Pakistan Stock Exchange (PSX) Weekly Analysis 10 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, PSO and UBL.

Top gainers of last week were: HBL, TRG, LUCK, DAWH, JLICL, PSX, HCAR, PSMC, and PIOC. 

Top losers of last week were:  BNWM, SYS, SHFA, IDYM, and FATIMA.

Volume leaders of last week were: WTL, POWER, TRG, MLCF, and PAEL.

The Pakistan Stock Exchange (PSX) market index movement was bullish for the consecutively 7th week because Declining number of Covid infections, developments in projects boost sentiments. The benchmark KSE-100 Index closed at 40,030 levels by gaining 772 points or 1.96 %. While KSE-30 index closed on 17,297 by gaining 227 points or 1.33 %.

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

  • The announcement by the Punjab government of additional exemptions from lockdown coupled with permission to industries and the construction sector to operate round the clock was taken positively by market participants and supported the uptrend
  • Gold prices break past Rs132,000-a-tola mark, registering record high
  • The key inflation barometer rose sharply - for the third successive month - to 9.3% in July 2020 over a year ago due to a surge in food and petroleum product prices
  • Cement sales soared by a healthy 37.8% to 4.838 million tons in July 2020 from 3.512 million tons in the same month of previous year
  • Market anticipation of a hike of Rs5-7 in cement bag prices kept stocks in the cement sector in the limelight, helping them to close with modest gains
  • The exploration and production sector added to the gains on the back of rising international crude oil prices
  • Approval of key projects (ML-1 Railway upgradation worth Rs11.44 trillion under CPEC by Economic Coordination Committee along with four by Central Development Working Party worth Rs16.1 billion) kept the momentum strong
  • Ecnec approved the $6.8-billion worth ML-I project
  • Average volumes jumped 64% week-on-week to settle at 638 million shares, while average value traded was up 43% to $145 million
  • In terms of sectors, positive contributions came from commercial banks (up 218 points), cement (198 points), insurance (61 points), automobile assembler (59 points), and technology and communication (54 points)
  • Negative contributions came from oil and gas exploration companies (35 points) and pharmaceuticals (12 points). Scrip-wise, positive contributions were led by HBL (79 points), TRG (65 points), LUCK (60 points), DAWH (45 points), and PIOC (43 points)
  • Foreign buying this week clocking-in at $3.7 million compared to a net sell of $9.7 million last week. Buying was witnessed in fertiliser ($2.2 million) and cement ($2 million)
  • On the domestic front, major selling was reported by insurance companies ($29.4 million) and mutual funds ($11.9 million)
  • Foreign exchange reserves held by the central bank increased $567 million to $12.5 billion
  • CDNS raised profit rates on saving certificates
  • Moody’s reaffirms Pakistan’s ‘stable outlook’. Global agency maintains country’s B3 credit rating after concluding downgrade review
  • The index upsurge was supported by huge daily volume that rose 64pc over the previous week to a three-year high at 827 million shares
  • Bloomberg reported that China’s ambassador Yao Jing at a webinar in Islamabad has said  Chinese President Xi Jinping is planning to visit Pakistan later this year
  • TRG Pakistan Limited updated that its indirect portfolio company, IBEX Limited started trading on the Nasdaq Global Market on August 7, 2020
  • Engro Powergen Qadirpur Limited reported earnings of Rs. 1.3 billion (EPS: Rs. 4.04) i.e. nearly 30% lower than the figures recorded in the same period of last year
  • Engro Polymer and Chemicals Limited (EPCL) posted net profits of Rs 222 million, depicting the colossal decrease of 85.59% YoY when compared to net profits of Rs 1.54 billion in the same period last year


Following are few BUY recommendations:

Allied Bank Ltd. (ABL) – BUY 

Current Price: PKR 84.48

Target Price: PKR 88.90


Attock Cement Ltd. (ACPL) – BUY 

Current Price: PKR 151.25

Target Price: PKR 180.0


Attock Petroleum (APL) – BUY 

Current Price: PKR 338.01

Target Price: PKR 378.8


Bank Al-Falah (BAFL) – BUY 

Current Price: PKR 38.10

Target Price: PKR  51.00


Bank of Punjab (BOP) – BUY 

Current Price: PKR 10.20

Target Price: PKR 13.90


Engro Fertilizer (EFERT) – BUY 

Current Price: PKR 67.76

Target Price: PKR 73.0


ENGRO Corporation (ENGRO) – BUY 

Current Price: PKR 313.92

Target Price: PKR 331.10


Fatima Fertilizer (FATIMA) – BUY 

Current Price: PKR 28.03

Target Price: PKR 35.75


Fauji Fertilizer Bin Qasim (FFBL) – BUY 

Current Price: PKR 19.45

Target Price: PKR 24.4


Fauji Fertilizer Company (FFC) – BUY 

Current Price: PKR 108.59

Target Price: PKR 130.0


Feroze1888 Mills Ltd. (FML) – BUY 

Current Price: PKR 98.93

Target Price: PKR 112.4


Gul Ahmed Textile Mills (GATM) – BUY 

Current Price: PKR 35.84

Target Price: PKR 47.8


Habib Bank Limited (HBL) – BUY 

Current Price: PKR 127.32

Target Price: PKR 154.40


Habib Metropolitan Bank (HMB) – BUY 

Current Price: PKR 35.45

Target Price: PKR 45.70


HUB Power Co. (HUBCO) – BUY 

Current Price: PKR 79.78

Target Price: PKR 101.05


ICI Pakistan Ltd. (ICI) – BUY 

Current Price: PKR 770.86

Target Price: PKR 870.0


Kot Addu Power Co. (KAPCO) – BUY 

Current Price: PKR 24.47

Target Price: PKR 46.8


Kohat Cement Company (KOHC) – BUY 

Current Price: PKR 169.48

Target Price: PKR 174.9


Lucky Cement (LUCK) – BUY 

Current Price: PKR 601.91

Target Price: PKR 635.85


Lotte Chemical Pak Ltd. (LOTCHEM) – BUY 

Current Price: PKR 13.03

Target Price: PKR 14.1


Muslim Commercial Bank (MCB) – BUY 

Current Price: PKR   181.43

Target Price: PKR 211.00


Meezan Bank Limited (MEBL) – BUY 

Current Price: PKR   85.12

Target Price: PKR 100.00


Maple Leaf Cement (MLCF) – BUY 

Current Price: PKR   35.90

Target Price: PKR 38.27


National Bank of Pakistan (NBP) – BUY 

Current Price: PKR 33.21

Target Price: PKR 45.60


Nishat Chunian Limited (NCL) – BUY 

Current Price: PKR 39.01

Target Price: PKR 47.5


Nishat Chunian Power Limited (NCPL) – BUY 

Current Price: PKR 14.90

Target Price: PKR 27.0


Nishat Mills (NML) – BUY 

Current Price: PKR 95.43

Target Price: PKR 134.8


Nishat Power Limited (NPL) – BUY 

Current Price: PKR 23.42

Target Price: PKR 31.1


Oil & Gas Development Co. (OGDC) – BUY 

Current Price: PKR 113.15

Target Price: PKR 156.9


Pakistan Oil Limited (POL) – BUY 

Current Price: PKR 408.86

Target Price: PKR 563.0


Pakistan Petroleum (PPL) – BUY 

Current Price: PKR 99.69

Target Price: PKR 118.3


Pakistan State Oil (PSO) – BUY 

Current Price: PKR 181.15

Target Price: PKR 188.4


United Bank Limited (UBL) – BUY 

Current Price: PKR 116.49

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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