Pakistan Stock Exchange (PSX) Weekly Analysis 10 February, 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, ABL, UBL, HMB and BAHL.

Top losers of last week were:  PPL, OGDC, HBL, PSO, BAFL, ENGRO, APL, LUCK, KEL, and DAWH.

Top Volume Leaders of last week were:  BOP, HASCOL, MLCF, UNITY, and LOTCHEM.

The Pakistan Stock Exchange (PSX) market index fell for fourth week in a row, as investors offloaded stocks amid fears over the epidemic of corona virus which continued to roil global markets. KSE-100 index closed on 40,144 by losing 1,487 points or - 3.57%. While KSE-30 index closed on 19,148 by losing -659 points or - 3.33%.

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


  • The global outbreak of the coronavirus continued to hammer global equities, the brunt of which was also borne by the domestic bourse
  • The high inflation data sent the index into a tailspin, quashing hopes of the market participants for a cut in the benchmark interest rate in the monetary policy to be announced in March 2020
  • Buying was witnessed in exploration and production stocks due to a rise in international oil prices, it was not ample to uplift the bourse
  • Participation remained dull as volumes dipped 11% week-on-week to 168 million, while average value traded decreased 1%, clocking-in at $45 million
  • Foreign selling clocked-in at $14.2 million compared to a net buy of $8 million last week. Selling was witnessed in cement ($7 million) and exploration and production ($5.1 million). On the domestic front, major buying was reported by insurance companies ($13.7 million) and individuals ($7.7 million)
  • The spoiler in the outgoing week was the January inflation which came up at 14.6pc, highest since December 2010
  • The start of the IMF second review amid missed target of revenue collection also caused concerns which were exacerbated by talks of a mini-budget
  • The up­­ coming decision by the FATF on keeping Pakistan in the grey, black or white list also kept investors cautious
  • Sector-wise, the index was dragged down by oil and gas exploration companies, declining by 376 points, commercial banks 241 points, oil and gas marketing companies 150 points, fertiliser 140 points and cement 125 points
  • Local investors were the net buyers, with Insurance Companies making the largest sale at $13.6 million, followed by Individual Investors who sold securities amounting to $7.7 million
  • Cement sector continued to post growth in the month of January as its total dispatches increased to 4.074 million tons, an increase of 11.26 percent from 3.662 million tons during the same month last year
  • The government has released funds amounting to Rs 293.257 million during the first seven months of the current fiscal year to execute petroleum projects under the Public Sector Development Programme (PSDP 2019-20) against the total allocation of Rs581.812 million
  • The Federal government has approved the release of 429.17 billion rupees for ongoing and new social sector uplift projects under its Public Sector Development Programme during the current financial year
  • Pakistani authorities are undergoing a “very tough” second quarterly review with visiting staff of the IMF as the country’s fiscal deficit breached 2.3% of GDP in the first half of 2019-20 despite a tight control on the GoP’s expenditure
  • FBR's domestic tax collection stood at PkR1,341bn during 1HFY20 against PkR1,066bn in the corresponding period of last fiscal year, reflecting an increase of 27%YoY
  • GoP is expecting foreign investment in treasury bills could rise to US$5bn by FY20 end, while the country having attracted US$2.9bn foreign investment in T-bills (including US$25.5m in Pakistan Investment Bonds) in 7MFY20

Following are few BUY recommendations:

Allied Bank (ABL) – BUY 
Current Price: PKR 94.59
Target Price: PKR 120.7

Attock Cement Ltd. (ACPL) – BUY 
Current Price: PKR 98.48
Target Price: PKR 142.6

Askari Bank (AKBL) – BUY 
Current Price: PKR 20.28
Target Price: PKR 26.4

Attock Petroleum (APL) – BUY 
Current Price: PKR 326.50
Target Price: PKR 434.0

Amreli Steel Limited (ASTL) – BUY 
Current Price: PKR 33.05
Target Price: PKR 49.0

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 79.67
Target Price: PKR  97.64

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 48.90
Target Price: PKR  60.3

Bank of Punjab (BOP) – BUY 
Current Price: PKR 12.70
Target Price: PKR 14.8

Engro Fertilizer (EFERT) – BUY 
Current Price: PKR 65.98
Target Price: PKR 83.8

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 24.72
Target Price: PKR 35.75

Fauji Fertilizer Bin Qasim (FFBL) – BUY 
Current Price: PKR 18.12
Target Price: PKR 31.34

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 105.71
Target Price: PKR 116.45

Feroze1888 Mills Ltd (FML) – BUY 
Current Price: PKR 95.69
Target Price: PKR 137.4

Gharibwal Cement Ltd (GWLC) – BUY 
Current Price: PKR 12.31
Target Price: PKR 25

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 156.61
Target Price: PKR 200.39

Habib Metropolitan Bank (HMB) – BUY 
Current Price: PKR 39.25
Target Price: PKR 47.19

HUB Power Co. (HUBCO) – BUY
Current Price: PKR 95.04
Target Price: PKR 160.83

Interloop Ltd. (ILP) – BUY 
Current Price: PKR 56.72
Target Price: PKR 67.7

Indus Motors (INDU) – BUY 
Current Price: PKR 1,040.57
Target Price: PKR 1,452.06

Kot Addu Power Co. (KAPCO) – BUY 
Current Price: PKR 27.32
Target Price: PKR 41.93

Kohat Cement Co. (KOHC) – BUY 
Current Price: PKR 83.92
Target Price: PKR 106.6

Lotte Chemical Pak Ltd. (LOTCHEM) – BUY 
Current Price: PKR 13.92
Target Price: PKR 20.0

Lucky Cement (LUCK) – BUY 
Current Price: PKR 468.81
Target Price: PKR 516.54

Mari Petroleum Ltd. (MARI) – BUY 
Current Price: PKR 1,274.01
Target Price: PKR 1,501.8

Muslim Commercial Bank Limited (MCB) – BUY 
Current Price: PKR 205.99
Target Price: PKR 263.7

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 42.61
Target Price: PKR 66.51

Nishat Chunian Limited (NCL) – BUY 
Current Price: PKR 44.95
Target Price: PKR 60.53

Nishat Chunian Power Limited (NCPL) – BUY 
Current Price: PKR 16.34
Target Price: PKR 29.0

Nishat Mills (NML) – BUY 
Current Price: PKR 103.60
Target Price: PKR 125.3

Nishat Power Limited (NPL) – BUY 
Current Price: PKR 25.10
Target Price: PKR 33.3

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 129.11
Target Price: PKR 190

Pakistan Oilfields Ltd. (POL) – BUY 
Current Price: PKR 409.06
Target Price: PKR 489.0

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 131.64
Target Price: PKR 186.7

Sui Northern Gas Pipeline Ltd. (SNGP) – BUY 
Current Price: PKR 74.28
Target Price: PKR 111.1

United Bank Limited (UBL) – BUY 
Current Price: PKR 169.08
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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