Pakistan Stock Exchange (PSX) Weekly Analysis 29 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: FFC, ENGRO, DAWH, EFERT, SHEL, FATIMA, SCBPL, and HUBC.

Top losers of last week were: AGP, BAFL, JLCIL, PTC, and PMPK.

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

The Pakistan Stock Exchange (PSX) market index impressive rally in the outgoing week. The benchmark KSE-100 Index closed at 33,939 levels by gaining 500 points or 1.5 %. While KSE-30 index closed on 14,680 by gaining 241 points or 1.67 %.

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


  • The State Bank of Pakistan (SBP) announced that it is further reducing the policy rate of the country by 1%, bringing it to 7%
  • Petrol prices increased by Rs 25.58 after PM Imran’s approval. Similarly, the per-litre prices of high-speed diesel (HSD), kerosene oil, and light diesel were increased Rs21.31, Rs23.50, and Rs17.84, respectively.
  • The International Monetary Fund (IMF) revised down its growth prediction for Pakistan for fiscal year 2020-21 to 1% from the previous estimate of 2%, which also lent a heavy blow to the investor interest
  • Urea rates likely to increase by Rs200/bag, with gas price in the offing
  • Pakistan received $1 billion in fresh loans from two international financial institutions for overcoming the shortfall in budgeted expenditures, mainly on health and socio-economic fronts, and to better fight the coronavirus pandemic
  • Pakistan has received USD 1.5 billion in COVID 19 and development policy-related assistance from the World Bank, Asian Development Bank and Asian Infrastructure Investment Bank
  • The central bank got $500 million each from the Asian Development Bank (ADB) and the World Bank, which lent much-needed support to the depleting foreign currency reserves
  • Extension in Financial Action Task Force’s (FATF) deadline also provided breather to investors and helped the market recover
  • Participation remained dull as average volumes fell 23% during the week to settle at 177 million shares, while average value traded was down 16% to clock-in at $35 million
  • In terms of sectors, support to the index was lent by fertiliser (326 points), cements (108 points), power generation and distribution (46 points), oil and gas marketing companies (34 points) and auto assemblers (31 points)
  • Foreign selling continued this week clocking-in at $9.9 million compared to a net sell of $4.8 million last week. Selling was witnessed in fertiliser ($2.7 million) and commercial banks ($2.6 million)
  • On the domestic front, major buying was reported by insurance companies ($7 million) and mutual funds ($3.4 million)
  • Cabinet apprived furnace oil imports for K-Electric
  • Rupee fell to a two-and-a-half month low of Rs167.7 against the dollar
  • Current account deficit narrowed 77% to $3.3 billion in 11 months of ongoing fiscal year and gold hit a record all-time high at Rs105,100 per tola
  • Pakistan signed $2.4b agreement for 1,124MW Kohala Hydropower Project which is the biggest ever investment on a single project in the country
  • Elengy seeking developers for its second onshore LNG terminal
  • Remdesivir exempted from duty, advance tax
  • Government deciding to extend fiscal incentives Oxygen-manufacturing companies
  • KSE-100 average traded volumes during the week declined 22.7%WoW to 177mn shares

Following are few BUY recommendations:

Allied Bank Ltd. (ABL) – BUY 
Current Price: PKR 72.55
Target Price: PKR 88.90

Attock Petroleum (APL) – BUY 
Current Price: PKR 289.11
Target Price: PKR 394.40

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 32.57
Target Price: PKR 49.00

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 52.86
Target Price: PKR  65.00

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 32.02
Target Price: PKR  38.0

Bank of Punjab (BOP) – BUY 
Current Price: PKR 8.36
Target Price: PKR 13.90

DG Khan Cement (DGKC) – BUY 
Current Price: PKR 84.27
Target Price: PKR 106.85

ENGRO Corporation (ENGRO) – BUY 
Current Price: PKR 291.71
Target Price: PKR 331.10

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 26.28
Target Price: PKR 35.75

Fauji Fertilizer Bin Qasim (FFBL) – BUY 
Current Price: PKR 15.35
Target Price: PKR 24.4

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 109.44
Target Price: PKR 130.0

Gul Ahmad Textile Limited (GATM) – BUY 
Current Price: PKR 28.45
Target Price: PKR 47.48

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 96.03
Target Price: PKR 154.40

Habib Metropolitan Bank (HMB) – BUY 
Current Price: PKR 27.85
Target Price: PKR 45.70

HUB Power Co. (HUBCO) – BUY 
Current Price: PKR 72.80
Target Price: PKR 101.05

Indus Motors (INDU) – BUY 
Current Price: PKR 956.89
Target Price: PKR 1,259

Kot Addu Power Co. (KAPCO) – BUY 
Current Price: PKR 19.83
Target Price: PKR 31.22

Lucky Cement (LUCK) – BUY 
Current Price: PKR 452.58
Target Price: PKR 555.32

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR   152.70
Target Price: PKR 185.40

Meezan Bank Limited (MEBL) – BUY 
Current Price: PKR   67.03
Target Price: PKR 124.60

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR   25.94
Target Price: PKR 38.27

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 25.53
Target Price: PKR 45.60

Nishat Chunian Limited (NCL) – BUY 
Current Price: PKR 33.07
Target Price: PKR 47.5

Nishat Mills (NML) – BUY 
Current Price: PKR 76.10
Target Price: PKR 134.8

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 109.65
Target Price: PKR 190

Pakistan Oilfields (POL) – BUY 
Current Price: PKR 352.85
Target Price: PKR 379.00

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 87.02
Target Price: PKR 143.40

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 148.50
Target Price: PKR 203.50

United Bank Limited (UBL) – BUY 
Current Price: PKR 101.70
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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