Pakistan Stock Exchange (PSX) Weekly Analysis 27 July, 2020

BUY recommendations are:  ABL, ACPL, APL, ASTL, BAFL, BAHL, BOP, EFERT, ENGRO, FATIMA, FFBL, FFC, FML, GATM, HBL, HMB, HUBCO, ICI, KAPCO, KOHC, LUCK, LOTCHEM, MCB, MEBL, MLCF, NBP, NCL, NCPL, NML, NPL, OGDC, POL, PPL, PSO and UBL.

Top gainers of last week were: HGFA, SHEL, SERT, FFBL, MTL, HBL, EFUG, BNWM, INIL, ANL, and KAPCO.

Top losers of last week were: CHCC, PMPK, DGKC, PAEL, MLCF, JLICL, SNGP, PIOC, KEL, and ARPL.

Volume leaders of last week were: HASCOL, UNITY, KEL, MLCF, FCCL, PAEL, KAPCO, LOTCHEM, ANL and TRG.

The Pakistan Stock Exchange (PSX) market index closed in green which marks as the 5th consecutive week. The benchmark KSE-100 Index closed at 37,608 levels by gaining 277 points or 0.74%. While KSE-30 index closed on 16,315 by gaining 167 points or 1.04 %.

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


  • Amongst notable result announcements HBL revealed a positive surprise beating street estimates with an EPS of PKR10.32 in the 1HFY20. Earnings was propelled by a notable jump in NIM’s
  • The Rupee witnessed its lowest level against the Greenback touching PKR168.3 upon payments pressure to fund imports and repayments to international donors. The equity market remained relatively immune to any negative moves as currency weakness post COVID is already built into expectations 
  • Foreign direct investment (FDI) soared by 45 per cent month-on-month to $174.8 million in June
  • Karchi Electric (KE) to get additional 300MW from national grid
  • K-Electric launched a Listed Sukuk of up to PKR 25,000 million (inclusive of PKR 5,000 million Green Shoe option)
  • Mari Petroleum Company Ltd announced gas discovery at exploratory well Hilal-1 in Mari D&P Lease Area, Daharki, District Ghotki in Sindh
  • SBP doubles financing for wind, solar energy
  • Current account deficit in Jun’20 clocking in at US$96mn, down 90% YoY, taking the full year CAD to US$2.9bn, down 78%YoY
  • LSM declining 25% YoY in May’20
  • $750m agreements signed with WB, AIIB under RISE programme
  • GoP considering to withdraw generalized subsidies, and increasing electricity tariff to pass-on the impact
  • Formulation of Oil Refining and Marketing Policy 2020
  • Major board meetings in the upcoming week include: FFC and EFERT
  • Developments regarding the Diamer-Bhasha Dam and the housing scheme spurred buying interest in cement stocks
  • The news of declining Covid-19 cases and deaths also boosted investor confidence
  • Participation dipped marginally as average volumes were down 3% week-on-week to settle at 413 million shares, while average value traded dropped 2% to clock-in at $97 million
  • Positive contributions came from commercial banks (253 points), power generation and distribution (76 points), automobile assembler (31 points), textile composite (28 points), and technology and communication (17 points)
  • Negative contributions came from cements (60 points), oil and gas exploration companies (38 points), and chemical (19 points)
  • Honda Atlas Cars (Pakistan) Limited declared net losses of Rs. 511 million (LPS: Rs. 3.58) for the quarter ended June 30, 2020
  • Sui Northern Gas Pipelines Limited (SNGPL) unveiled its the financial performance for the FY19, as per which the net profits of the company deteriorated by 36.38% YoY to Rs 7 billion 

Following are few BUY recommendations:

Allied Bank Ltd. (ABL) – BUY 
Current Price: PKR 78.75
Target Price: PKR 88.90

Attock Cement Ltd. (ACPL) – BUY 
Current Price: PKR 137.36
Target Price: PKR 180.0

Attock Petroleum (APL) – BUY 
Current Price: PKR 315.30
Target Price: PKR 378.8

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 40.57
Target Price: PKR 49.00

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 37.3
Target Price: PKR  51.00

Bank Al-Habib (BAHL) – BUY 
Current Price: PKR 57.39
Target Price: PKR  65.00

Bank of Punjab (BOP) – BUY 
Current Price: PKR 9.17
Target Price: PKR 13.90

Engro Fertilizer (EFERT) – BUY 
Current Price: PKR 64.02
Target Price: PKR 73.0

ENGRO Corporation (ENGRO) – BUY 
Current Price: PKR 306.09
Target Price: PKR 331.10

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 28.27
Target Price: PKR 35.75

Fauji Fertilizer Bin Qasim (FFBL) – BUY 
Current Price: PKR 19.51
Target Price: PKR 24.4

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 110.98
Target Price: PKR 130.0

Feroze1888 Mills Ltd. (FML) – BUY 
Current Price: PKR 93.15
Target Price: PKR 112.4

Gul Ahmed Textile Mills (GATM) – BUY 
Current Price: PKR 33.7
Target Price: PKR 47.8

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 116.07
Target Price: PKR 154.40

Habib Metropolitan Bank (HMB) – BUY 
Current Price: PKR 30.36
Target Price: PKR 45.70

HUB Power Co. (HUBCO) – BUY 
Current Price: PKR 77.09
Target Price: PKR 101.05

ICI Pakistan Ltd. (ICI) – BUY 
Current Price: PKR 751.14
Target Price: PKR 870.0

Kot Addu Power Co. (KAPCO) – BUY 
Current Price: PKR 23.07
Target Price: PKR 46.8

Kohat Cement Company (KOHC) – BUY 
Current Price: PKR 148.61
Target Price: PKR 174.9

Lucky Cement (LUCK) – BUY 
Current Price: PKR 531.53
Target Price: PKR 635.85

Lotte Chemical Pak Ltd. (LOTCHEM) – BUY 
Current Price: PKR 12.46
Target Price: PKR 14.1

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR   171.61
Target Price: PKR 211.00

Meezan Bank Limited (MEBL) – BUY 
Current Price: PKR   75.38
Target Price: PKR 100.00

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR   30.42
Target Price: PKR 38.27

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 29.73
Target Price: PKR 45.60

Nishat Chunian Limited (NCL) – BUY 
Current Price: PKR 35.31
Target Price: PKR 47.5

Nishat Chunian Power Limited (NCPL) – BUY 
Current Price: PKR 14.48
Target Price: PKR 27.0

Nishat Mills (NML) – BUY 
Current Price: PKR 90.80
Target Price: PKR 134.8

Nishat Power Limited (NPL) – BUY 
Current Price: PKR 23.00
Target Price: PKR 31.1

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 114.71
Target Price: PKR 156.9

Pakistan Oil Limited (POL) – BUY 
Current Price: PKR 391.9
Target Price: PKR 563.0

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 98.00
Target Price: PKR 118.3

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 174.37
Target Price: PKR 188.4

United Bank Limited (UBL) – BUY 
Current Price: PKR 111.26
Target Price: PKR 128.7

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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