Pakistan Stock Exchange (PSX) Weekly Analysis 5 April, 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:  HUBC, LUCK, MARI, HBL, KAPCO, PIOC, MLCF, CHCC, ASTL and UBL.

Top losers of last week were: FCCL, APL, DGKC, HASCOL and FCEPL.

Volume leaders of last week were: MLCF, HASCOL, KEL, UNITY, and OGDC.

The Pakistan Stock Exchange (PSX) market index following three weeks of bearish trade as the KSE-100 index rebounded with a 12.5% jump – the highest weekly return. The benchmark KSE-100 Index closed at 31,622 levels by gaining 3,512 points or 12.49 %. While KSE-30 index closed on 14,015 by gaining 1,695 points or 13.75%.

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


  • The spectacular performance by the stock markets over the week was a result of recovering in oil prices, the relief package announced by the Prime Minister for the construction industry as well as fall in CPI figures to 10.2%
  • Investors cheered measures announced by the government to soften the blow to the economy from the coronavirus pandemic, which fuelled a rally at the bourse
  • The Economic Coordination Committee (ECC) approved a Rs1.2-trillion economic relief package to shield the economy from adverse effects of the coronavirus pandemic
  • Towards the end of the week President Trump’s announcement of a possible agreement between Saudi Arabia and Russia to cut production also sent oil prices soaring (WTI up 18% week-on-week) and thereby E&P stocks
  • Move towards a truce between Saudi Arabia and Russia on the intervention of President Trump saw massive recovery in international oil prices which translated into three local heavyweight exploration and production (E&P) stocks, POL, OGDCL and PPL hitting their upper circuits on several trading sessions
  • The euphoria was seen on back of prime minister’s assurance to the construction sector for an economic relief package coupled with Moody’s rating agency’s upbeat statement about measures taken by the State Bank of Pakistan to cut the key policy rate and cushion banks’ asset quality and lending business, which sparked institutional interest
  • Participation picked up as average volumes jumped 52% week-on-week to 228 million, while average value surged 66% week-on-week to $46 million
  • In terms of sectors, contributions came from commercial banks (up 764 points), oil and gas exploration companies (550 points), and cement (537 points)
  • The week was also marked by upsurge in prices of cement stocks across the board in anticipation of the incentive package for the construction industry which the prime minister said he would announce by the weekend
  • Foreign selling continued this week clocking-in at $36.1 million compared to a net sell of $13.7 million last week. Selling was witnessed in E&Ps ($13.5 million) and commercial banks ($8 million). On the domestic front, major buying was reported by individuals ($13 million) and funds ($10.3 million)
  • Inflation rate dropped to 10.2% in March
  • Moody’s sees Pakistan growth rates sliding to 2%
  • Demand for electricity, gas, oil drops dramatically
  • The Govt of Pakistan and World Bank signed a $200 million project for the COVID-19 response which will be utilized for emergency preparedness/response, emergency cash transfers to poor, emergency food supplies for quarantined populations, mitigation of impacts in education
  • The government offered up to Rs100 billion packages to the industrial sector as support following the current challenging situation, created due to COVID- 19 pandemic
  • Minister for Planning and Development, Asad Umar said that the Sensitive price indicator increase, the first time in more than a year has fallen to single-digit 9.27% which was the lowest increase in 14 months
  • The Oil and Gas Regulatory Authority (OGRA) on Tuesday issued a price-revision notification of Liquefied Petroleum Gas (LPG) for the month of April, as per which the authority reduced the locally produced LPG price by Rs 462.78 per cylinder of 11.8 kilograms
  • Adviser to Prime Minister for Commerce and Textile, Abdul Razak Dawood has said that the government had offered up to Rs100 billion packages to the industrial sector as a support following current challenging situation, created due to COVID- 19 pandemic
  • The sale and production of cars dipped by 43.37 percent and 45.83 percent respectively during eight months of the financial year 2019-20 compared to the corresponding period of last year

Following are few BUY recommendations:

Allied Bank Ltd. (ABL) – BUY 
Current Price: PKR 82.79
Target Price: PKR 120.7

Attock Cement Ltd. (ACPL) – BUY 
Current Price: PKR 106.54
Target Price: PKR 142.6

Askari Bank (AKBL) – BUY 
Current Price: PKR 14.43
Target Price: PKR 28.4

Attock Petroleum (APL) – BUY 
Current Price: PKR 278.10
Target Price: PKR 433.0

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 31.82
Target Price: PKR 49.0

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 57.83
Target Price: PKR  85.30

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 35.78
Target Price: PKR  60.1

Bank of Punjab (BOP) – BUY 
Current Price: PKR 8.25
Target Price: PKR 15.8

Engro Fertilizer (EFERT) – BUY 
Current Price: PKR 57.39
Target Price: PKR 73.0

Engro Corporations (ENGRO) – BUY 
Current Price: PKR 277.28
Target Price: PKR 331.10

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 23.51
Target Price: PKR 35.75

Fauji Fertilizer Bin Qasim (FFBL) – BUY 
Current Price: PKR 14.29
Target Price: PKR 24.4

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 92.96
Target Price: PKR 130.0

Feroze 1888 Mills Ltd. (FML) – BUY 
Current Price: PKR 80.13
Target Price: PKR 133.9

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 108.90
Target Price: PKR 197.9

Habib Metropolitan Bank (HMB) – BUY 
Current Price: PKR 31.25
Target Price: PKR 47.19

HUB Power Co. (HUBCO) – BUY 
Current Price: PKR 76.38
Target Price: PKR 101.05

ICI Pakistan Limited (ICI) – BUY 
Current Price: PKR 591.63
Target Price: PKR 769.0

Interloop Limited (ILP) – BUY 
Current Price: PKR 42.80
Target Price: PKR 67.7

Indus Motors (INDU) – BUY 
Current Price: PKR 779.92
Target Price: PKR 1,426.6

Kot Addu Power Co. (KAPCO) – BUY 
Current Price: PKR 22.07
Target Price: PKR 46.8

Lotte Chemical Pak Ltd. (LOTCHEM) – BUY 
Current Price: PKR 10.53
Target Price: PKR 23.0

Lucky Cement (LUCK) – BUY 
Current Price: PKR 410.73
Target Price: PKR 555.32

Mari Petroleum Ltd. (MARI) – BUY 
Current Price: PKR   1,058.98
Target Price: PKR 1,501.8

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR   153.87
Target Price: PKR 224

Meezan Bank Limited (MEBL) – BUY 
Current Price: PKR 65.88
Target Price: PKR 115.80

Millat Tractors Limited (MTL) – BUY 
Current Price: PKR 574.44
Target Price: PKR 756.5

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 30.81
Target Price: PKR 54.3

Nishat Chunian Limited (NCL) – BUY 
Current Price: PKR 30.44
Target Price: PKR 47.5

Nishat Chunian Power Limited (NCPL) – BUY 
Current Price: PKR 13.79
Target Price: PKR 32.1

Nishat Mills (NML) – BUY 
Current Price: PKR 65.36
Target Price: PKR 134.8

Nishat Power Limited (NPL) – BUY 
Current Price: PKR 22.00
Target Price: PKR 37.5

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 88.17
Target Price: PKR 190

Pakistan Oilfields (POL) – BUY 
Current Price: PKR 299.57
Target Price: PKR 489

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 83.78
Target Price: PKR 171.9

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 152.22
Target Price: PKR 216.60

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 138.40
Target Price: PKR 262.7

United Bank Limited (UBL) – BUY 
Current Price: PKR 112.76
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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