Pakistan Stock Exchange (PSX) Weekly Analysis 18 May, 2020

BUY recommendations are:  ABL, APL, ASTL, BAHL, BAFL, BOP, DGKC, ENGRO, FATIMA, FFBL, FFC, GATM, HBL, HMB, HUBCO, INDU, KAPCO, LUCK, MCB, MEBL, MLCF, NBP, NCL, NML, OGDC, POL, PPL, PSO, and UBL.

Top gainers of last week were: FFC, MARI, LUCK, NESTLE, TRG, YOUW, CHCC, EFUG, FATIMA and OGDC.

Top losers of last week were: BAHL, SNGP, ABL, INDU, IDYM, HMM, PMPK, SNGP, HUBC, and PAKT.

Volume leaders of last week were: WTL, MLCF, UNITY, TRG, and HASCOL.

The Pakistan Stock Exchange (PSX) market index witnessed a phenomenal week as the index managed to post gains in all five sessions – a feat seen after 26 weeks. The benchmark KSE-100 Index closed at 34,008 levels by gaining 740 points or 2.23 per cent. While KSE-30 index closed on 14,904 by gaining 284 points or 1.94 percent.

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


  • State Bank of Pakistan slashes interest rate by 100bps to 8% in monetary policy announced on 15th May, 2020
  • Moody’s report was also released this week where the rating agency put Pakistan under review for downgrade, which had little impact on the local bourse in the outgoing week
  • Participation picked up as volumes were up 15% week-on-week to 219 million shares, while value traded dipped 21% week-on-week to $40.3 million
  • Investors were euphoric over the easing lockdown as businesses were allowed to once again resume activities
  • Prime Minister Imran Khan directed the government to expedite construction work on the Diamer-Bhasha dam, which drove investors’ interest in cement and steel sectors
  • Rs442 billion agreement for construction of Diamer-Bhasha dam was signed
  • Market players began accumulating fertiliser and tractor companies’ stocks, however, the uptrend could not be sustained because the investors’ joy over the relief package subsided soon afterwards
  • The index trimmed some gains as a surge in global crude oil prices coupled with concern over growing fiscal deficit and negative economic growth dented investors’ sentiment
  • Contribution to the upside was led by oil and gas exploration companies (192 points), cements (177 points), fertiliser (148 points), food and personal care products (61 points), and technology and communication (57 points)
  • Foreigners offloaded stocks worth of $10.91 million compared to a net sell of $17.82 million last week. Major selling was witnessed in commercial banks ($2.89 million) and power generation and distribution ($2.4 million)
  • On the local front, buying was reported by individuals ($5.56 million) followed by mutual funds ($4.97 million)
  • Fiscal deficit to hit at least 9.4%, govt likely to unveil tax-free budget for 2020-21
  • Car sales nosedived by 52% in July-April
  • According to a research report by Arif Habib Limited, the stock markets gained respite after the easing of lockdown by the federal and provincial governments led to increase in domestic business activity and opening of industries
  • The outcome of the MSCI EM index review, wherein Pakistan’s status in EM index remained unchanged, also helped in boosting investors’ confidence
  • Saudi Arabia announcing to deepen oil cuts to support prices amid weak demand (E&Ps: +4.3%WoW)
  • Zero auto sales recorded in Apr’20 due to lock down during the month
  • PkR50bn agricultural package announced that includes PkR37bn subsidy on fertilizers (Fertilizers: +4.1%WoW)
  • A major announcement in the outgoing week, FEROZ (+43.4%WoW) disclosed that its subsidiary BF Biosciences Ltd (BFBL) has signed a non-exclusive license agreement with Gilead Sciences Inc for manufacturing and sellingremdesivir — an experimental antiviral drug that is being used to treat coronavirus patients

Following are few BUY recommendations:

Allied Bank Ltd. (ABL) – BUY 
Current Price: PKR 72.34
Target Price: PKR 88.90

Attock Petroleum (APL) – BUY 
Current Price: PKR 275.51
Target Price: PKR 394.40

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 37.12
Target Price: PKR 49.00

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 52.57
Target Price: PKR  65.00

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 29.96
Target Price: PKR  38.0

Bank of Punjab (BOP) – BUY 
Current Price: PKR 9.30
Target Price: PKR 13.90

DG Khan Cement (DGKC) – BUY 
Current Price: PKR 84.68
Target Price: PKR 106.85

ENGRO Corporation (ENGRO) – BUY 
Current Price: PKR 306.17
Target Price: PKR 331.10

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 24.90
Target Price: PKR 35.75

Fauji Fertilizer Bin Qasim (FFBL) – BUY 
Current Price: PKR 17.91
Target Price: PKR 24.4

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 111.56
Target Price: PKR 130.0

Gul Ahmad Textile Limited (GATM) – BUY 
Current Price: PKR 27.24
Target Price: PKR 47.48

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 98.01
Target Price: PKR 154.40

Habib Metropolitan Bank (HMB) – BUY 
Current Price: PKR 29.21
Target Price: PKR 45.70

HUB Power Co. (HUBCO) – BUY 
Current Price: PKR 77.77
Target Price: PKR 101.05

Indus Motors (INDU) – BUY 
Current Price: PKR 903.41
Target Price: PKR 1,259

Kot Addu Power Co. (KAPCO) – BUY 
Current Price: PKR 22.13
Target Price: PKR 31.22

Lucky Cement (LUCK) – BUY 
Current Price: PKR 458.56
Target Price: PKR 555.32

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR   152.83
Target Price: PKR 185.40

Meezan Bank Limited (MEBL) – BUY 
Current Price: PKR   63.08
Target Price: PKR 124.60

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR   26.78
Target Price: PKR 38.27

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 27.26
Target Price: PKR 45.60

Nishat Chunian Limited (NCL) – BUY 
Current Price: PKR 31.47
Target Price: PKR 47.5

Nishat Mills (NML) – BUY 
Current Price: PKR 74.93
Target Price: PKR 134.8

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 106.65
Target Price: PKR 190

Pakistan Oilfields (POL) – BUY 
Current Price: PKR 320.12
Target Price: PKR 379.00

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 91.98
Target Price: PKR 143.40

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 162.89
Target Price: PKR 203.50

United Bank Limited (UBL) – BUY 
Current Price: PKR 101.66
Target Price: PKR 167.20

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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