Pakistan Stock Exchange (PSX) Weekly Analysis 15 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: UBL, LUCK, MEBL, BAFL, and FFC.

Top losers of last week were: HUBC, OGDC, PPL, EFUG, and MARI.

The Pakistan Stock Exchange (PSX) market index remained optimistic in the outgoing week, mainly on the hopes of a favourable budget. The benchmark KSE-100 Index closed at 34,611 levels by increasing 261 points or 0.8 %.

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


  • Minister of Industries and Production, Mr. Hammad Azhar presented the budget for the Fiscal Year 2020-21 in the federal cabinet session, under the presidency of the Prime Minister Imran Khan
  • The total amount for External Receipts in the federal budget for FY21 are estimated at Rs 2.22 trillion, shows a decline of 2% over the revised estimates for budget 2019-20
  • The total amount allocated for Total Capital Receipts, which is the sum of Recoveries of Loans & Advances and Capital Receipts, in the Federal Budget for the Fiscal Year 2020-21 totals 1.54 trillion, i.e. nearly 30.9 percent higher as compared to the revised figures of the previous budget
  • The tax revenue target for the fiscal year 2020-21 is Rs 5464 billion, framing the COVID-19 situation and its subsequent impacts on the battering economy
  • The size of the Public Sector Development Programme (PSDP) for 2020-21 has been set at Rs1.3 trillion, shows the PSDP document issued by the Ministry of Planning, Development and Special Initiatives
  • Increase in international crude oil prices combined with a recovery in regional markets triggered stock buying at the local bourse
  • The market remained optimistic on back of surge in international oil prices by 5% during the week benefitting the E&P sector, expectation of reduction in FED on cement, which rejuvenated investor interest in cement sector and expectation of higher allocation of PSDP, which will increase demand for cement and steel
  • Average daily volumes jumped 44% to 226 million shares, while traded value for the outgoing week increased 26% to $50 million
  • Contribution to the upside was led by commercial banks (up 204 points), cements (92 points), textile composite (64 points), pharmaceuticals (56 points), and fertiliser (55 points)
  • Foreigners offloaded stocks worth of $7.73 million compared to a net sell of $15.27 million last week. Major selling was witnessed in commercial banks ($3.27 million) and all other sectors ($1.94 million)
  • On the local front, buying was reported by individuals ($5.96 million) followed by mutual funds ($2.11 million)
  • Government launched inquiry into oil crisis
  • Government gave Rs1.15tr in tax break in FY20
  • Agriculture sector grew 2.7%
  • Total public debt jumped to 88% of GDP
  • ADB approved $500 million loan to Pakistan and foreign exchange reserves held by SBP fell $266 million to $10.1 billion
  • Investor participation jumped with the average daily volume up by 44pc to 226m shares and traded value mounting 26pc to $50m
  • News flow indicated that Covid-19 had inflicted a loss of Rs3 trillion
  • Total public debt surged to 88pc of GDP
  • Minister for Science and Technology, Chaudhry Fawad Chaudhry announced that Pakistan’s first COVID testing kit has been approved by the Drug Regulatory Authority of Pakistan (DRAP)
  • The Oil and Gas Regulatory Authority (OGRA) on Thursday imposed fine amounting to Rs 40 million on six Oil Marketing Companies (OMCs) for not maintaining the required fuel stocks as per terms and conditions of the licenses awarded to them
  • Germany agreed to provide technical assistance worth four million Euros to Pakistan for the project titled 'Promotion of Renewable Energy and Energy Efficiency Concepts in Cities and Industries

Following are few BUY recommendations:

Allied Bank Ltd. (ABL) – BUY 
Current Price: PKR 74.76
Target Price: PKR 88.90

Attock Petroleum (APL) – BUY 
Current Price: PKR 277.82
Target Price: PKR 394.40

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 35.54
Target Price: PKR 49.00

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 55.57
Target Price: PKR  65.00

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 33.82
Target Price: PKR  38.0

Bank of Punjab (BOP) – BUY 
Current Price: PKR 8.78
Target Price: PKR 13.90

DG Khan Cement (DGKC) – BUY 
Current Price: PKR 83.75
Target Price: PKR 106.85

ENGRO Corporation (ENGRO) – BUY 
Current Price: PKR 287.72
Target Price: PKR 331.10

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 27.48
Target Price: PKR 35.75

Fauji Fertilizer Bin Qasim (FFBL) – BUY 
Current Price: PKR 17.10
Target Price: PKR 24.4

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 107.75
Target Price: PKR 130.0

Gul Ahmad Textile Limited (GATM) – BUY 
Current Price: PKR 31.39
Target Price: PKR 47.48

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 100.65
Target Price: PKR 154.40

Habib Metropolitan Bank (HMB) – BUY 
Current Price: PKR 28.20
Target Price: PKR 45.70

HUB Power Co. (HUBCO) – BUY 
Current Price: PKR 73.72
Target Price: PKR 101.05

Indus Motors (INDU) – BUY 
Current Price: PKR 956.42
Target Price: PKR 1,259

Kot Addu Power Co. (KAPCO) – BUY 
Current Price: PKR 21.11
Target Price: PKR 31.22

Lucky Cement (LUCK) – BUY 
Current Price: PKR 471.61
Target Price: PKR 555.32

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR   161.38
Target Price: PKR 185.40

Meezan Bank Limited (MEBL) – BUY 
Current Price: PKR   70.03
Target Price: PKR 124.60

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR   26.42
Target Price: PKR 38.27

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 27.34
Target Price: PKR 45.60

Nishat Chunian Limited (NCL) – BUY 
Current Price: PKR 33.81
Target Price: PKR 47.5

Nishat Mills (NML) – BUY 
Current Price: PKR 81.08
Target Price: PKR 134.8

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 110.34
Target Price: PKR 190

Pakistan Oilfields (POL) – BUY 
Current Price: PKR 344.94
Target Price: PKR 379.00

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 91.04
Target Price: PKR 143.40

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 155.476
Target Price: PKR 203.50

United Bank Limited (UBL) – BUY 
Current Price: PKR 110.92
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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