Pakistan Stock Exchange (PSX) Weekly Analysis 2 November, 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: HBL, UBL, POL, ENGRO, and OGDC.


The Pakistan Stock Exchange (PSX) market index took a beating in the outgoing week as the surging coronavirus cases triggered a sell-off. KSE-100 index closed on 39,888 by losing 1,378 points or 3.3 %. 


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


  • The heightening regional political tensions and uncertainty in global financial markets greatly hampered progress
  • Investors were spooked by the arrival of second wave of Covid-19 that was feared to lead to more lock downs that would cast a blow on the economy and the markets
  • Turmoil in global equity markets in the wake of panic selling by investors due to the mounting Covid-19 cases and uncertainty over the impending US presidential elections also sent shockwaves to the domestic bourse
  • Decline in oil prices also exerted pressure on E&P stocks
  • Thursday, which marked the last trading day of the week, witnessed a bloodbath as the KSE-100 index plummeted nearly 1,300 points after government officials expressed concerns over the rising trajectory of corona cases and announced restrictions in an effort to curb it
  • Negative contributions came from commercial banks (499 points), oil and gas exploration companies (247 points), fertiliser (145 points), textile composite (131 points), and oil and gas marketing companies (103 points)
  • Foreign selling continued this week clocking-in at $21.3 million compared to a net sell of $6.9 million last week. Selling was witnessed in cements ($7.6 million) and commercial banks ($4.9 million)
  • On the domestic front, major buying was reported by insurance companies ($7.8 million) and individuals ($6.4 million)
  • Participation inched up as average volumes arrived at 470 million shares (up 1% week-on-week) while average value traded settled at $117 million (up 20% week-on-week)
  • Moody’s assigned first-time B3 rating to Wapda
  • Oil and Gas Regulatory Authority notified increase in gas prices and hike in prices of 94 drugs was notified
  • Pakistan's Forex Reserves decreased by USD 5.10 Million or 0.03% and the total liquid foreign reserves held by the country stood at USD 19,296.50 Million on Oct 23, 2020
  • The Government has decided to reduce the price of various petroleum products from Nov 01, 2020. According to the Ministry of Finance, the price of Petrol has been reduced by Rs.1.57 per liter while the price of high-speed diesel has been cut by Rs0.84 per liter
  • Pakistan has received $2.734 billion foreign aid during 1QFY21 from bilateral and multilateral development partners, foreign commercial borrowing, and time deposits to restructure its economy and finance its development projects
  • In order to facilitate the Telecom sector by the waiver of certain taxes, the Economic Coordination Committee (ECC) decided that the proposal may be granted approval in Principle


Following are few BUY recommendations:


Attock Cement Ltd. (ACPL) – BUY 

Current Price: PKR 147.96

Target Price: PKR 180.0


Attock Petroleum (APL) – BUY 

Current Price: PKR 325.49

Target Price: PKR 378.8


Amreli Steels Ltd. (ASTL) – BUY 

Current Price: PKR 40.23

Target Price: PKR 56.00


Bank Al-Falah (BAFL) – BUY 

Current Price: PKR 33.07

Target Price: PKR  51.00


Bank of Punjab (BOP) – BUY 

Current Price: PKR 8.76

Target Price: PKR 13.90


Engro Fertilizer (EFERT) – BUY 

Current Price: PKR 64.38

Target Price: PKR 73.0


ENGRO Corporation (ENGRO) – BUY 

Current Price: PKR 304.12

Target Price: PKR 331.10


Fatima Fertilizer (FATIMA) – BUY 

Current Price: PKR 27.80

Target Price: PKR 35.75


Fauji Fertilizer Bin Qasim (FFBL) – BUY 

Current Price: PKR 23.27

Target Price: PKR 30.0


Fauji Fertilizer Company (FFC) – BUY 

Current Price: PKR 105.64

Target Price: PKR 130.0


Feroze1888 Mills Ltd. (FML) – BUY 

Current Price: PKR 97.38

Target Price: PKR 112.4


Gul Ahmed Textile Mills (GATM) – BUY 

Current Price: PKR 34.10

Target Price: PKR 47.8


Habib Bank Limited (HBL) – BUY 

Current Price: PKR 130.11

Target Price: PKR 154.40


Habib Metropolitan Bank (HMB) – BUY 

Current Price: PKR 34.49

Target Price: PKR 45.70


HUB Power Co. (HUBCO) – BUY 

Current Price: PKR 81.76

Target Price: PKR 101.05


ICI Pakistan Ltd. (ICI) – BUY 

Current Price: PKR 697.66

Target Price: PKR 870.0


Kot Addu Power Co. (KAPCO) – BUY 

Current Price: PKR 28.14

Target Price: PKR 46.8


Lotte Chemical Pak Ltd. (LOTCHEM) – BUY 

Current Price: PKR 11.25

Target Price: PKR 14.1


Lucky Cement (LUCKY) – BUY 

Current Price: PKR 672.98

Target Price: PKR 761.30


Muslim Commercial Bank (MCB) – BUY 

Current Price: PKR   166.22

Target Price: PKR 211.00


Meezan Bank Limited (MEBL) – BUY 

Current Price: PKR   87.17

Target Price: PKR 100.00


National Bank of Pakistan (NBP) – BUY 

Current Price: PKR 38.96

Target Price: PKR 45.60


Nishat Chunian Limited (NCL) – BUY 

Current Price: PKR 36.16

Target Price: PKR 47.5


Nishat Chunian Power Limited (NCPL) – BUY 

Current Price: PKR 13.33

Target Price: PKR 27.0


Nishat Mills (NML) – BUY 

Current Price: PKR 84.69

Target Price: PKR 134.8


Nishat Power Limited (NPL) – BUY 

Current Price: PKR 22.55

Target Price: PKR 31.1


Oil & Gas Development Co. (OGDC) – BUY 

Current Price: PKR 93.43

Target Price: PKR 156.9


Pakistan Oil Limited (POL) – BUY 

Current Price: PKR 318.57

Target Price: PKR 563.0


Pakistan Petroleum (PPL) – BUY 

Current Price: PKR 82.85

Target Price: PKR 143.40


United Bank Limited (UBL) – BUY 

Current Price: PKR 109.63

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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