Pakistan Stock Exchange (PSX) Weekly Analysis 3 August, 2020

BUY recommendations are:  ABL, ACPL, APL, ASTL, BAFL, 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: LUCK, BAHL, HBL, TRG, HCAR, ATRL, HMB, CHCC and HUBC.

Top losers of last week were: NESTLE, FFBL, ARPL, ANL and UNITY.

Volume leaders of last week were: PAEL, KEL, TRG, MLCF, and PIBTL.

The Pakistan Stock Exchange (PSX) market index marched ahead for the sixth straight week. The benchmark KSE-100 Index closed at 39,258 levels by gaining 1,650 points or 4.4%. While KSE-30 index closed on 17,070 by gaining 755 points or 4.63 %.

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


  • A drastic drop in Covid-19 cases across the country bolstered investor interest as market participants foresaw normalisation of economic activities over the coming days
  • Keeping in view the global price hike of oil, the government on Friday increased the prices of petrol from Rs100.11 per liter to Rs103.97 per liter, an increase of Rs3.86
  • The banking sector remained in the limelight throughout the week on anticipation of robust financial results. Index-heavy sectors including automobile and cement also posted substantial gains
  • Auto sector witnessed improved activity, where we noticed bullish returns in Honda Car, prior to the announcement of new prices, which surged by approximately 23 percent during the week
  • Investors are likely to invest on the implications of the FATF related bills passed by the National Assembly later this week
  • Foreign selling continued this week clocking in at $9.7 million compared to a net selloff of $9.3 million last week. Selling was witnessed in E&P (exploration and production) ($5.1 million) and power & distribution ($1 million)
  • On the domestic front, major buying was reported by mutual munds ($11.3 million and companies ($2.2 million)
  • The cement sector witnessed value buying as the sector’s prospects improve with increase in economic and construction activity, especially after the initiation of dam construction and CPEC (China-Pakistan Economic Corridor) moving towards its next phase
  • Banks also saw a surge in bullish activity, after the cancellation of a routine monetary policy meeting at the State Bank of Pakistan, signaling an end to the downward trends to the country’s policy rates
  • Sector-wise positive contributions came from commercial Banks (482 points), cement (285 points), power generation & distribution (113 points), technology & communication (111 points), and automobile assembler (109 points)
  • Negative contributions came from food & personal care (12 points) and Vanaspati (1 points)
  • The State Bank received $505 million from the World Bank, which aided the rupee and lifted pressure off foreign currency reserves
  • Oil sector stocks came under pressure and traded sideways despite approval by the Economic Coordination Committee of a revision in petroleum product prices on a fortnightly basis to help the oil sector increase its profits
  • PSO commissioning the first electric vehicle charging station
  • State Bank expanding the scope of Shariah-compliant financial services
  • Government setting aside Rs1.5 billion in subsidy for local tractors
  • Honda Atlas Cars Pakistan Limited also announced that prices of Honda Cars have been revised w.e.f 10th August 2020 due to the current forex situation
  • Pakistan Stock Exchange notified the listing of The Organic Meat Company (TOMC) with effect from Monday, August 3, 2020
  • The LOTTE Chemical Pakistan Limited (LOTCEHM) via notification to Exchange  announced the commencement of sale of surplus electricity to K-Electric from July 30, 2020
  • TRG Pakistan Limited announced that one of its indirect portfolio companies, IBEX Limited, has initiated a listing process on NASDAQ
  • Sui Southern Gas Company (SSGC) suffered losses of Rs 3.6 billion during 1QFY18
  • Atlas Honda suffered losses of Rs 117 million during 2QCY20
  • SBP reverts to normal office timings from August 3
  • Banks disburse Rs126bln loans under Rozgar finance scheme 


Following are few BUY recommendations:

Allied Bank Ltd. (ABL) – BUY 
Current Price: PKR 83.03
Target Price: PKR 88.90

Attock Cement Ltd. (ACPL) – BUY 
Current Price: PKR 138.88
Target Price: PKR 180.0

Attock Petroleum (APL) – BUY 
Current Price: PKR 339.78
Target Price: PKR 378.8

Amreli Steels Limited (ASTL) – BUY 
Current Price: PKR 42.82
Target Price: PKR 49.00

Bank Al-Falah (BAFL) – BUY 
Current Price: PKR 37.27
Target Price: PKR  51.00

Bank of Punjab (BOP) – BUY 
Current Price: PKR 9.70
Target Price: PKR 13.90

Engro Fertilizer (EFERT) – BUY 
Current Price: PKR 66.62
Target Price: PKR 73.0

ENGRO Corporation (ENGRO) – BUY 
Current Price: PKR 313.34
Target Price: PKR 331.10

Fatima Fertilizer (FATIMA) – BUY 
Current Price: PKR 29.23
Target Price: PKR 35.75

Fauji Fertilizer Bin Qasim (FFBL) – BUY 
Current Price: PKR 18.83
Target Price: PKR 24.4

Fauji Fertilizer Company (FFC) – BUY 
Current Price: PKR 110.74
Target Price: PKR 130.0

Feroze1888 Mills Ltd. (FML) – BUY 
Current Price: PKR 92.17
Target Price: PKR 112.4

Gul Ahmed Textile Mills (GATM) – BUY 
Current Price: PKR 34.5
Target Price: PKR 47.8

Habib Bank Limited (HBL) – BUY 
Current Price: PKR 122.53
Target Price: PKR 154.40

Habib Metropolitan Bank (HMB) – BUY 
Current Price: PKR 34.84
Target Price: PKR 45.70

HUB Power Co. (HUBCO) – BUY 
Current Price: PKR 80.77
Target Price: PKR 101.05

ICI Pakistan Ltd. (ICI) – BUY 
Current Price: PKR 760.00
Target Price: PKR 870.0

Kot Addu Power Co. (KAPCO) – BUY 
Current Price: PKR 24.57
Target Price: PKR 46.8

Kohat Cement Company (KOHC) – BUY 
Current Price: PKR 163.39
Target Price: PKR 174.9

Lucky Cement (LUCK) – BUY 
Current Price: PKR 581.46
Target Price: PKR 635.85

Lotte Chemical Pak Ltd. (LOTCHEM) – BUY 
Current Price: PKR 13.09
Target Price: PKR 14.1

Muslim Commercial Bank (MCB) – BUY 
Current Price: PKR   177.40
Target Price: PKR 211.00

Meezan Bank Limited (MEBL) – BUY 
Current Price: PKR   84.70
Target Price: PKR 100.00

Maple Leaf Cement (MLCF) – BUY 
Current Price: PKR   32.45
Target Price: PKR 38.27

National Bank of Pakistan (NBP) – BUY 
Current Price: PKR 30.91
Target Price: PKR 45.60

Nishat Chunian Limited (NCL) – BUY 
Current Price: PKR 39.46
Target Price: PKR 47.5

Nishat Chunian Power Limited (NCPL) – BUY 
Current Price: PKR 14.51
Target Price: PKR 27.0

Nishat Mills (NML) – BUY 
Current Price: PKR 95.64
Target Price: PKR 134.8

Nishat Power Limited (NPL) – BUY 
Current Price: PKR 23.68
Target Price: PKR 31.1

Oil & Gas Development Co. (OGDC) – BUY 
Current Price: PKR 114.55
Target Price: PKR 156.9

Pakistan Oil Limited (POL) – BUY 
Current Price: PKR 407.35
Target Price: PKR 563.0

Pakistan Petroleum (PPL) – BUY 
Current Price: PKR 99.57
Target Price: PKR 118.3

Pakistan State Oil (PSO) – BUY 
Current Price: PKR 180.91
Target Price: PKR 188.4

United Bank Limited (UBL) – BUY 
Current Price: PKR 113.80
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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