Pakistan Stock Exchange (PSX) Weekly Analysis 17 August, 2020

BUY recommendations are:  ABL, ACPL, APL, 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 and UBL.

Top gainers of last week were: HUBCO, PPL, UBL, KAPCO, and SNGPL.  

Top losers of last week were: DAWH, ENGRO, MCB, EFERT, and FFC.

The Pakistan Stock Exchange (PSX) market index movement was volatile and ends in green, for the consecutively 8th week. The benchmark KSE-100 Index closed at 40,291 levels by gaining 261 points or 0.65 %. 

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

  • Gold prices break past Rs132,000-a-tola mark, registering record high
  • The Government has signed a new agreement with the Independent Power Producers (IPPs) to bring down the cost of power generation and reduce circular debt
  • Supreme Court’s GIDC verdict, political concerns keep investors wary
  • Selling pressure persisted throughout the week in index-heavy sectors as the unfolding political scenario in terms of relations with Saudi Arabia and the pending gas infrastructure development cess (GIDC) case made investors wary
  • The week kicked off on a bearish note as shares took a battering in the wake of political worries following remarks from foreign minister about the Organization of Islamic Cooperation (OIC) and Kashmir
  • Investors cheered Moody’s rating agency’s stable outlook on Pakistan, the development failed to propel the index into the green zone
  • On Tuesday, however, the index rebounded and spiked to a six-month high on the back of increase in international crude oil prices and prospects of consensus between independent power producers and the government of Pakistan
  • Pakistan’s request to Saudi Arabia and Islamic Development Bank’s Islamic Trade Finance Corporation to extend the facility of oil supply on deferred payments for another year also boosted investors’ confidence and fuelled a rally in oil-related sectors
  • An increase in fertilizer prices also enhanced activity in the sector
  • The Supreme Court dismissed all petitions against the GIDC levy and ruled in favour of the federal government, which would collect Rs420 billion from different companies
  • Average daily trading volumes and value for the outgoing week were down by 9% and 14% to 581 million shares and $125 million respectively
  • Contribution to the upside was led by power generation and distribution firms (261 points), oil and gas exploration companies (97 points), oil and gas marketing companies (92 points), commercial banks (86 points) and textile composite firms (29 points)
  • Foreign buying continued during the week and stood at $8.7 million compared to net buying of $3.7 million last week. Buying was witnessed in cement companies ($4.3 million) and fertiliser firms ($2.7 million)
  • K-Electric closing Rs25 billion fund raising via Sukuk
  • Car sales declining 8% in July
  • Large-scale manufacturing shrinking 10.2% in FY20 and government restricting budget deficit to Rs3.4 trillion


Following are few BUY recommendations:

Allied Bank Ltd. (ABL) – BUY 

Current Price: PKR 84.50

Target Price: PKR 88.90

Attock Cement Ltd. (ACPL) – BUY 

Current Price: PKR 144.39

Target Price: PKR 180.0

Attock Petroleum (APL) – BUY 

Current Price: PKR 337.41

Target Price: PKR 378.8

Bank Al-Falah (BAFL) – BUY 

Current Price: PKR 38.25

Target Price: PKR  51.00

Bank of Punjab (BOP) – BUY 

Current Price: PKR 10.08

Target Price: PKR 13.90

Engro Fertilizer (EFERT) – BUY 

Current Price: PKR 65.89

Target Price: PKR 73.0

ENGRO Corporation (ENGRO) – BUY 

Current Price: PKR 307.11

Target Price: PKR 331.10

Fatima Fertilizer (FATIMA) – BUY 

Current Price: PKR 26.47

Target Price: PKR 35.75

Fauji Fertilizer Bin Qasim (FFBL) – BUY 

Current Price: PKR 20.15

Target Price: PKR 24.4

Fauji Fertilizer Company (FFC) – BUY 

Current Price: PKR 107.31

Target Price: PKR 130.0

Feroze1888 Mills Ltd. (FML) – BUY 

Current Price: PKR 99.90

Target Price: PKR 112.4

Gul Ahmed Textile Mills (GATM) – BUY 

Current Price: PKR 35.42

Target Price: PKR 47.8

Habib Bank Limited (HBL) – BUY 

Current Price: PKR 127.78

Target Price: PKR 154.40

Habib Metropolitan Bank (HMB) – BUY 

Current Price: PKR 34.70

Target Price: PKR 45.70

HUB Power Co. (HUBCO) – BUY 

Current Price: PKR 89.77

Target Price: PKR 101.05

ICI Pakistan Ltd. (ICI) – BUY 

Current Price: PKR 783.07

Target Price: PKR 870.0

Kot Addu Power Co. (KAPCO) – BUY 

Current Price: PKR 28.39

Target Price: PKR 46.8

Kohat Cement Company (KOHC) – BUY 

Current Price: PKR 164.87

Target Price: PKR 174.9

Lucky Cement (LUCK) – BUY 

Current Price: PKR 609.88

Target Price: PKR 635.85

Lotte Chemical Pak Ltd. (LOTCHEM) – BUY 

Current Price: PKR 12.83

Target Price: PKR 14.1

Muslim Commercial Bank (MCB) – BUY 

Current Price: PKR   178.28

Target Price: PKR 211.00

Meezan Bank Limited (MEBL) – BUY 

Current Price: PKR   85.82

Target Price: PKR 100.00

Maple Leaf Cement (MLCF) – BUY 

Current Price: PKR   35.46

Target Price: PKR 38.27

National Bank of Pakistan (NBP) – BUY 

Current Price: PKR 35.36

Target Price: PKR 45.60

Nishat Chunian Limited (NCL) – BUY 

Current Price: PKR 41.27

Target Price: PKR 47.5

Nishat Chunian Power Limited (NCPL) – BUY 

Current Price: PKR 15.65

Target Price: PKR 27.0

Nishat Mills (NML) – BUY 

Current Price: PKR 101.01

Target Price: PKR 134.8

Nishat Power Limited (NPL) – BUY 

Current Price: PKR 24.09

Target Price: PKR 31.1

Oil & Gas Development Co. (OGDC) – BUY 

Current Price: PKR 115.30

Target Price: PKR 156.9

Pakistan Oil Limited (POL) – BUY 

Current Price: PKR 410.67

Target Price: PKR 563.0

Pakistan Petroleum (PPL) – BUY 

Current Price: PKR 102.90

Target Price: PKR 118.3

United Bank Limited (UBL) – BUY 

Current Price: PKR 121.50

Target Price: PKR 128.7


Thank you very much for reading this article.


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Written by: Rana Khuram

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