Pakistan Stock Exchange (PSX) Weekly Analysis 6 July, 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: LUCK, OGDC, MCB, TRG, SHFA, PTC, KTML, KEL, and PSO.

Top losers of last week were: JLICL, IDYM, JDWS, BNWM and AGIL.

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

The Pakistan Stock Exchange (PSX) market index closed the first week of FY21 at 35,051pts - +3.28% WoW with almost all sectors closing in green vindicating strong investor confidence (Avg. volumes for the week stands at 250.8mn shares vs. 176.8mn in the previous week). The benchmark KSE-100 Index closed at 35,051 levels by gaining 1112 points or 3.28%. While KSE-30 index closed on 15,203 by gaining 523 points or 3.56 %.

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


  • The State Bank announcement of cut in policy rate by another 100 basis points to 7pc provided the ground for investors to deploy funds in equities as it increased the relative attractiveness of stocks over the other asset classes such as fixed income instruments and National Saving Schemes
  • FBR gets fourth new chair in two years. the federal government appointed Mr. Muhammad Javed Ghani as Chairman, Federal Board of Revenue (FBR) in replacement of Nausheen Amjad, for a period of three months
  • On the domestic front, approval of the federal budget from the parliament and inflows from the World Bank and Chinese banks boosted investors sentiments, thus fuelling buying interest at the bourse
  • Increase in international oil prices and inflation remaining in line with expectations also went a long way in keeping investors satisfied
  • Trading kicked-off Monday on a rather terrifying note as armed men tried to force their way into the Pakistan Stock Exchange (PSX) building during early hours of the day
  • Pakistan received the much-awaited $1.3 billion commercial loan from China on Tuesday, which helped Islamabad achieve the foreign exchange reserve target of around $12 billion by the end of fiscal year 2019-20
  • The approval of federal budget 2020-21 in the late hours of Monday also proved positive for the bourse and lent further support to the uptrend
  • KSE-100 recorded gains of nearly 470 points on back of rising global oil prices, which prompted a rally in oil and marketing scrips
  • The inflation rate rose 8.6% in June
  • OGDCL starting commercial production of gas from its exploratory wells Thal East-1 and Bhambhra-1, located in district Sukkur (Sindh)
  • Participation picked up during the week as average volumes jumped 42% to settle at 251 million, while average value traded surged 45% to clock-in at $ 51 million
  • In terms of sectors, positive contributions came from commercial banks (176 points), cements (170 points), oil and gas exploration companies (140 points), fertiliser (136 points) and technology and communication (85 points)
  • Meanwhile, automobile parts and accessories (7 points) and textile spinning (4 points) were among the sectors that dragged the index lower
  • ECC approved hike in K-Electric tariff, Shanghai Electric renewed intention to buy K-Electric
  • Foreign exchange reserves held by the central bank increased $1.3 billion to $11.2 billion
  • Oil and gas marketing companies were relieved as their inventory losses were minimized by the government’s announcement to pass on some of the impact of increasing energy prices to end consumers by increasing petrol price by Rs25 per litre which was followed by the potential reduction of Petroleum Development Levy by Rs10 a litre
  • The surge in urea offtake to 76pc month-on-month in June reinvigorated investors’ interest in fertiliser
  • Going forward, most market strategists expected the bull run to continue mainly as the government was easing the lockdown in the face of flattening the fatalities curve, slowing pace of new Covid-19 cases and faster recoveries
  • The ECC took also up the proposal submitted by Ministry of Industries and Production and allowed provision of gas at Rs 756 MMBTU to two shutdown plants at SNGPL; namely Agritech and Fatima Fertilizer, for three months w.e.f. July-September
  • Government of Pakistan raised profit rates on national saving certificates by smaller margins with effect from July 2, 2020. As per official sources, the profit rate on behbood, pension and shuddaa has been increased by 12 basis points to 9.96 percent
  • The Federal Board of Revenue (FBR) announced that it has successfully achieved a target of Rs. 4 trillion in terms of gross revenue despite coronavirus struggles
  • The Organic Meat Company Limited is set to go public with its Initial Public Offering and subsequent listing on Pakistan Stock Exchange, as an exporting and processing company of world class halal beef and mutton meat. This will be the very first IPO of the fiscal year 2020-21
  • Insurance companies picked up USD 17.5 million worth of stocks, followed by USD 9.5 million worth of stocks purchased by local companies
  • On the contrary, Individual investors sold stocks worth USD 7 million during the week


Following are few BUY recommendations:

Allied Bank Ltd. (ABL) – BUY 
Current Price: PKR 75.80
Target Price: PKR 88.90

Attock Petroleum (APL) – BUY 
Current Price: PKR 299.44
Target Price: PKR 394.40

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 35.83
Target Price: PKR 49.00

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 52.48
Target Price: PKR  65.00

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 33.53
Target Price: PKR  38.0

Bank of Punjab (BOP) – BUY 
Current Price: PKR 8.50
Target Price: PKR 13.90

DG Khan Cement (DGKC) – BUY 
Current Price: PKR 90.45
Target Price: PKR 106.85

ENGRO Corporation (ENGRO) – BUY 
Current Price: PKR 298.16
Target Price: PKR 331.10

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 27.40
Target Price: PKR 35.75

Fauji Fertilizer Bin Qasim (FFBL) – BUY 
Current Price: PKR 16.17
Target Price: PKR 24.4

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 112.14
Target Price: PKR 130.0

Gul Ahmad Textile Limited (GATM) – BUY 
Current Price: PKR 29.39
Target Price: PKR 47.48

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 97.84
Target Price: PKR 154.40

Habib Metropolitan Bank (HMB) – BUY 
Current Price: PKR 27.70
Target Price: PKR 45.70

HUB Power Co. (HUBCO) – BUY 
Current Price: PKR 73.68
Target Price: PKR 101.05

Indus Motors (INDU) – BUY 
Current Price: PKR 993.96
Target Price: PKR 1,259

Kot Addu Power Co. (KAPCO) – BUY 
Current Price: PKR 20.25
Target Price: PKR 31.22

Lucky Cement (LUCK) – BUY 
Current Price: PKR 489.76
Target Price: PKR 555.32

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR   161.42
Target Price: PKR 185.40

Meezan Bank Limited (MEBL) – BUY 
Current Price: PKR   67.57
Target Price: PKR 124.60

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR   27.01
Target Price: PKR 38.27

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 26.23
Target Price: PKR 45.60

Nishat Chunian Limited (NCL) – BUY 
Current Price: PKR 33.54
Target Price: PKR 47.5

Nishat Mills (NML) – BUY 
Current Price: PKR 79.63
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 354.39
Target Price: PKR 379.00

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 89.99
Target Price: PKR 143.40

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 159.35
Target Price: PKR 203.50

United Bank Limited (UBL) – BUY 
Current Price: PKR 104.92
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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