Pakistan Stock Exchange (PSX) Weekly Analysis 2 March, 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, MEBL, NBP, NCL, NCPL, NML, NPL, OGDC, POL, PPL, PSO, SNGP and UBL.

Top gainers of last week were: CHCC, GWLC, MLCF, PIOC and DGKC.

Top losers of last week were: PPL, OGDC, HASCOL, KAPCO, PAEL, HUBC, HBL, and ENGRO.

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

The Pakistan Stock Exchange (PSX) market index witnessed a brutal hammering as the index plunged 5.6%WoW to close at 37,984pts as foreigners trimmed their positions (net sell: US$22.5mn) preferring safer assets amidst impact of spread of Coronavirus outside China on global growth outlook. KSE-100 index closed on 37,984 by losing 2265 points or - 5.63 %. While KSE-30 index closed on 17,478 by losing 1120 point or - 6.02%.

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


  • The coronavirus outbreak that crossed borders into 40 countries and triggered worldwide scare, prompting investors to move from the commodities and stocks into safe havens, gold and bonds
  • The government on Saturday, reduced petrol prices by Rs.5 per litre to provide relief to the consumers. Petrol would now be sold at Rs111.6 per litre with effective from March 1st
  • OGRA reduces local LPG price by Rs 150.04 per 11.8-kg cylinder
  • The local equity bourse depicted the biggest weekly decline since June 16, 2017 in points
  • The Financial Action Task Force (FATF)’s announcement of keeping Pakistan in the grey list also played the role of a catalyst in the market’s bearish close
  • Uncertainty over the International Monetary Fund’s (IMF) next loan tranche also fuelled bearish trade at the PSX
  • Foreign selling continued this week clocking-in at $22.5 million compared to a net sell of $8.6 million last week. Selling was witnessed in commercial banks ($7.6 million) and E&P ($4.8 million). On the domestic front, major buying was reported by insurance companies ($25.3 million) and banks/DFIs ($7.8 million)
  • Investors remained nervous over the resurging political uncertainty after the Punjab assembly refused to extend ex-PM Nawaz Sharif’s bail on medical grounds
  • SBP’s foreign exchange reserves continued to rise by $87m
  • Moody’s released a report focusing on Pakistan’s Banking Sector, which states that the country's continued presence on the list of jurisdictions under increased monitoring is credit negative for its banks
  • Oil and Gas Regulatory Authority (OGRA) granted permission to Hi-Tech Lubricants Limited to proceed to Apply/Acquire No Objection Certificates (NOCs) from concerned departments for setting up of up to a maximum number of 35 Retail Outlets in the KPK Province
  • K-Electric submitted the requests for fuel adjustments to National Electric Power Regulatory Authority (NEPRA), on a monthly and quarterly basis, the hearing for which is expected to be held on March 4, 2020
  • Planning Commission authorizes release of Rs 464.706 billion for development projects
  • Figures released by NCCPL showed that foreign investors dumped USD 22 million worth of stocks during the week with foreign corporates doing bulk of the selling
  • Mutual funds followed suit with a net sell of US$11.6mn
  • US Taliban on verge of signing deal where Pakistan’s contribution was widely acknowledged
  • President Trump praising Pakistan in INDIA – indicative of close relationship between Pakistan
  • Government successfully addressing prices of food items in a bid to pull down inflationary pressures
  • Government gearing up to launch Sukuk-II for PkR200bn to address Circular debt that has reached PkR1.8trn

Following are few BUY recommendations:

Allied Bank (ABL) – BUY 
Current Price: PKR 92.07
Target Price: PKR 120.7

Attock Cement Ltd. (ACPL) – BUY 
Current Price: PKR 96.50
Target Price: PKR 142.6

Askari Bank (AKBL) – BUY 
Current Price: PKR 18.82
Target Price: PKR 26.4

Attock Petroleum (APL) – BUY 
Current Price: PKR 328.74
Target Price: PKR 434.0

Amreli Steel Limited (ASTL) – BUY 
Current Price: PKR 31.31
Target Price: PKR 49.0

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 73.93
Target Price: PKR  97.64

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 46.99
Target Price: PKR  60.3

Bank of Punjab (BOP) – BUY 
Current Price: PKR 12.39
Target Price: PKR 14.8

Engro Fertilizer (EFERT) – BUY 
Current Price: PKR 63.26
Target Price: PKR 83.8

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 24.78
Target Price: PKR 29.98

Fauji Fertilizer Bin Qasim (FFBL) – BUY 
Current Price: PKR 16.66
Target Price: PKR 22.72

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 103.56
Target Price: PKR 116.45

Feroze1888 Mills Ltd (FML) – BUY 
Current Price: PKR 96
Target Price: PKR 137.4

Gharibwal Cement Ltd (GWLC) – BUY 
Current Price: PKR 12.38
Target Price: PKR 25

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 156.79
Target Price: PKR 200.39

Habib Metropolitan Bank (HMB) – BUY 
Current Price: PKR 39.00
Target Price: PKR 47.19

HUB Power Co. (HUBCO) – BUY
Current Price: PKR 90.33
Target Price: PKR 160.83

Interloop Ltd. (ILP) – BUY 
Current Price: PKR 53.14
Target Price: PKR 67.7

Indus Motors (INDU) – BUY 
Current Price: PKR 985.00
Target Price: PKR 1,452.06

Kot Addu Power Co. (KAPCO) – BUY 
Current Price: PKR 23.23
Target Price: PKR 41.93

Kohat Cement Co. (KOHC) – BUY 
Current Price: PKR 94.63
Target Price: PKR 106.6

Lotte Chemical Pak Ltd. (LOTCHEM) – BUY 
Current Price: PKR 11.97
Target Price: PKR 20.0

Lucky Cement (LUCK) – BUY 
Current Price: PKR 489.09
Target Price: PKR 516.54

Mari Petroleum Ltd. (MARI) – BUY 
Current Price: PKR 1,204.51
Target Price: PKR 1,501.8

Muslim Commercial Bank Limited (MCB) – BUY 
Current Price: PKR 195.94
Target Price: PKR 263.7

Meezan Bank Limited (MEBL) – BUY 
Current Price: PKR 99.33
Target Price: PKR 115.80

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 39.29
Target Price: PKR 66.51

Nishat Chunian Limited (NCL) – BUY 
Current Price: PKR 39.08
Target Price: PKR 60.53

Nishat Chunian Power Limited (NCPL) – BUY 
Current Price: PKR 15.14
Target Price: PKR 29.0

Nishat Mills (NML) – BUY 
Current Price: PKR 102.09
Target Price: PKR 125.3

Nishat Power Limited (NPL) – BUY 
Current Price: PKR 23.85
Target Price: PKR 33.3

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 117.62
Target Price: PKR 190

Pakistan Oilfields Ltd. (POL) – BUY 
Current Price: PKR 369.18
Target Price: PKR 447.0

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 110.87
Target Price: PKR 186.7

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 164.87
Target Price: PKR 250.39

Sui Northern Gas Pipeline Ltd. (SNGP) – BUY 
Current Price: PKR 66.33
Target Price: PKR 111.1

United Bank Limited (UBL) – BUY 
Current Price: PKR 166.03
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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