Pakistan Stock Exchange (PSX) Weekly Analysis 22 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: HMM, JLICL, IDYM, PTC, and SYS.

Top losers of last week were: UBL, LUCK, ENGRO, FFC, HUBC, IGIHL, GATM, FFBL, SHEL, and MTL.

Volume leaders of last week were: KEL, UNITY, BAFL, BGL, and JSCL.

The Pakistan Stock Exchange (PSX) market index remained under pressure during the week where a disappointing budget, providing incentives only to a few sectors against investor expectations of broad-based relaxations, resulted in index receiving a battering on first trading session of the week. The benchmark KSE-100 Index closed at 33,439 levels by losing 1,172 points or -3.39  %. While KSE-30 index closed on 14,439 by losing 600 points or - 3.99%.

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


  • The sector which were incentivized in the budget didn't receive a good response as cement and engineering sector witnessed a decline of 5.5%WoW each
  • Political uncertainty took a toll after a member party of ruling coalition announced to part ways
  • Foreigners remained net sellers during the week with net sell standing at USD4.78mn, taking CYTD net sell to USD274.9mn
  • Prime Minister Imran Khan announcing that the lockdown would be further softened but the hotspots will face strict lockdown
  • Pakistan's textile and clothing exports tumbling for the third consecutive month in May'20, falling 36.5%YoY
  • Government unlikely to extend subsidy on urea due to lack of implementation mechanism at least in three provinces
  • Gas companies seeking a surge in gas tariff by PkR85-623/mmbtu
  • Balochistan National Party-Mengal (BNP-M) announcing its decision to quit the ruling coalition at the centre ahead of the vote on the federal budget
  • KSE-100 average traded volumes during the week grew 1.4%WoW to 228.8mn shares where stocks which generated large volumes
  • Contribution to the downside was led by commercial banks (293 points), fertiliser (226 points) and cement (183 points)
  • Textile exports surged 86% in May as lockdown eased
  • Public debt swelled to Rs34.3 trillion in July-April
  • The rise in international oil prices and expectations of JP Morgan and other global funds of the price hitting further high was thought to fuel interest in the underperforming energy sector shares
  • The cabinet committee on energy approved the proposals relating to supply of additional power to Karachi Electric (KE) from the national grid and directed that the technical details may be finalized between the parties by August 15
  • The Asian Development Bank (ADB) and the Government of Pakistan on Friday, signed 3 loan agreements, for $235 million, $500 million, and $75 million, respectively
  • The Beijing-backed Asian Infrastructure Investment Bank (AIIB) approved a loan of $500 million to help Pakistan battle the coronavirus pandemic

Following are few BUY recommendations:

Allied Bank Ltd. (ABL) – BUY 
Current Price: PKR 73.50
Target Price: PKR 88.90

Attock Petroleum (APL) – BUY 
Current Price: PKR 269.65
Target Price: PKR 394.40

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 33.49
Target Price: PKR 49.00

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 52.68
Target Price: PKR  65.00

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 33.89
Target Price: PKR  38.0

Bank of Punjab (BOP) – BUY 
Current Price: PKR 8.38
Target Price: PKR 13.90

DG Khan Cement (DGKC) – BUY 
Current Price: PKR 78.20
Target Price: PKR 106.85

ENGRO Corporation (ENGRO) – BUY 
Current Price: PKR 277.20
Target Price: PKR 331.10

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 25.75
Target Price: PKR 35.75

Fauji Fertilizer Bin Qasim (FFBL) – BUY 
Current Price: PKR 15.19
Target Price: PKR 24.4

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 103.38
Target Price: PKR 130.0

Gul Ahmad Textile Limited (GATM) – BUY 
Current Price: PKR 27.22
Target Price: PKR 47.48

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 98.75
Target Price: PKR 154.40

Habib Metropolitan Bank (HMB) – BUY 
Current Price: PKR 28.10
Target Price: PKR 45.70

HUB Power Co. (HUBCO) – BUY 
Current Price: PKR 70.70
Target Price: PKR 101.05

Indus Motors (INDU) – BUY 
Current Price: PKR 932.79
Target Price: PKR 1,259

Kot Addu Power Co. (KAPCO) – BUY 
Current Price: PKR 19.90
Target Price: PKR 31.22

Lucky Cement (LUCK) – BUY 
Current Price: PKR 439.56
Target Price: PKR 555.32

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR   155.18
Target Price: PKR 185.40

Meezan Bank Limited (MEBL) – BUY 
Current Price: PKR   65.09
Target Price: PKR 124.60

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR   24.70
Target Price: PKR 38.27

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 26.58
Target Price: PKR 45.60

Nishat Chunian Limited (NCL) – BUY 
Current Price: PKR 33.52
Target Price: PKR 47.5

Nishat Mills (NML) – BUY 
Current Price: PKR 74.08
Target Price: PKR 134.8

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 108.85
Target Price: PKR 190

Pakistan Oilfields (POL) – BUY 
Current Price: PKR 345.30
Target Price: PKR 379.00

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 89.39
Target Price: PKR 143.40

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 144.30
Target Price: PKR 203.50

United Bank Limited (UBL) – BUY 
Current Price: PKR 102.29
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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