Pakistan Stock Exchange (PSX) Weekly Analysis 26 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.


Volume leaders of last week were: UNITY, PIBTL, HASCOL, MLCF, PRL, and FFL. 


Top gainers of last week were: UNITY, ATRL, CHCC, MLCF, ENGRO, BAHL, LUCK, EFERT, MEBL, BAHL, HUBC and HCAR.


Top losers of last week were: GATU, PPL, ABOT, EPCL, NML, and OGDC. 


The Pakistan Stock Exchange (PSX) market index the week began as well as ended on a positive note on account of improving external situation and PKR stability, which smoothened cost pressures for import reliant sectors. KSE-100 index closed on 41,266 by gaining 1102 points or 2.74 %. While KSE-30 index closed on 17,381 by gaining 446 points or 2.64%. 


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


  • The FATF decided to keep the country on grey list until February 2021 as the watchdog found that Pakistan had successfully complied with 21 out of 27 points of action
  • Long consumer cyclicals (Cements, Autos, Edible Oils) as an improving external situation and PkR stability eases cost pressures for import reliant sectors
  • Earnings outperformance for the latest reported period (4QFY21/3QCY20) for Banks and Fertilizers, where resumption of payouts for Banks was a notable catalyst
  • Pakistan posted US$73mn current account surplus in Sept’20 compared to US$211mn in Aug’20, where on a cumulative 1QFY21 basis current account surplus of U$792m was achieved against a deficit of $1.5 billion recorded in 1QFY20
  • The ECC approved supply of RLNG till the end of Nov’20, ensuring the supply of RLNG to fulfill the requirements of two fertilizer plants namely Agritech and Fatima Fertilizer
  • Drug Regulatory Authority of Pakistan (DRAP) has fixed the maximum retail prices (MPR) of 253 drugs on the basis of its packing sizes with certain other conditions
  • Govt. has agreed to give tax concessions to Pakistan’s big retailers in return for their commitment to documenting their businesses
  • Major companies reporting earnings over the coming week include NBP, PSO, FFBL, MCB and PAEL, amongst others, likely to keep volumes buoyant
  • The ECC approved supply of RLNG till the end of November 2020
  • Figures released by NCCPL showed that foreign investors sold USD 6.87 million worth of stocks during the week with foreign corporates doing the bulk of selling @ USD 9.61 million
  • On the local front, Mutual Funds purchased USD 7.61 million worth of stocks, followed by USD 4.7 million worth of stocks bought by companies
  • Other significant transactions included USD 7.7 million worth of stocks sold by Banks/DFIs
  • Despite stable oil prices in the international market, bears dominated the oil sector due to the ongoing corporate result announcements
  • Sectors contributing to the performance included cement (+92 points), insurance (+20 points), fertiliser (+13 points), banks (-31 points), exploration and production (-18 points) and power (-11 points)
  • Among major result announcements were Maple Leaf Cement (+3.5%) and DG Khan Cement (+1.4%)
  • Maple Leaf Cement recorded earnings per share (EPS) of Rs0.51 for Jul-Sept 2020 compared to loss per share of Rs1.41 in the corresponding quarter of last year, which was above market expectations
  • DG Khan Cement reported consolidated 1QFY21 loss per share of Rs0.67 versus loss per share of Rs3.30 in the same period of last year
  • Trading volumes fell to 354.4 million shares compared with Thursday’s tally of 500.1 million. The value of shares traded during the day was Rs15.6 billion
  • The share issue of Agha Steel Industries consisted of 120 million ordinary shares or 20.83% of the total post-IPO paid-up capital of the company


Following are few BUY recommendations:


Attock Cement Ltd. (ACPL) – BUY 

Current Price: PKR 162.04

Target Price: PKR 180.0


Attock Petroleum (APL) – BUY 

Current Price: PKR 342.07

Target Price: PKR 378.8


Amreli Steels Ltd. (ASTL) – BUY 

Current Price: PKR 43.52

Target Price: PKR 56.00


Bank Al-Falah (BAFL) – BUY 

Current Price: PKR 33.27

Target Price: PKR  51.00


Bank of Punjab (BOP) – BUY 

Current Price: PKR 9.36

Target Price: PKR 13.90


Engro Fertilizer (EFERT) – BUY 

Current Price: PKR 65.86

Target Price: PKR 73.0


ENGRO Corporation (ENGRO) – BUY 

Current Price: PKR 318.34

Target Price: PKR 331.10


Fatima Fertilizer (FATIMA) – BUY 

Current Price: PKR 30.25

Target Price: PKR 35.75


Fauji Fertilizer Bin Qasim (FFBL) – BUY 

Current Price: PKR 21.00

Target Price: PKR 30.0


Fauji Fertilizer Company (FFC) – BUY 

Current Price: PKR 108.04

Target Price: PKR 130.0


Feroze1888 Mills Ltd. (FML) – BUY 

Current Price: PKR 107.00

Target Price: PKR 112.4


Gul Ahmed Textile Mills (GATM) – BUY 

Current Price: PKR 38.18

Target Price: PKR 47.8


Habib Bank Limited (HBL) – BUY 

Current Price: PKR 138.78

Target Price: PKR 154.40


Habib Metropolitan Bank (HMB) – BUY 

Current Price: PKR 36.53

Target Price: PKR 45.70


HUB Power Co. (HUBCO) – BUY 

Current Price: PKR 77.04

Target Price: PKR 101.05


ICI Pakistan Ltd. (ICI) – BUY 

Current Price: PKR 706.20

Target Price: PKR 870.0


Kot Addu Power Co. (KAPCO) – BUY 

Current Price: PKR 28.68

Target Price: PKR 46.8


Lotte Chemical Pak Ltd. (LOTCHEM) – BUY 

Current Price: PKR 12.29

Target Price: PKR 14.1


Lucky Cement (LUCKY) – BUY 

Current Price: PKR 660.94

Target Price: PKR 761.30


Muslim Commercial Bank (MCB) – BUY 

Current Price: PKR   170.27

Target Price: PKR 211.00


Meezan Bank Limited (MEBL) – BUY 

Current Price: PKR   91.05

Target Price: PKR 100.00


National Bank of Pakistan (NBP) – BUY 

Current Price: PKR 41.22

Target Price: PKR 45.60


Nishat Chunian Limited (NCL) – BUY 

Current Price: PKR 37.60

Target Price: PKR 47.5


Nishat Chunian Power Limited (NCPL) – BUY 

Current Price: PKR 14.20

Target Price: PKR 27.0


Nishat Mills (NML) – BUY 

Current Price: PKR 97.56

Target Price: PKR 134.8


Nishat Power Limited (NPL) – BUY 

Current Price: PKR 23.20

Target Price: PKR 31.1


Oil & Gas Development Co. (OGDC) – BUY 

Current Price: PKR 97.55

Target Price: PKR 156.9


Pakistan Oil Limited (POL) – BUY 

Current Price: PKR 356.26

Target Price: PKR 563.0


Pakistan Petroleum (PPL) – BUY 

Current Price: PKR 85.51

Target Price: PKR 143.40


United Bank Limited (UBL) – BUY 

Current Price: PKR 121.76

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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