Pakistan Stock Exchange (PSX) Weekly Analysis 5 October, 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 losers of last week were: HASCOL, TRG, SYSTEMS, UBL, and HUBCO


The Pakistan Stock Exchange (PSX) market index experienced nothing less than bloodbath in three of the five sessions in the outgoing week. KSE-100 index closed on 40,070.83 by losing 1630 points or - 3.9%. 


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


  • The downward trajectory was seen on back of unfolding developments on the political front
  • Participants reacted negatively to the political uncertainty caused in the wake of Pakistan Muslim League-Nawaz (PML-N) President and leader of opposition in the National Assembly Shehbaz Sharif being arrested by the National Accountability Bureau (NAB) in a money laundering case
  • The major blow to investor sentiments was delivered by the flare up in political temperature after the opposition coalition meetings which were also addressed by the former PM Nawaz Sharif from London
  • Concerns mounted when an Islamabad accountability court indicted former president Asif Ali Zardari in a mega money laundering case, also weighing on the overall sentiments
  • Increasing coronavirus cases and news of government imposing micro-smart lockdown in Karachi also kept the market under pressure
  • A drop in global crude oil prices and unimpressive financial results in index-heavy sectors also impacted the mood
  • US President Donald Trump confirmed rumours of him testing positive of coronavirus, which turned investors’ sentiment sour
  • Investors chose to stay on the sidelines as average volumes settled at 391 million shares (down 16% week-on-week) while average traded value clocked-in at $83 million (up2% week-on-week)
  • Negative contributions came from fertiliser (190 points), cement (179 points), oil and gas marketing companies (164 points), oil and gas exploration companies (159 points), and commercial banks (157 points)
  • Negative contributions were led by Hascol Petroleum (61 points), TRG Pakistan (61 points), Systems Limited (60 points), UBL (58 points) and Hubco (57 points)
  • Foreign selling continued this week clock- ing-in at $8.3 million compared to a net sell of $10.5 million last week. Selling was witnessed in commercial banks ($4.2 million) and ce- ment ($3.2 million). On the domestic front, major buying was reported by insurance com- panies ($15.4 million) and banks/development financial institutions ($12.4 million)
  • World Bank agreed to grant $450 million loan for renewable energy projects in Pakistan
  • POL sales declined 2% month-on-month in September
  • FBR surpassed tax collection target for 1QFY21 and the government kept petrol prices unchanged
  • The government appointed Tabish Gauhar as a special assistant to the prime minister on power
  • The government set export targets for the next five years, depending upon economic conditions, global situation and currency movement
  • The Federal Board of Revenue (FBR) extended the date for filing income tax returns/ statements till Dec 08, 2020
  • The Economic Coordination Committee approved over 19 billion rupees to start the implementation of retrenchment plan of Pakistan Steel Mills on immediate basis
  • SSGC started supplying up to 180 mmcfd of gas to K-Electric as the Gas shortfall in Sindh has reduced from 150 to 100 mmcfd, with pressure of gas also improving considerably


Following are few BUY recommendations:


Attock Cement Ltd. (ACPL) – BUY 

Current Price: PKR 154.01

Target Price: PKR 180.0


Attock Petroleum (APL) – BUY 

Current Price: PKR 343.41

Target Price: PKR 378.8


Amreli Steels Ltd. (ASTL) – BUY 

Current Price: PKR 41.22

Target Price: PKR 56.00


Bank Al-Falah (BAFL) – BUY 

Current Price: PKR 34.54

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 60.00

Target Price: PKR 73.0


ENGRO Corporation (ENGRO) – BUY 

Current Price: PKR 299.71

Target Price: PKR 331.10


Fatima Fertilizer (FATIMA) – BUY 

Current Price: PKR 28.59

Target Price: PKR 35.75


Fauji Fertilizer Bin Qasim (FFBL) – BUY 

Current Price: PKR 19.33

Target Price: PKR 30.0


Fauji Fertilizer Company (FFC) – BUY 

Current Price: PKR 107.50

Target Price: PKR 130.0


Feroze1888 Mills Ltd. (FML) – BUY 

Current Price: PKR 100.15

Target Price: PKR 112.4


Gul Ahmed Textile Mills (GATM) – BUY 

Current Price: PKR 36.17

Target Price: PKR 47.8


Habib Bank Limited (HBL) – BUY 

Current Price: PKR 131.04

Target Price: PKR 154.40


Habib Metropolitan Bank (HMB) – BUY 

Current Price: PKR 34.00

Target Price: PKR 45.70


HUB Power Co. (HUBCO) – BUY 

Current Price: PKR 78.76

Target Price: PKR 101.05


ICI Pakistan Ltd. (ICI) – BUY 

Current Price: PKR 731.62

Target Price: PKR 870.0


Kot Addu Power Co. (KAPCO) – BUY 

Current Price: PKR 25.66

Target Price: PKR 46.8


Lotte Chemical Pak Ltd. (LOTCHEM) – BUY 

Current Price: PKR 11.37

Target Price: PKR 14.1


Lucky Cement (LUCKY) – BUY 

Current Price: PKR 639.62

Target Price: PKR 761.30


Muslim Commercial Bank (MCB) – BUY 

Current Price: PKR   175.71

Target Price: PKR 211.00


Meezan Bank Limited (MEBL) – BUY 

Current Price: PKR   79.01

Target Price: PKR 100.00


National Bank of Pakistan (NBP) – BUY 

Current Price: PKR 39.52

Target Price: PKR 45.60


Nishat Chunian Limited (NCL) – BUY 

Current Price: PKR 38.55

Target Price: PKR 47.5


Nishat Chunian Power Limited (NCPL) – BUY 

Current Price: PKR 13.60

Target Price: PKR 27.0


Nishat Mills (NML) – BUY 

Current Price: PKR 99.68

Target Price: PKR 134.8


Nishat Power Limited (NPL) – BUY 

Current Price: PKR 22.21

Target Price: PKR 31.1


Oil & Gas Development Co. (OGDC) – BUY 

Current Price: PKR 101.11

Target Price: PKR 156.9


Pakistan Oil Limited (POL) – BUY 

Current Price: PKR 410.31

Target Price: PKR 563.0


Pakistan Petroleum (PPL) – BUY 

Current Price: PKR 89.58

Target Price: PKR 143.40


Pakistan State Oil (PSO) – BUY 

Current Price: PKR 194.48

Target Price: PKR 214.62


United Bank Limited (UBL) – BUY 

Current Price: PKR 116.83

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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