Pakistan Stock Exchange (PSX) Weekly Analysis 30 March, 2020

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

Top gainers of last week were:  POL, and ATLH.

Top losers of last week were: HBL, ENGRO, UBL and OGDC.

The Pakistan Stock Exchange (PSX) market index continued to be ravaged as the pandemic worsened; however, a financial package announced by the government helped arrest a further downward spiral at the stock market. The benchmark KSE-100 Index closed at 28,110 levels by losing 2,557 points or - 8 %.

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


  • The downtrend came on the back of fears that a global recession was imminent as the coronavirus pandemic forced many countries across the world to go into lockdown
  • The Monetary Policy Committee held an emergency meeting that culminated in a 150bps cut in the policy rate, mere days after a 75bps cut. Cumulatively, the two announcements have brought the policy rate down to 11.00%
  • The government announced a substantial support package of over Rs1.17 trillion to keep the economy afloat. Major takeaways from it were the reduction in petroleum prices by Rs15/litre (aggregating to Rs75bn). It also unveiled Rs100bn of tax refunds to exporters
  • Speculation about likely approval of $1.4 billion in an International Monetary Fund (IMF) loan for economic relief further strengthened investors’ sentiment
  • On the other hand, rupee depreciation against the dollar during the week also maintained pressure at the PSX as the currency fell to record lows before recovering to close at 165.5
  • Participation remained muted with average volumes dipping 8% week-on-week to 239 million shares, while average value traded jumped 41% to clock-in at $55 million
  • In terms of sectors, negative contributions came from commercial banks (down 878 points), oil and gas exploration companies (344 points) and fertilisers (316 points)
  • Foreign selling continued this week clocking-in at $13.7 million compared to a net sell of $19.6 million last week. Selling was witnessed in commercial banks ($5.3 million) and E&P ($3.5 million). On the domestic front, major buying was reported by individuals ($6.2 million) and insurance companies ($5 million)
  • Massive dip in POL products use after lockdown
  • FFC reduced Sona urea price after GIDC waiver
  • ECC approved tariff hike of up to Rs2.89 for K-Electric
  • SBP foreign exchange reserves deteriorated by $690m to $11.9bn
  • State Bank of Pakistan has announced to facilitate customers by providing Doorstep Cheque Collection facility regarding Paper-based Clearing operations in order to combat the potential spread of COVID-19 pandemic
  • Federal Minister for Planning, Development and Special Initiatives Asad Umar has announced that the government is going to have the biggest wheat procurement this year which will inject Rs 280 billion in the market
  • Pakistan's Forex Reserves decreased by USD 637.90 Million or 3.4% and the total liquid foreign reserves held by the country stood at USD 18,105.10 Million on Mar 20, 2020

Following are few BUY recommendations:

Allied Bank Ltd. (ABL) – BUY 
Current Price: PKR 70.01
Target Price: PKR 120.7

Attock Cement Ltd. (ACPL) – BUY 
Current Price: PKR 76.42
Target Price: PKR 142.6

Askari Bank (AKBL) – BUY 
Current Price: PKR 13.83
Target Price: PKR 28.4

Attock Petroleum (APL) – BUY 
Current Price: PKR 219.13
Target Price: PKR 433.0

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 22.66
Target Price: PKR 49.0

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 54.01
Target Price: PKR  85.30

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 30.73
Target Price: PKR  60.1

Bank of Punjab (BOP) – BUY 
Current Price: PKR 7.56
Target Price: PKR 15.8

Engro Fertilizer (EFERT) – BUY 
Current Price: PKR 55.42
Target Price: PKR 73.0

Engro Corporations (ENGRO) – BUY 
Current Price: PKR 259.04
Target Price: PKR 331.10

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 21.68
Target Price: PKR 35.75

Fauji Fertilizer Bin Qasim (FFBL) – BUY 
Current Price: PKR 12.51
Target Price: PKR 24.4

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 88.58
Target Price: PKR 130.0

Feroze 1888 Mills Ltd. (FML) – BUY 
Current Price: PKR 69.50
Target Price: PKR 133.9

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 100.06
Target Price: PKR 197.9

Habib Metropolitan Bank (HMB) – BUY 
Current Price: PKR 29.75
Target Price: PKR 47.19

HUB Power Co. (HUBCO) – BUY 
Current Price: PKR 62.91
Target Price: PKR 101.05

ICI Pakistan Limited (ICI) – BUY 
Current Price: PKR 497.83
Target Price: PKR 769.0

Interloop Limited (ILP) – BUY 
Current Price: PKR 34.43
Target Price: PKR 67.7

Indus Motors (INDU) – BUY 
Current Price: PKR 721.99
Target Price: PKR 1,426.6

Kot Addu Power Co. (KAPCO) – BUY 
Current Price: PKR 16.72
Target Price: PKR 46.8

Lotte Chemical Pak Ltd. (LOTCHEM) – BUY 
Current Price: PKR 9.05
Target Price: PKR 23.0

Lucky Cement (LUCK) – BUY 
Current Price: PKR 331.38
Target Price: PKR 555.32

Mari Petroleum Ltd. (MARI) – BUY 
Current Price: PKR   838.99
Target Price: PKR 1,501.8

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR   142.43
Target Price: PKR 224

Meezan Bank Limited (MEBL) – BUY 
Current Price: PKR 62.28
Target Price: PKR 115.80

Millat Tractors Limited (MTL) – BUY 
Current Price: PKR 500.27
Target Price: PKR 756.5

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 27.77
Target Price: PKR 54.3

Nishat Chunian Limited (NCL) – BUY 
Current Price: PKR 24.76
Target Price: PKR 47.5

Nishat Chunian Power Limited (NCPL) – BUY 
Current Price: PKR 10.54
Target Price: PKR 32.1

Nishat Mills (NML) – BUY 
Current Price: PKR 56.97
Target Price: PKR 134.8

Nishat Power Limited (NPL) – BUY 
Current Price: PKR 19.43
Target Price: PKR 37.5

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 78.26
Target Price: PKR 190

Pakistan Oilfields (POL) – BUY 
Current Price: PKR 257.67
Target Price: PKR 489

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 74.09
Target Price: PKR 171.9

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 125.42
Target Price: PKR 216.60

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 114.47
Target Price: PKR 262.7

United Bank Limited (UBL) – BUY 
Current Price: PKR 95.64
Target Price: PKR 209.4

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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