Pakistan Stock Exchange (PSX) Weekly Analysis 8 June, 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: MCB, UBL, POL, HBL, and BAHL.

The Pakistan Stock Exchange (PSX) market index witnessed yet another lacklustre week as the government lifted lockdown while cases of the coronavirus in the country continued to soar. The benchmark KSE-100 Index closed at 34,450 levels by increasing 419 points or 1.2 %.

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


  • One theme visible during the week was budget related news and proposals for various sectors, which as always, had an effect on market sentiment. With federal budget announcement scheduled for June 12, 2020, the market is expected to track budget related news flow
  • Rising global oil prices coupled with a revival of international economic activity kept the exploration and production scrips under limelight
  • A low inflation reading of 8.2% for the month of May also encouraged investors to make fresh investments
  • A decline in profit rates by the Central Directorate of National Savings further fueled the rally. For the third time this year, the government slashed profit rates on national saving schemes by 200 basis points to 6.5%
  • On last two days of week, profit-taking was witnessed at the bourse as investors weighed sentiments on continuous faltering of rupee value against the US dollar
  • Participation remained low as average volumes dropped 27% week-on-week to settle at 157 million shares while average value traded also fell 27% to clock-in at $39 million
  • Positive contributions came from commercial banks (401 points), oil and gas exploration companies (78 points), automobile parts and accessories (32 points), textile composite (25 points) and pharmaceuticals (19 points)
  • Negative contribution was led by fertiliser (53 points), power generation and distribution (30 points) and insurance (25 points) stocks
  • Foreign selling continued this week and clocked-in at $15.3 million compared to a net sell of $2.4 million last week. Selling was witnessed in commercial banks ($5 million) and textile composite ($4.4 million). On the domestic front, major buying was reported by companies ($7.4 million) and mutual funds ($6.6 million)
  • Import of Euro-V compliant diesel and petrol products was approved and Rs200 billion were disbursed amongst power entities
  • The government has slashed petroleum prices thrice during the two months, which drastically reduced the cost of production, transportation and finally reduced inflation
  • The Asian Development Bank (ADB) and the Government of Pakistan signed the loan agreement for a $300 million emergency assistance loan initially approved by the bank on 19 May
  • Minister for Industries and Production Hamad Azhar said that government has decided to privatize Pakistan Steel Mills in order to revive and steer it out of losses

Following are few BUY recommendations:

Allied Bank Ltd. (ABL) – BUY 
Current Price: PKR 73.55
Target Price: PKR 88.90

Attock Petroleum (APL) – BUY 
Current Price: PKR 286.68
Target Price: PKR 394.40

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 34.57
Target Price: PKR 49.00

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 54.88
Target Price: PKR  65.00

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 31.71
Target Price: PKR  38.0

Bank of Punjab (BOP) – BUY 
Current Price: PKR 8.74
Target Price: PKR 13.90

DG Khan Cement (DGKC) – BUY 
Current Price: PKR 81.83
Target Price: PKR 106.85

ENGRO Corporation (ENGRO) – BUY 
Current Price: PKR 293.32
Target Price: PKR 331.10

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 27.25
Target Price: PKR 35.75

Fauji Fertilizer Bin Qasim (FFBL) – BUY 
Current Price: PKR 16.84
Target Price: PKR 24.4

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 108.27
Target Price: PKR 130.0

Gul Ahmad Textile Limited (GATM) – BUY 
Current Price: PKR 27.37
Target Price: PKR 47.48

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 100.36
Target Price: PKR 154.40

Habib Metropolitan Bank (HMB) – BUY 
Current Price: PKR 28.00
Target Price: PKR 45.70

HUB Power Co. (HUBCO) – BUY 
Current Price: PKR 76.83
Target Price: PKR 101.05

Indus Motors (INDU) – BUY 
Current Price: PKR 946.70
Target Price: PKR 1,259

Kot Addu Power Co. (KAPCO) – BUY 
Current Price: PKR 23.86
Target Price: PKR 31.22

Lucky Cement (LUCK) – BUY 
Current Price: PKR 451.45
Target Price: PKR 555.32

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR   158.57
Target Price: PKR 185.40

Meezan Bank Limited (MEBL) – BUY 
Current Price: PKR   64.06
Target Price: PKR 124.60

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR   25.93
Target Price: PKR 38.27

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 27.78
Target Price: PKR 45.60

Nishat Chunian Limited (NCL) – BUY 
Current Price: PKR 31.42
Target Price: PKR 47.5

Nishat Mills (NML) – BUY 
Current Price: PKR 75.51
Target Price: PKR 134.8

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 114.64
Target Price: PKR 190

Pakistan Oilfields (POL) – BUY 
Current Price: PKR 340.02
Target Price: PKR 379.00

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 94.34
Target Price: PKR 143.40

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 155.40
Target Price: PKR 203.50

United Bank Limited (UBL) – BUY 
Current Price: PKR 105.19
Target Price: PKR 167.20

Thank you very much for reading this article.

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Written by: Rana Khuram

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