Pakistan Stock Exchange (PSX) Weekly Analysis 12 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:  OGDC, BAFL, HUBCO, FFC, ABOT, PIOC, CHCC and DGKC.

Top losers of last week were: JDWS, ANL, THALL, PSMC, and HCAR.

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

The Pakistan Stock Exchange (PSX) market index took investors on a roller-coaster ride. The benchmark KSE-100 Index closed at 32,033 levels by gaining 411 points or 1.3 %. While KSE-30 index closed on 14,205 by gaining 190 points.

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


  • The tally of COVID-19 cases crossed 1.5 million globally with more than 94,000 casualties; however, the sentimental impact of the virus on capital markets seemed to fade as the rate of increase in new cases diminished
  • Trading began on a positive note on Monday morning as market participants lauded the announcement of a relief package worth Rs100 billion for the construction sector by Prime Minister Imran Khan at close of the previous week
  • A downward revision of Pakistan’s projected GDP growth by the World Bank and the Asian Development Bank, caused the market to nosedive over 1,000 points
  • The market recovered partially during the next session after crude oil prices soared in hopes of an agreement of significant cut in oil production by OPEC+ followed by possibility of an energy sukuk issuance
  • The bourse turned bearish mid-week as news emerged that the third tranche of International Monetary Fund (IMF) $6 billion bailout package worth $450 million may be delayed
  • Aiding the decline at the bourse, Mexico expressed disagreement over reduction in oil production by OPEC+ which caused oil prices to crash impacting the oil scrips
  • The stock market rallied as IMF announced commitment to lend $1.4 billion to Pakistan in the coming week under the Rapid Financing Instrument to help improve the country’s financial condition and aid in combating the economic impact of the coronavirus
  • The Financial Action Task Force (FATF) granted a five-month grace period to Pakistan to submit its performance report on the remaining benchmarks
  • Oil price crash in the world markets lent support as investors anticipated a cut in the prices of oil products
  • The outgoing week also saw the exploration and production sector outperform the benchmark index by 2.2% as it rose on anticipation of positive results from the meeting of major oil producing nations
  • Following prime minister’s announcement, the cement sector saw a positive movement which persisted for the rest of the week
  • Investor participation remained subdued as traded volume declined by 18% week-on-week to 186 million shares while value traded per day declined by 8% week-on-week to $42 million
  • Sector-wise positive contributions came from oil and gas exploration companies (132 points), cement (78 points), fertiliser (71 points), insurance (70 points) and power generation and distribution (37 points)
  • Sector-wise negative contribution came from automobile parts and accessories (20 points), tobacco (13 points) and textile composite (13 points)
  • Foreign selling persisted with outflow of $16.2 million in the outgoing week. Those related to selling in the stocks of commercial banks in the sum of $5.9m and cement $2.1m. On the domestic front, major buying was reported by individuals amounting to $9.4m and insurance companies $4.0m
  • The State Bank of Pakistan (SBP) announced plans to issue Market Treasury Bills (MTB), Pakistan Investment Bonds (PIB) and Ijara Sukuk (GIS) worth Rs. 3.005 trillion during April – June 2020
  • The government announced Ramazan package worth 2.5 billion rupees for the provision of essential commodities to the masses at reduced rates through the Utility Stores Corporation during the holy month
  • Pakistan pledged three million US dollars towards SAARC COVID-19 Emergency Fund to support regional efforts in the fight against Coronavirus
  • SNGPL allows payment of bill in installments
  • K-Electric defers payment of March bills by a month
  • DRAP allows local manufacturing of chloroquine active ingredient
  • Capital market outflows jump to $3.27bn
  • State Bank allows one-year moratorium on refinancing schemes’ loans

Following are few BUY recommendations:

Allied Bank Ltd. (ABL) – BUY 
Current Price: PKR 84.4
Target Price: PKR 120.7

Attock Cement Ltd. (ACPL) – BUY 
Current Price: PKR 110.5
Target Price: PKR 142.6

Askari Bank (AKBL) – BUY 
Current Price: PKR 15.1
Target Price: PKR 28.4

Attock Petroleum (APL) – BUY 
Current Price: PKR 261.2
Target Price: PKR 433.0

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 31.4
Target Price: PKR 49.0

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 57.06
Target Price: PKR  85.30

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 39.1
Target Price: PKR  60.1

Bank of Punjab (BOP) – BUY 
Current Price: PKR 8.6
Target Price: PKR 15.8

Engro Fertilizer (EFERT) – BUY 
Current Price: PKR 55.9
Target Price: PKR 73.0

Engro Corporations (ENGRO) – BUY 
Current Price: PKR 279.2
Target Price: PKR 331.10

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 23.26
Target Price: PKR 35.75

Fauji Fertilizer Bin Qasim (FFBL) – BUY 
Current Price: PKR 14.4
Target Price: PKR 24.4

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 95.7
Target Price: PKR 130.0

Feroze 1888 Mills Ltd. (FML) – BUY 
Current Price: PKR 77.7
Target Price: PKR 133.9

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 109.1
Target Price: PKR 197.9

Habib Metropolitan Bank (HMB) – BUY 
Current Price: PKR 29.98
Target Price: PKR 47.19

HUB Power Co. (HUBCO) – BUY 
Current Price: PKR 78.8
Target Price: PKR 101.05

ICI Pakistan Limited (ICI) – BUY 
Current Price: PKR 610.0
Target Price: PKR 769.0

Interloop Limited (ILP) – BUY 
Current Price: PKR 40.1
Target Price: PKR 67.7

Indus Motors (INDU) – BUY 
Current Price: PKR 748.6
Target Price: PKR 1,426.6

Kot Addu Power Co. (KAPCO) – BUY 
Current Price: PKR 21.2
Target Price: PKR 46.8

Lotte Chemical Pak Ltd. (LOTCHEM) – BUY 
Current Price: PKR 10.6
Target Price: PKR 23.0

Lucky Cement (LUCK) – BUY 
Current Price: PKR 412.7
Target Price: PKR 555.32

Mari Petroleum Ltd. (MARI) – BUY 
Current Price: PKR   1,050.38
Target Price: PKR 1,501.8

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR   154.5
Target Price: PKR 224

Meezan Bank Limited (MEBL) – BUY 
Current Price: PKR 66.22
Target Price: PKR 115.80

Millat Tractors Limited (MTL) – BUY 
Current Price: PKR 614.9
Target Price: PKR 756.5

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 28.9
Target Price: PKR 54.3

Nishat Chunian Limited (NCL) – BUY 
Current Price: PKR 31.8
Target Price: PKR 47.5

Nishat Chunian Power Limited (NCPL) – BUY 
Current Price: PKR 13.0
Target Price: PKR 32.1

Nishat Mills (NML) – BUY 
Current Price: PKR 66.6
Target Price: PKR 134.8

Nishat Power Limited (NPL) – BUY 
Current Price: PKR 21.0
Target Price: PKR 37.5

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 94.7
Target Price: PKR 190

Pakistan Oilfields (POL) – BUY 
Current Price: PKR 295.7
Target Price: PKR 489

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 86.5
Target Price: PKR 171.9

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 139.23
Target Price: PKR 216.60

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 141.3
Target Price: PKR 262.7

United Bank Limited (UBL) – BUY 
Current Price: PKR 111.4
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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