Pakistan Stock Exchange (PSX) Weekly Analysis 13 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: HBL, PPL, UBL, NBP, CHCC, AKBL, and INDU.

Top losers of last week were: ANL, FCEPL, DAWH, ABOT, and IDYM.

Volume leaders of last week were: TRG, PAEL, MLCF, HASCOL, and LOTCHEM.

The Pakistan Stock Exchange (PSX) market index, the winning streak continued for the second successive week on back higher recovery in Covid-19 patients. The benchmark KSE-100 Index closed at 36,190 levels by gaining 1,139 points or 3.25%. While KSE-30 index closed on 15,694 by gaining 491 points or 3.23 %.

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


  • A jump in the country’s foreign exchange reserves due to materialization of inflows from international financial institutions in the country kept investor sentiments upbeat, which also reflected in improving participation
  • Reduction in mark-up by the central bank on Long Term Financing Facility (from 6% to 5%) and Temporary Economic Refinance Facility (from 7% to 5%) also lent support to the index
  • Participants cheered positive data regarding cement and OMCs’ sales and improvement in trade deficit in the previous fiscal year
  • Positive news flows from construction sector acted as a catalyst for the index, which was reflected in the higher volumes during the session
  • Despite gold prices hitting an all-time high in Pakistan and soaring to a nine-year high in world markets, the investors in the domestic market remained undeterred
  • Buying interest in oil stocks was seen on the back of uptrend in international crude prices as the sector attracted substantial investment
  • Announcement of a government housing scheme also generated buying activity in the cement sector
  • The week witnessed 39% week-on-week higher volumes, where one single trading session marked almost six-month high volume at 467 million shares
  • Participation picked up as average volumes surged 39% week-on-week to settle at 349 million shares while average value traded jumped 44% to clock-in at $74 million
  • In terms of sectors, positive contributions came from commercial banks (495 points), cement (141 points), oil and gas exploration companies (135 points), automobile assembler (82 points) and oil and gas marketing companies (69 points)
  • On the other hand, power generation and distribution (23 points) and fertiliser (17 points) sector stocks dragged the index lower
  • Foreign selling continued this week clocking-in at $9.5 million compared to a net sell of $20.5 million last week. Selling was witnessed in commercial banks ($2.9 million) and cement ($2.3 million)
  • On the domestic front, major buying was reported by insurance companies ($4.6 million) and companies ($2.8 million)
  • OGDC injected development well Mela # 07 in production stream
  • Cement makers increased price by Rs20 a bag
  • PIA resumed UAE flights
  • The Organic Meat Company Limited raised Rs800 million by offering 40 million shares
  • K-Electric to get more supply from national grid to control ongoing load-shedding
  • The Organic Meat Company Limited (TOMC) closed its Book Building successfully. The company received total participation of Rs. 1,371,162,584 against an issue size of Rs. 720,000,000 at the floor price of Rs. 18 per share. The issue has been oversubscribed by 1.9x
  • German Fashion House Hugo Boss placed its first order of sportswear to a Pakistani company
  • DG Khan Cement won cement export orders to Philippines
  • The U.S. Department of Transportation said it has revoked permission for Pakistan International Airlines (PIA) to conduct charter flights to the United States, citing Federal Aviation Administration (FAA) concerns over Pakistani pilot certifications
  • Insurance Companies picked up USD 4.5 million worth of stocks, followed by USD 2.7 million worth of stocks purchased by Local Companies
  • Pakistan witnessed an inflow of $15.11 million by foreign investors via Special Convertible Rupee Account (SCRA) in government debt securities in the first three days of FY21
  • Pakistan's Forex Reserves increased by USD 819.10 Million or 4.56% and the total liquid foreign reserves held by the country stood at USD 18,790.10 Million on Jul 03, 2020
  • Sazgar Engineering Works Limited has released the Production and Sales data for its three-wheelers, including Auto Rickshaw for the month of June 2020
  • The SBP extended deadline for consumers, small and medium businesses to apply for a one-year moratorium on loan repayment till September 30th after recording freeze on nearly PkR600bn of principal amounts
  • The State Bank slashed applicable rates for two refinance schemes to 5% from 7% to boost long-term investment both in domestic and export oriented sectors
  • The OICCI’s released the results of its latest Annual Security Survey 2020, covering feedback on the security environment from July 2019 to June 2020, where foreign investors have shown high level of satisfaction on the fast improving security environment in the main business centers of Pakistan, Karachi and Lahore, raising the security satisfaction profile of the two cities  

Following are few BUY recommendations:

Allied Bank Ltd. (ABL) – BUY 
Current Price: PKR 77.99
Target Price: PKR 88.90

Attock Petroleum (APL) – BUY 
Current Price: PKR 308.85
Target Price: PKR 394.40

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 39.02
Target Price: PKR 49.00

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 54.84
Target Price: PKR  65.00

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 36.22
Target Price: PKR  38.0

Bank of Punjab (BOP) – BUY 
Current Price: PKR 9.30
Target Price: PKR 13.90

DG Khan Cement (DGKC) – BUY 
Current Price: PKR 95.97
Target Price: PKR 106.85

ENGRO Corporation (ENGRO) – BUY 
Current Price: PKR 300.90
Target Price: PKR 331.10

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 27.91
Target Price: PKR 35.75

Fauji Fertilizer Bin Qasim (FFBL) – BUY 
Current Price: PKR 16.85
Target Price: PKR 24.4

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 110.52
Target Price: PKR 130.0

Gul Ahmad Textile Limited (GATM) – BUY 
Current Price: PKR 30.31
Target Price: PKR 47.48

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 106.49
Target Price: PKR 154.40

Habib Metropolitan Bank (HMB) – BUY 
Current Price: PKR 29.39
Target Price: PKR 45.70

HUB Power Co. (HUBCO) – BUY 
Current Price: PKR 72.22
Target Price: PKR 101.05

Indus Motors (INDU) – BUY 
Current Price: PKR 1,138.38
Target Price: PKR 1,259

Kot Addu Power Co. (KAPCO) – BUY 
Current Price: PKR 21.09
Target Price: PKR 31.22

Lucky Cement (LUCK) – BUY 
Current Price: PKR 496.41
Target Price: PKR 555.32

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR   165.08
Target Price: PKR 185.40

Meezan Bank Limited (MEBL) – BUY 
Current Price: PKR   73.56
Target Price: PKR 124.60

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR   29.28
Target Price: PKR 38.27

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 30.28
Target Price: PKR 45.60

Nishat Chunian Limited (NCL) – BUY 
Current Price: PKR 35.36
Target Price: PKR 47.5

Nishat Mills (NML) – BUY 
Current Price: PKR 83.97
Target Price: PKR 134.8

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 114.51
Target Price: PKR 190

Pakistan Oilfields (POL) – BUY 
Current Price: PKR 365.04
Target Price: PKR 379.00

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 94.71
Target Price: PKR 143.40

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 164.69
Target Price: PKR 203.50

United Bank Limited (UBL) – BUY 
Current Price: PKR 110.87
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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