Pakistan Stock Exchange (PSX) Weekly Analysis 27 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: PPL, OGDC, POL, NESTLE, ICI, IDYM, JDWS, EFUG, HCAR, and INDU.

Top losers of last week were: UBL, MCB, BOP, BAFL, DGKC, MLCF, FFC, MEBL, ENGRO, LUCK, SHEL, CHCC, JLICL, and FCCL.

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

The Pakistan Stock Exchange (PSX) market index retreated to the red zone as chronic economic worries fuelled by the Covid-19 pandemic. The benchmark KSE-100 Index closed at 33,837 levels by losing 171 points or 0.50 per cent. While KSE-30 index closed on 14,748 by losing 156 points or 1.05 percent.

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


  • SBP slashing its policy rate by additional 1%, bringing the cumulative easing to 525bps over the past two months
  • Supreme Court ordering the provincial governments to open all shopping malls without any hindrance or obstruction while requiring strict adherence to standard operating procedures (SOPs)
  • The oil sector posted gains owing to a spike in global crude prices during the day. Brent crude was trading at $36.51 per barrel while the US West Texas Intermediate crude was priced at $34
  • Financial sector stocks recorded losses as Moody’s rating agency had put five Pakistani banks under watch for possible ratings downgrade
  • Traded value stood at $36 million, down 15% and volumes came in at 147 million shares, down 11%
  • Technology stocks posted the highest volumes with trading in 34.2 shares, followed by oil and gas marketing companies (19.6 million) and cement firms (18.1 million)
  • Trading volumes decreased to 147.2 million shares compared with Wednesday’s tally of 165.1 million. The value of shares traded during the day was Rs5.9 billion
  • A buying spree was also seen in pharmaceutical stocks as investors pinned hopes on a possible discovery of coronavirus cure. As a result, the pharmaceutical sector remained entirely in the green
  • Participation slowed as average volumes were down 6% week-on-week to 205.5 million, while average value traded increased 18% to $47.5 million
  • Budget to be unveiled on June 12
  • Moody’s puts banks on review amid govt’s weakening support capacity
  • Asian Development Bank (ADB) approved $300 million loan to boost Pakistan’s Covid-19 response
  • National Account Committee (NAC) estimating real GDP growth for FY20 at negative 0.38%YoY, with all sub groups barring agriculture likely to witness declines
  • The government raising ~PkR200bn via Sukuk issue at a comparatively low rate of return of 6M KIBOR minus 10bps (vs. last issuance at 6M KIBOR plus 80bps) through competitive bidding at the PSX
  • Moody’s Investors Service placing on review for downgrade both local and foreign currency deposits highlighting the government’s weakening capacity to support banks in case of need

Following are few BUY recommendations:

Allied Bank Ltd. (ABL) – BUY 
Current Price: PKR 72.11
Target Price: PKR 88.90

Attock Petroleum (APL) – BUY 
Current Price: PKR 271.71
Target Price: PKR 394.40

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 34.70
Target Price: PKR 49.00

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 51.02
Target Price: PKR  65.00

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 29.38
Target Price: PKR  38.0

Bank of Punjab (BOP) – BUY 
Current Price: PKR 8.70
Target Price: PKR 13.90

DG Khan Cement (DGKC) – BUY 
Current Price: PKR 81.11
Target Price: PKR 106.85

ENGRO Corporation (ENGRO) – BUY 
Current Price: PKR 298.73
Target Price: PKR 331.10

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 27.02
Target Price: PKR 35.75

Fauji Fertilizer Bin Qasim (FFBL) – BUY 
Current Price: PKR 17.01
Target Price: PKR 24.4

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 108.76
Target Price: PKR 130.0

Gul Ahmad Textile Limited (GATM) – BUY 
Current Price: PKR 26.74
Target Price: PKR 47.48

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 97.30
Target Price: PKR 154.40

Habib Metropolitan Bank (HMB) – BUY 
Current Price: PKR 28.50
Target Price: PKR 45.70

HUB Power Co. (HUBCO) – BUY 
Current Price: PKR 77.53
Target Price: PKR 101.05

Indus Motors (INDU) – BUY 
Current Price: PKR 981.06
Target Price: PKR 1,259

Kot Addu Power Co. (KAPCO) – BUY 
Current Price: PKR 22.93
Target Price: PKR 31.22

Lucky Cement (LUCK) – BUY 
Current Price: PKR 452.57
Target Price: PKR 555.32

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR   148.97
Target Price: PKR 185.40

Meezan Bank Limited (MEBL) – BUY 
Current Price: PKR   58.82
Target Price: PKR 124.60

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR   25.51
Target Price: PKR 38.27

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 26.81
Target Price: PKR 45.60

Nishat Chunian Limited (NCL) – BUY 
Current Price: PKR 30.79
Target Price: PKR 47.5

Nishat Mills (NML) – BUY 
Current Price: PKR 70.63
Target Price: PKR 134.8

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 112.91
Target Price: PKR 190

Pakistan Oilfields (POL) – BUY 
Current Price: PKR 323.11
Target Price: PKR 379.00

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 93.99
Target Price: PKR 143.40

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 161.23
Target Price: PKR 203.50

United Bank Limited (UBL) – BUY 
Current Price: PKR 98.98
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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