Pakistan Stock Exchange (PSX) Weekly Analysis 31 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:  HBL, COLG, TRG, UBL, HUBC, SHELL, Systems Limited, and Bannu Woolen Mills.

Top losers of last week were:  Indus Dyeing and Manufacturing Company, Bank Al Falah, Bank of Punjab, Unity Foods and Standard Chartered. 

The Pakistan Stock Exchange (PSX) market index resumed its upward march in the outgoing week as investor confidence revived on back of encouraging news flows and host of positive triggers. KSE-100 index closed on 41,056 by gaining 1,435 points or 3.6%. 

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

  • Investors’ excitement was underpinned by expectation of the rebound in economy post Covid-19 as the current account recorded surplus in July came in at $424 million, as against deficit of $613m in the same month of 2019 and $100m in outgoing June
  • Major reason for the switch over was thought to be higher remittances received during July. Moreover, foreigners’ net purchases on several trading days encouraged the investors to believe that the months of outflow was finally plugged and Pakistan had started to appear on the foreign fund managers’ radar
  • Exploration and production sector remained under pressure throughout the week on back of expected privatisation of Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL), which triggered a selloff in oil sector scrips
  • Investors cheered Sindh Assembly’s move of abolishing 3% capital value tax (CVT) on immoveable property in the Finance Bill, which fuelled the rally further
  • Investors remained optimistic for a lower inflation reading for the month of August 2020 and the subsequent monetary policy announcement, which helped spur buying activity
  • The finance ministry forecasted 1% recovery of the economy during the first quarter of the ongoing fiscal year, which propelled the index upward
  • Average daily trading volumes settled at 440 million shares (down 0.3% week-on-week) while average value traded clocked-in at $102 million (down 5% week-on-week)
  • Contribution to the upside was led by power generation and distribution (up 4.8% week-on-week), oil and gas marketing companies (5.0%) and textile composite (6.8%) sectors
  • Public offerings of OGDC and PPL shares have been approved
  • Current account posted $424 million surplus in July 2020
  • Refineries to face penalty for not producing petroleum products on Euro-V specifications
  • The news of allowance from ministry to increase drug prices also led pharmaceutical to post 4.7pc gain
  • PKR appreciates by Rs 1.788 over the week
  • Foreign investors dumped net USD 802, 032 worth of stocks during the week with foreign corporates doing the bulk of the selling
  • On the local front, Mutual Funds picked up USD 18.4 million worth of stocks, followed by USD 1.47 million and USD 1 million worth of stocks purchased by local Companies and Other organizations respectively
  • Pakistan's Forex Reserves increased by USD 66.90 Million or 0.34% and the total liquid foreign reserves held by the country stood at USD 19,722.40 Million on Aug 21, 2020
  • Pakistan’s current account balance has swung into a surplus of $424 million in July 2020. This surplus during the month is emanated from higher workers' remittances and recovery in exports on a sequential basis


Following are few BUY recommendations:


Attock Cement Ltd. (ACPL) – BUY 

Current Price: PKR 147.38

Target Price: PKR 180.0


Attock Petroleum (APL) – BUY 

Current Price: PKR 359.18

Target Price: PKR 378.8


Bank Al-Falah (BAFL) – BUY 

Current Price: PKR 34.55

Target Price: PKR  51.00


Bank of Punjab (BOP) – BUY 

Current Price: PKR 9.73

Target Price: PKR 13.90


Engro Fertilizer (EFERT) – BUY 

Current Price: PKR 62.77

Target Price: PKR 73.0


ENGRO Corporation (ENGRO) – BUY 

Current Price: PKR 299.92

Target Price: PKR 331.10


Fatima Fertilizer (FATIMA) – BUY 

Current Price: PKR 27.41

Target Price: PKR 35.75


Fauji Fertilizer Bin Qasim (FFBL) – BUY 

Current Price: PKR 18.62

Target Price: PKR 24.4


Fauji Fertilizer Company (FFC) – BUY 

Current Price: PKR 108.71

Target Price: PKR 130.0


Feroze1888 Mills Ltd. (FML) – BUY 

Current Price: PKR 98.05

Target Price: PKR 112.4


Gul Ahmed Textile Mills (GATM) – BUY 

Current Price: PKR 40.66

Target Price: PKR 47.8


Habib Bank Limited (HBL) – BUY 

Current Price: PKR 135.22

Target Price: PKR 154.40


Habib Metropolitan Bank (HMB) – BUY 

Current Price: PKR 35.80

Target Price: PKR 45.70


HUB Power Co. (HUBCO) – BUY 

Current Price: PKR 84.59

Target Price: PKR 101.05


ICI Pakistan Ltd. (ICI) – BUY 

Current Price: PKR 776.24

Target Price: PKR 870.0


Kot Addu Power Co. (KAPCO) – BUY 

Current Price: PKR 29.33

Target Price: PKR 46.8


Kohat Cement Company (KOHC) – BUY 

Current Price: PKR 173.42

Target Price: PKR 174.9


Lucky Cement (LUCK) – BUY 

Current Price: PKR 604.95

Target Price: PKR 635.85


Lotte Chemical Pak Ltd. (LOTCHEM) – BUY 

Current Price: PKR 12.39

Target Price: PKR 14.1


Muslim Commercial Bank (MCB) – BUY 

Current Price: PKR   171.81

Target Price: PKR 211.00


Meezan Bank Limited (MEBL) – BUY 

Current Price: PKR   90.77

Target Price: PKR 100.00


Maple Leaf Cement (MLCF) – BUY 

Current Price: PKR   35.92

Target Price: PKR 38.27


National Bank of Pakistan (NBP) – BUY 

Current Price: PKR 36.50

Target Price: PKR 45.60


Nishat Chunian Limited (NCL) – BUY 

Current Price: PKR 42.12

Target Price: PKR 47.5


Nishat Chunian Power Limited (NCPL) – BUY 

Current Price: PKR 14.87

Target Price: PKR 27.0


Nishat Mills (NML) – BUY 

Current Price: PKR 109.27

Target Price: PKR 134.8


Nishat Power Limited (NPL) – BUY 

Current Price: PKR 24.04

Target Price: PKR 31.1


Oil & Gas Development Co. (OGDC) – BUY 

Current Price: PKR 114.15

Target Price: PKR 156.9


Pakistan Oil Limited (POL) – BUY 

Current Price: PKR 434.48

Target Price: PKR 563.0


Pakistan Petroleum (PPL) – BUY 

Current Price: PKR 99.56

Target Price: PKR 118.3


Pakistan State Oil (PSO) – BUY 

Current Price: PKR 189.49

Target Price: PKR 214.62


United Bank Limited (UBL) – BUY 

Current Price: PKR 126.74

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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