Pakistan Stock Exchange (PSX) Weekly Analysis 28 September, 2020

BUY recommendations are:  ACPL, APL, BAFL, BOP, EFERT, ENGRO, FATIMA, FFBL, FFC, FML, GATM, HBL, HMB, HUBCO, ICI, KAPCO, LOTCHEM, LUCK, MCB, MEBL, NBP, NCL, NCPL, NML, NPL, OGDC, POL, PPL, PSO, and UBL.


Top gainers of last week were: ILP, SHEL, DAWH, ATLH, and NCL


Top losers of last week were: OGDC, PPL, ANL, COLG, UBL, HUBC, and TRG.


Top Volume Leaders of last week were: HASCOL, KEL, UNITY, SILK, and ASL. 


The Pakistan Stock Exchange (PSX) market index witnessed another bearish week as spill over effect of faltering global equities battered the local stock market throughout the week. KSE-100 index closed on 41,701 by losing 804 points or - 1.89%. While KSE-30 index closed on 17,606 by losing 440 points or - 2.44%. 


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


  • Equities lost more blood in week as bears mauled cements, autos, banks, and energies with ‘buying cues’ nowhere to be found amid a brewing political crisis
  • The week kicked-off amid high political noise, as the opposition leaders gathered for the All Parties Conference last weekend, thus largely impacting sentiment at the market
  • Policy rate status quo and a steady rupee are likely to keep the index ticking
  • Considering unchanged monetary policy and stable rupee, fresh liquidity injections from local and foreign investors in the near to medium term coupled with the end of the rollover week are expected to rally optimism in equities
  • Re-emergence of COVID-19 cases could result in a downside scenario for the market. So far, Pakistan seems to be far from a second wave of the coronavirus. However turmoil in international markets may continue to suppress sentiment in the domestic bourse
  • Average volumes hit 466 million shares, down 13 percent week-on-week, while average traded value reached $82 million, up 11 percent
  • Foreign investors sold equities worth $10.5 million compared to a net selling of $1.7 million last week
  • Major selling was witnessed in cement ($6.1 million) and commercial banks ($3.8 million)
  • On the local front, major buyers were insurance companies ($9.1 million) and other companies ($7 million)
  • State Bank of Pakistan’s Monetary Policy Committee decided to keep policy rate unchanged at 7 percent in its September 21 meeting
  • The central bank expects average inflation in FY21 to range within 7-9 percent and growth is projected to recover to slightly above 2 percent in FY21, after falling to -0.4 percent in FY20
  • In last week’s treasury bills auction, government raised Rs520 billion where cut-off yields for three-, six- and 12-month papers were relatively unchanged, which showed trimming of interest rate cycle almost over
  • Sector-wise negative contributions came from oil & gas exploration (267 points), commercial banks (180 points), power generation & distribution (81 points), cement (70 points), and technology & communication (61 points). Positive contributions came from textile composite (11 points)
  • Declining global oil prices also took a toll on the domestic oil sector, which registered modest losses
  • The Competition Commission of Pakistan (CCP) raided the office of All Pakistan Cement Manufacturers Association, which fuelled the decline further
  • Gas sector circular debt surged to Rs250 billion
  • IMF sought a further limit on short-term borrowings and exclusivity of K-Electric
  • The government cautioned of massive gas deficit in winter as supply halts from some fields
  • Pakistan's Forex Reserves decreased by USD 55.30 Million or 0.28% and the total liquid foreign reserves held by the country stood at USD 19,903.70 Million on Sep 18, 2020
  • The overall power production during the month of August’20 increased by 4%YoY to 14,630Gwh
  • The import of mobile phones into the country has witnessed an increase of 87.37 percent during the first two months of the ongoing financial year (2020-21) as compared to the corresponding period of last year


Following are few BUY recommendations:


Attock Cement Ltd. (ACPL) – BUY 

Current Price: PKR 162.13

Target Price: PKR 180.0


Attock Petroleum (APL) – BUY 

Current Price: PKR 345.75

Target Price: PKR 378.8


Amreli Steels Ltd. (ASTL) – BUY 

Current Price: PKR 45.65

Target Price: PKR 56.00


Bank Al-Falah (BAFL) – BUY 

Current Price: PKR 34.93

Target Price: PKR  51.00


Bank of Punjab (BOP) – BUY 

Current Price: PKR 9.80

Target Price: PKR 13.90


Engro Fertilizer (EFERT) – BUY 

Current Price: PKR 61.67

Target Price: PKR 73.0


ENGRO Corporation (ENGRO) – BUY 

Current Price: PKR 306.44

Target Price: PKR 331.10


Fatima Fertilizer (FATIMA) – BUY 

Current Price: PKR 29.46

Target Price: PKR 35.75


Fauji Fertilizer Bin Qasim (FFBL) – BUY 

Current Price: PKR 21.91

Target Price: PKR 30.0


Fauji Fertilizer Company (FFC) – BUY 

Current Price: PKR 110.46

Target Price: PKR 130.0


Feroze1888 Mills Ltd. (FML) – BUY 

Current Price: PKR 102.50

Target Price: PKR 112.4


Gul Ahmed Textile Mills (GATM) – BUY 

Current Price: PKR 39.16

Target Price: PKR 47.8


Habib Bank Limited (HBL) – BUY 

Current Price: PKR 133.81

Target Price: PKR 154.40


Habib Metropolitan Bank (HMB) – BUY 

Current Price: PKR 34.87

Target Price: PKR 45.70


HUB Power Co. (HUBCO) – BUY 

Current Price: PKR 81.37

Target Price: PKR 101.05


ICI Pakistan Ltd. (ICI) – BUY 

Current Price: PKR 725.24

Target Price: PKR 870.0


Kot Addu Power Co. (KAPCO) – BUY 

Current Price: PKR 27.55

Target Price: PKR 46.8


Lotte Chemical Pak Ltd. (LOTCHEM) – BUY 

Current Price: PKR 12.56

Target Price: PKR 14.1


Lucky Cement (LUCKY) – BUY 

Current Price: PKR 650.45

Target Price: PKR 761.30


Muslim Commercial Bank (MCB) – BUY 

Current Price: PKR   176.70

Target Price: PKR 211.00


Meezan Bank Limited (MEBL) – BUY 

Current Price: PKR   80.39

Target Price: PKR 100.00


National Bank of Pakistan (NBP) – BUY 

Current Price: PKR 40.26

Target Price: PKR 45.60


Nishat Chunian Limited (NCL) – BUY 

Current Price: PKR 41.79

Target Price: PKR 47.5


Nishat Chunian Power Limited (NCPL) – BUY 

Current Price: PKR 13.99

Target Price: PKR 27.0


Nishat Mills (NML) – BUY 

Current Price: PKR 106.43

Target Price: PKR 134.8


Nishat Power Limited (NPL) – BUY 

Current Price: PKR 22.05

Target Price: PKR 31.1


Oil & Gas Development Co. (OGDC) – BUY 

Current Price: PKR 104.10

Target Price: PKR 156.9


Pakistan Oil Limited (POL) – BUY 

Current Price: PKR 425.02

Target Price: PKR 563.0


Pakistan Petroleum (PPL) – BUY 

Current Price: PKR 92.42

Target Price: PKR 143.40


Pakistan State Oil (PSO) – BUY 

Current Price: PKR 204.77

Target Price: PKR 214.62


United Bank Limited (UBL) – BUY 

Current Price: PKR 122.10

Target Price: PKR 138.68


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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