Pakistan Stock Exchange (PSX) Weekly Analysis 19 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, and UBL.

Top losers of last week were: HUBC, PPL, OGDC, POL and MCB. 

The Pakistan Stock Exchange (PSX) market index Bears regained control of the Pakistan stock market in the outgoing week as looming uncertainty on the political front coupled with rising cases of Covid-19 across the country drove the index back into the negative territory. KSE-100 index closed on 40,164 by gaining 634 points or 1.6 %. 


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


  • Political noise and uptick in Covid-19 cases in the country wiped off most of last week’s gains made at the local bourse this week
  • Trading remained under pressure on back of concerns over rising inflationary levels, news flows citing hurdles over continuation of the International Monetary Fund (IMF) Programme, and aggression from the opposition
  • A sharp rise in the coronavirus cases also sparked fears of another lockdown, which did not bode well with the participants and prompted them to divest their stakes
  • The forthcoming Financial Action Task Force (FATF) meeting, scheduled to take place late in October, continued to weigh on investors’ mind
  • Encouraging remittances figures, which depicted inflows staying above $2 billion for the fourth successive month in September 2020, failed to entice market participants to take positive positions in the market
  • The rising political noise also deterred the market from posting gains
  • The Pakistani rupee also staged a modest recovery during the week and closed at a five-month high level of 162.49 against a dollar, which triggered an uptrend in the stock market
  • Average daily volumes clocked-in at 296 million shares (down 29% week-on-week) while average value traded settled at $61 million (up 24% week-on-week)
  • Negative contributions came from oil and gas exploration companies (212 points), cement (116 points), power generation and distribution (60 points), oil and gas marketing companies (56 points), and technology and communication (51 points)
  • Positive contributions were led chemical (16 points) and commercial banks (10 points)
  • World Bank to provide $1.15 billion concessional financing for two power projects in K-P
  • State Bank of Pakistan’s forex reserves fell by over $1 billion in the last four weeks on debt servicing, reaching $11.8 billion
  • IMF forecast 1% growth in FY21 for Pakistan
  • Remittances increased 31% year-on-year in September 2020
  • Auto sales grew 18% year-on-year in September 2020
  • The only silver lining was the start of the corporate results season with financial sector turning out to the harbinger of good news with a couple of banks and investment companies coming up with splendid financial figures
  • Disappointing result from HASCOL (one of the market’s consistent volume leading scrips) middle of the week
  • Economic Coordination Committee (ECC) has approved the import of 340,000 metric tonne wheat

Following are few BUY recommendations:


Attock Cement Ltd. (ACPL) – BUY 

Current Price: PKR 154.81

Target Price: PKR 180.0


Attock Petroleum (APL) – BUY 

Current Price: PKR 344.98

Target Price: PKR 378.8


Amreli Steels Ltd. (ASTL) – BUY 

Current Price: PKR 40.17

Target Price: PKR 56.00


Bank Al-Falah (BAFL) – BUY 

Current Price: PKR 33.80

Target Price: PKR  51.00


Bank of Punjab (BOP) – BUY 

Current Price: PKR 9.24

Target Price: PKR 13.90


Engro Fertilizer (EFERT) – BUY 

Current Price: PKR 61.52

Target Price: PKR 73.0


ENGRO Corporation (ENGRO) – BUY 

Current Price: PKR 296.38

Target Price: PKR 331.10


Fatima Fertilizer (FATIMA) – BUY 

Current Price: PKR 30.77

Target Price: PKR 35.75


Fauji Fertilizer Bin Qasim (FFBL) – BUY 

Current Price: PKR 21.52

Target Price: PKR 30.0


Fauji Fertilizer Company (FFC) – BUY 

Current Price: PKR 106.00

Target Price: PKR 130.0


Feroze1888 Mills Ltd. (FML) – BUY 

Current Price: PKR 105.00

Target Price: PKR 112.4


Gul Ahmed Textile Mills (GATM) – BUY 

Current Price: PKR 37.54

Target Price: PKR 47.8


Habib Bank Limited (HBL) – BUY 

Current Price: PKR 138.61

Target Price: PKR 154.40


Habib Metropolitan Bank (HMB) – BUY 

Current Price: PKR 33.39

Target Price: PKR 45.70


HUB Power Co. (HUBCO) – BUY 

Current Price: PKR 76.11

Target Price: PKR 101.05


ICI Pakistan Ltd. (ICI) – BUY 

Current Price: PKR 693.77

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 12.32

Target Price: PKR 14.1


Lucky Cement (LUCKY) – BUY 

Current Price: PKR 638.46

Target Price: PKR 761.30


Muslim Commercial Bank (MCB) – BUY 

Current Price: PKR   171.28

Target Price: PKR 211.00


Meezan Bank Limited (MEBL) – BUY 

Current Price: PKR   83.81

Target Price: PKR 100.00


National Bank of Pakistan (NBP) – BUY 

Current Price: PKR 38.63

Target Price: PKR 45.60


Nishat Chunian Limited (NCL) – BUY 

Current Price: PKR 38.33

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 102.81

Target Price: PKR 134.8


Nishat Power Limited (NPL) – BUY 

Current Price: PKR 23.40

Target Price: PKR 31.1


Oil & Gas Development Co. (OGDC) – BUY 

Current Price: PKR 101.20

Target Price: PKR 156.9


Pakistan Oil Limited (POL) – BUY 

Current Price: PKR 364.97

Target Price: PKR 563.0


Pakistan Petroleum (PPL) – BUY 

Current Price: PKR 85.03

Target Price: PKR 143.40


United Bank Limited (UBL) – BUY 

Current Price: PKR 122.70

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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