Pakistan Stock Exchange (PSX) Weekly Analysis 24 August, 2020

BUY recommendations are:  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, PSO, and UBL.

Top gainers of last week were: POL, FFC, SNGP, FCEPL, EPCL, AGP, ABL, and SSGC.  

Top losers of last week were: HUBC, ENGRO, MCB, FFBL, HASCOL, FML, HBL, and EFERT. 

Top Volume Leaders of last week were: TRG, UNITY, HASCOL, PRL and PIBTL. 

The Pakistan Stock Exchange (PSX) market index witnessed a volatile trading week as stocks struggled to sustain gains at the 40,000-level in the wake of domestic economic and regional political ques. The benchmark KSE-100 Index closed at 39,621 levels by gaining 669 points or 1.7 %. While KSE-30 index closed at 17,177 by losing 361 points or 2.06%.

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

  • The Cabinet Committee on Privatization’s decision regarding privatization transactions of state-owned enterprises, wherein it approved the sale of 7% shares of OGDCL, 10% shares of PPL, and 20% shares of Pakistan Reinsurance Company
  • The week kicked off on a bearish note as the government’s agreement with independent power producers (IPPs) on renegotiation of power purchase agreements (PPAs) fuelled profit-taking
  • The correction was due after the index had rallied by a massive 46pc from its five-month low in March
  • An affirmation of B- rating for Pakistan and a stable outlook by Fitch Ratings also helped revive investor sentiments
  • Disappointing foreign direct investment (FDI) numbers, which showed a 35% month-on-month decline in July, wreaked havoc on the market and encouraged investors to divest their stockholdings
  • Oil marketing companies sector staged a modest rally on back of expected clearance of the circular debt position
  • During the outgoing week, average daily trading volumes settled at 441 million shares (down 24% week-on-week) while average value traded clocked-in at $107 million (down 15% week-on-week)
  • Contribution to the upside was led oil and gas marketing companies (39 points), pharmaceuticals (22 points), transport (9 points), paper and board (five points) and vanaspati and allied industries (three points)
  • Negative contributions came from power generation (218 points) and fertiliser (165 points) sectors
  • Major decline to the index came from power generation and distribution that declined 5.6pc on the announcement of potential revision in existing power purchase agreements for most IPPs which were thought to revise downwards the annual capacity payments, reduction in current equity returns and removal of dollar indexation
  • Foreign selling this week clocking-in at $4 million compared to a net buy of $8.7 million last week. Selling was witnessed in banks ($3.2 million) and cement ($2.9 million)
  • On the domestic front, major buying was reported by insurance companies ($7.9 million and Individuals ($7.3 million)
  • Government unveiled its two-year report
  • Pakistan’s long-term outlook was deemed ‘stable’ by S&P and textile exports jumped 14.4% year-on-year in July 2020
  • PSO announced to become the first OMC to upgrade Pakistan’s fuel standard from Euro 2 to Euro 5
  • Mari Petroleum Company Limited (MPCL), the Operator of Mari Development & Production Lease (Mari D&PL) with 100% working interest, made a gas discovery at its exploratory well Iqbal-1, drilled in Mari D&PL Area, located in Daharki, District Ghotki, Sindh
  • Bank Al Habib Limited recorded profits of Rs. 7.24 billion (EPS: 6.52) for the half year ended June 30, 2020, showing a growth of 63% as compared to the same period of last year
  • Pak Electron Limited (PAEL) suffered losses of Rs 425 million against net profits of Rs 275 million of the corresponding period last year
  • Meezan Bank registered healthy growth of 65% YoY in net profits during 1HCY20
  • Habib Metropolitan Bank (HMB) recorded profits of Rs. 4.29 billion (EPS: Rs 3.97), showing a growth of 27.71% against net profits of Rs 3.35 billion of the corresponding period last year
  • Remittances hit the record high monthly level in Jul’20, with the country receiving US$2.76bn (up 36.5%YoY)
  • Textile exports soared 14.4%YoY to US$1.27bn in the Jul’20, with garments, knitwear, bed-wear, and towel exports rising 18.04%YoY, 20.4%YoY, 25.3%YoY, and 21.4%YoY, respectively
  • Industrial sectors are reportedly mulling over review petition on the recent verdict of the Supreme Court on GIDC
  • Major names slated to announce their earnings next week include DAWH, GLAXO, ISL, SYS, BAFL, ACPL, CHCC, FATIMA, POL, APL, BOP, ABOT, and NBP

Following are few BUY recommendations:

Attock Cement Ltd. (ACPL) – BUY 

Current Price: PKR 142.99

Target Price: PKR 180.0


Attock Petroleum (APL) – BUY 

Current Price: PKR 340.17

Target Price: PKR 378.8


Bank Al-Falah (BAFL) – BUY 

Current Price: PKR 36.95

Target Price: PKR  51.00


Bank of Punjab (BOP) – BUY 

Current Price: PKR 10.05

Target Price: PKR 13.90


Engro Fertilizer (EFERT) – BUY 

Current Price: PKR 61.77

Target Price: PKR 73.0


ENGRO Corporation (ENGRO) – BUY 

Current Price: PKR 292.57

Target Price: PKR 331.10


Fatima Fertilizer (FATIMA) – BUY 

Current Price: PKR 26.25

Target Price: PKR 35.75


Fauji Fertilizer Bin Qasim (FFBL) – BUY 

Current Price: PKR 18.34

Target Price: PKR 24.4


Fauji Fertilizer Company (FFC) – BUY 

Current Price: PKR 109.30

Target Price: PKR 130.0


Feroze1888 Mills Ltd. (FML) – BUY 

Current Price: PKR 94.00

Target Price: PKR 112.4


Gul Ahmed Textile Mills (GATM) – BUY 

Current Price: PKR 36.00

Target Price: PKR 47.8


Habib Bank Limited (HBL) – BUY 

Current Price: PKR 124.27

Target Price: PKR 154.40


Habib Metropolitan Bank (HMB) – BUY 

Current Price: PKR 34.88

Target Price: PKR 45.70


HUB Power Co. (HUBCO) – BUY 

Current Price: PKR 80.59

Target Price: PKR 101.05


ICI Pakistan Ltd. (ICI) – BUY 

Current Price: PKR 763.26

Target Price: PKR 870.0


Kot Addu Power Co. (KAPCO) – BUY 

Current Price: PKR 27.66

Target Price: PKR 46.8


Kohat Cement Company (KOHC) – BUY 

Current Price: PKR 167.43

Target Price: PKR 174.9


Lucky Cement (LUCK) – BUY 

Current Price: PKR 597.86

Target Price: PKR 635.85


Lotte Chemical Pak Ltd. (LOTCHEM) – BUY 

Current Price: PKR 12.43

Target Price: PKR 14.1


Muslim Commercial Bank (MCB) – BUY 

Current Price: PKR   169.60

Target Price: PKR 211.00


Meezan Bank Limited (MEBL) – BUY 

Current Price: PKR   85.95

Target Price: PKR 100.00


Maple Leaf Cement (MLCF) – BUY 

Current Price: PKR   34.18

Target Price: PKR 38.27


National Bank of Pakistan (NBP) – BUY 

Current Price: PKR 35.14

Target Price: PKR 45.60


Nishat Chunian Limited (NCL) – BUY 

Current Price: PKR 40.71

Target Price: PKR 47.5


Nishat Chunian Power Limited (NCPL) – BUY 

Current Price: PKR 14.62

Target Price: PKR 27.0


Nishat Mills (NML) – BUY 

Current Price: PKR 102.94

Target Price: PKR 134.8


Nishat Power Limited (NPL) – BUY 

Current Price: PKR 23.34

Target Price: PKR 31.1


Oil & Gas Development Co. (OGDC) – BUY 

Current Price: PKR 114.92

Target Price: PKR 156.9


Pakistan Oil Limited (POL) – BUY 

Current Price: PKR 421.86

Target Price: PKR 563.0


Pakistan Petroleum (PPL) – BUY 

Current Price: PKR 100.26

Target Price: PKR 118.3


Pakistan State Oil (PSO) – BUY 

Current Price: PKR 186.52

Target Price: PKR 214.62


United Bank Limited (UBL) – BUY 

Current Price: PKR 118.60

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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