Pakistan Stock Exchange (PSX) Weekly Analysis 20 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:  DAWH, FFC, ENGRO, LUCK, and SEARLE.

Top losers of last week were: NESTLE, UBL, HBL, BAFL, and BAHL.

The Pakistan Stock Exchange (PSX) market index rallied during the outgoing week as a host of positive triggers propelled the KSE-100 index higher. The benchmark KSE-100 Index closed at 32,832 levels by gaining 799 points or 2.5 %.

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


  • The State Bank of Pakistan (SBP) announced its third cut amid the ongoing pandemic crisis, slashing the policy rate by another 200 basis points to 9% given a forecast of slowdown in economic growth and rising inflation, as well as deteriorating conditions. As a result of which, the KSE-100 index sky rocketed over 1,500 points on Friday
  • A World Bank report anticipating recession in Pakistan also fuelled selling pressure at the bourse
  • Fuelling the decline, OPEC+ announced a production cut that proved inefficient to offset the expected drop in demand arising from Covid-19 pandemic which led to a decline in international oil prices
  • The Sindh government announced a more severe lockdown on account of rising cases in the province, which further dampened investor’s sentiments
  • Trading remained subdued during the next three sessions as the government began easing lockdown restrictions due to a rise in number of virus recoveries the overall trend remained positive
  • Downward trend in the international crude prices persisted with prices dropping to a 20 year low of $18.05 per barrel which sparked confusion among the investors regarding whether to book profits or cherry pick oil stocks
  • The International Monetary Fund announced debt relief for Pakistan, a move which failed to woo investors who took cues from international oil and equity markets
  • The International Monetary Fund approved disbursement of $1.4 billion to Pakistan under the Rapid Financing Instrument to address the economic impact of Covid-19
  • The G20 countries announced debt relief for underdeveloped countries including Pakistan which lent further support to the rally
  • Rupee also made a sharp recovery during mid-session and gave investors further incentive to renew investments
  • Investor participation remained subdued as traded volume declined by 4% week-on-week to 178 million shares while value traded per day declined by 10% week-on-week to $37.8 million
  • Sector-wise positive contributions came from fertiliser (405 points), cements (170 points), pharmaceuticals (127 points), textile composite (59 points) and automobile assemblers (51 points)
  • Foreign selling continued this week clocking-in at $14.24 million compared to a net sell of $16.2 million last week. Selling was witnessed in commercial banks ($5.9 million) and cement ($2.1 million). On the domestic front, major buying was reported by individuals ($9.4 million) and insurance companies ($5 million)
  • Major selling was witnessed in commercial banks ($3.79 million) and fertilizer ($3.03 million)
  • On the local front, buying was reported by insurance companies ($6.8 million) followed by companies ($4.53 million)
  • SBP reserves rising $252m to $10.97b and car sales falling 47% during July-March FY20
  • Construction on private sector high-rise projects and public development works in Punjab and Khyber Paktunkhawa partially resumed on Friday after remaining suspended for over a month due to the Covid-19 lockdown
  • The large-scale manufacturing (LSM) output declined by 1.15 per cent year-on-year in February
  • Imports of petroleum products dipped nearly 33 per cent year-on-year in March owing to the sharp reduction in demand for petroleum products as a result of coronavirus pandemic
  • Raising concerns over unseasonal rains in March and Arpil in the country, the UN Food and Agriculture Organisation (FAO) in its report said desert locust outbreak will worsen and eventually harm wheat crop in Pakistan

Following are few BUY recommendations:

Allied Bank Ltd. (ABL) – BUY 
Current Price: PKR 81.0
Target Price: PKR 120.7

Attock Cement Ltd. (ACPL) – BUY 
Current Price: PKR 123.0
Target Price: PKR 142.6

Askari Bank (AKBL) – BUY 
Current Price: PKR 14.39
Target Price: PKR 28.4

Attock Petroleum (APL) – BUY 
Current Price: PKR 257.0
Target Price: PKR 433.0

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 33.27
Target Price: PKR 49.0

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 55.00
Target Price: PKR  85.30

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 35.56
Target Price: PKR  60.1

Bank of Punjab (BOP) – BUY 
Current Price: PKR 9.25
Target Price: PKR 15.8

Engro Fertilizer (EFERT) – BUY 
Current Price: PKR 57.82
Target Price: PKR 73.0

Engro Corporations (ENGRO) – BUY 
Current Price: PKR 294.64
Target Price: PKR 331.10

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 23.31
Target Price: PKR 35.75

Fauji Fertilizer Bin Qasim (FFBL) – BUY 
Current Price: PKR 14.87
Target Price: PKR 24.4

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 103.97
Target Price: PKR 130.0

Feroze 1888 Mills Ltd. (FML) – BUY 
Current Price: PKR 84.0
Target Price: PKR 133.9

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 105.45
Target Price: PKR 197.9

Habib Metropolitan Bank (HMB) – BUY 
Current Price: PKR 28.75
Target Price: PKR 47.19

HUB Power Co. (HUBCO) – BUY 
Current Price: PKR 77.15
Target Price: PKR 101.05

ICI Pakistan Limited (ICI) – BUY 
Current Price: PKR 643.73
Target Price: PKR 769.0

Interloop Limited (ILP) – BUY 
Current Price: PKR 42.02
Target Price: PKR 67.7

Indus Motors (INDU) – BUY 
Current Price: PKR 790.12
Target Price: PKR 1,426.6

Kot Addu Power Co. (KAPCO) – BUY 
Current Price: PKR 21.81
Target Price: PKR 46.8

Lotte Chemical Pak Ltd. (LOTCHEM) – BUY 
Current Price: PKR 10.55
Target Price: PKR 23.0

Lucky Cement (LUCK) – BUY 
Current Price: PKR 439.93
Target Price: PKR 555.32

Mari Petroleum Ltd. (MARI) – BUY 
Current Price: PKR   1,067.45
Target Price: PKR 1,501.8

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR   154.0
Target Price: PKR 224

Meezan Bank Limited (MEBL) – BUY 
Current Price: PKR 63.25
Target Price: PKR 115.80

Millat Tractors Limited (MTL) – BUY 
Current Price: PKR 667.85
Target Price: PKR 756.5

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 29.75
Target Price: PKR 54.3

Nishat Chunian Limited (NCL) – BUY 
Current Price: PKR 34.04
Target Price: PKR 47.5

Nishat Chunian Power Limited (NCPL) – BUY 
Current Price: PKR 12.96
Target Price: PKR 32.1

Nishat Mills (NML) – BUY 
Current Price: PKR 73.10
Target Price: PKR 134.8

Nishat Power Limited (NPL) – BUY 
Current Price: PKR 20.25
Target Price: PKR 37.5

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 96.32
Target Price: PKR 190

Pakistan Oilfields (POL) – BUY 
Current Price: PKR 288.02
Target Price: PKR 489

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 86.54
Target Price: PKR 171.9

Pak Suzuki Motors (PSMC) – BUY 
Current Price: PKR 148.53
Target Price: PKR 216.60

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 144.87
Target Price: PKR 262.7

United Bank Limited (UBL) – BUY 
Current Price: PKR 105.99
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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