO) – BUY
Current Price: PKR 101.80
Target Price: PKR 160.83

Interloop Ltd. (ILP) – BUY 
Current Price: PKR 59.52
Target Price: PKR 67.7

Indus Motors (INDU) – BUY 
Current Price: PKR 1,046.22
Target Price: PKR 1,452.06

Kot Addu Power Co. (KAPCO) – BUY 
Current Price: PKR 29.07
Target Price: PKR 41.93

Kohat Cement Co. (KOHC) – BUY 
Current Price: PKR 83.02
Target Price: PKR 106.6

Lotte Chemical Pak Ltd. (LOTCHEM) – BUY 
Current Price: PKR 14.27
Target Price: PKR 20.0

Lucky Cement (LUCK) – BUY 
Current Price: PKR 496.42
Target Price: PKR 516.54

Mari Petroleum Ltd. (MARI) – BUY 
Current Price: PKR 1,447.15
Target Price: PKR 1,501.8

Muslim Commercial Bank Limited (MCB) – BUY 
Current Price: PKR 224.53
Target Price: PKR 263.7

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 44.77
Target Price: PKR 66.51

Nishat Chunian Limited (NCL) – BUY 
Current Price: PKR 45.95
Target Price: PKR 60.53

Nishat Chunian Power Limited (NCPL) – BUY 
Current Price: PKR 18.25
Target Price: PKR 29.0

Nishat Mills (NML) – BUY 
Current Price: PKR 117.81
Target Price: PKR 125.3

Nishat Power Limited (NPL) – BUY 
Current Price: PKR 26.60
Target Price: PKR 33.3

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 143.71
Target Price: PKR 190

Pakistan Oilfields Ltd. (POL) – BUY 
Current Price: PKR 446.62
Target Price: PKR 489.0

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 149.87
Target Price: PKR 186.7

Sui Northern Gas Pipeline Ltd. (SNGP) – BUY 
Current Price: PKR 79.06
Target Price: PKR 111.1

United Bank Limited (UBL) – BUY 
Current Price: PKR 178.89
Target Price: PKR 204.72

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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