Pakistan Stock Exchange (PSX) Weekly Analysis 30 November, 2020

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

Top gainers of last week were:  TRG, SYS, POL, PSX, and LOTCHEM.

Top losers of last week were: SNGP, GATM, FFBL, IGHL, and FCEPL. 

Top volume leaders of last week were: UNITY, TRG, MLCF, HASCOL, and HUMNL. 

The Pakistan Stock Exchange (PSX) market index bounced back from the bearish spell of the past week as optimism over progress in vaccines rejuvenated investors’ interest. KSE-100 index closed on 40,807 by gaining 620 points or 1.54 %, while KSE-30 index closed on 17,160 by gaining 257 points or 1.52%.

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

  • Monetary policy announcement of interest rates maintained at 7% in scheduled MPC meeting, despite negative real interest rates, resulted in some exuberance among investors
  • Government mulling over measures to contain rising cases of COVID-19, hinting a complete lockdown
  • IMF hinting at government’s need to undertake unpopular measures (electricity and gas rate hikes, targeting higher tax collection, etc) to resume the IMF program further dampened the sentiments
  • A rise in international oil prices on the back of mass availability of vaccines in 2021 brought interest in index heavy weight E&Ps in the remaining trading sessions, where profit taking in the last trading session pared some of the gains
  • Average daily turnover during the week also increased 63.4% WoW to 279.8mn shares
  • Pakistan secures $800m in debt relief from 14 members of the richest club of G-20 countries, as it still awaits ratification by remaining six countries
  • IMF talks focus on renewed tax thrust
  • Covid compels govt to shut educational institutions again
  • IPPs refuse to accept Rs400bn proposed payment in three installments
  • Government hints at increasing power, gas tariff in phases
  • SBP’s forex reserves cross $13bn mark
  • Rupee depreciation also sparked hefty selling by investors
  • The average traded volume in benchmark stood at 172 million shares, while the average value stood at Rs8.32 billion
  • The heavyweight oil & gas exploration companies was one of the highest gainers this week, closing up 6.9% week-on-week, on account of higher international oil prices and news sources citing recommendations of dividend based formula to be used to clear the outstanding circular debt
  • Other sectors that contributed to the rally were technology & communication (+8.0%), vanaspati & allied industries (+7.3%) and automobile parts & accessories (+3.1%)
  • Foreigners remained net sellers during the week amounting to $9.26 million, primarily contributed by corporates amounting to $9.87 million
  • Local investors remained net buyers amounting to $9.26 million, mainly contributed individuals ($2.61 million), companies ($3.38 million) and insurance ($2.91 million)
  • PM rules out shutdown of factories & businesses and banking sector’s spread jumped 8bps month-on-month in October


Following are few BUY recommendations:


Attock Cement Ltd. (ACPL) – BUY 

Current Price: PKR 141.90

Target Price: PKR 180.0


Attock Petroleum (APL) – BUY 

Current Price: PKR 321.36

Target Price: PKR 378.8


Amreli Steels Ltd. (ASTL) – BUY 

Current Price: PKR 40.11

Target Price: PKR 56.00


Bank Al-Falah (BAFL) – BUY 

Current Price: PKR 34.63

Target Price: PKR  51.00


Bank of Punjab (BOP) – BUY 

Current Price: PKR 8.89

Target Price: PKR 13.90


Engro Fertilizer (EFERT) – BUY 

Current Price: PKR 60.82

Target Price: PKR 73.0


ENGRO Corporation (ENGRO) – BUY 

Current Price: PKR 306.78

Target Price: PKR 331.10


Fatima Fertilizer (FATIMA) – BUY 

Current Price: PKR 28.35

Target Price: PKR 35.75


Fauji Fertilizer Bin Qasim (FFBL) – BUY 

Current Price: PKR 20.58

Target Price: PKR 30.0


Fauji Fertilizer Company (FFC) – BUY 

Current Price: PKR 104.12

Target Price: PKR 130.0


Feroze1888 Mills Ltd. (FML) – BUY 

Current Price: PKR 99.21

Target Price: PKR 112.4


Gul Ahmed Textile Mills (GATM) – BUY 

Current Price: PKR 31.77

Target Price: PKR 47.8


Habib Bank Limited (HBL) – BUY 

Current Price: PKR 129.91

Target Price: PKR 154.40


Habib Metropolitan Bank (HMB) – BUY 

Current Price: PKR 36.90

Target Price: PKR 45.70


HUB Power Co. (HUBCO) – BUY 

Current Price: PKR 78.91

Target Price: PKR 101.05


ICI Pakistan Ltd. (ICI) – BUY 

Current Price: PKR 703.02

Target Price: PKR 870.0


Indus Motors (INDU) – BUY 

Current Price: PKR 1,151.34

Target Price: PKR 1,375.00


Kot Addu Power Co. (KAPCO) – BUY 

Current Price: PKR 28.28

Target Price: PKR 46.8


Lotte Chemical Pak Ltd. (LOTCHEM) – BUY 

Current Price: PKR 12.95

Target Price: PKR 14.1


Lucky Cement (LUCKY) – BUY 

Current Price: PKR 648.63

Target Price: PKR 761.30


Muslim Commercial Bank (MCB) – BUY 

Current Price: PKR   174.71

Target Price: PKR 211.00


Meezan Bank Limited (MEBL) – BUY 

Current Price: PKR   93.84

Target Price: PKR 100.00


Maple Leaf Cement (MLCF) – BUY 

Current Price: PKR   39.00

Target Price: PKR 47.40


National Bank of Pakistan (NBP) – BUY 

Current Price: PKR 40.01

Target Price: PKR 45.60


Nishat Chunian Limited (NCL) – BUY 

Current Price: PKR 38.65

Target Price: PKR 47.5


Nishat Chunian Power Limited (NCPL) – BUY 

Current Price: PKR 13.42

Target Price: PKR 27.0


Nishat Mills (NML) – BUY 

Current Price: PKR 90.22

Target Price: PKR 134.8


Nishat Power Limited (NPL) – BUY 

Current Price: PKR 22.75

Target Price: PKR 31.1


Oil & Gas Development Co. (OGDC) – BUY 

Current Price: PKR 99.60

Target Price: PKR 156.9


Pak Elecktron Ltd. (PAEL) – BUY 

Current Price: PKR 32.39

Target Price: PKR 37.37


Pakistan Oil Limited (POL) – BUY 

Current Price: PKR 392.41

Target Price: PKR 563.0


Pakistan Petroleum (PPL) – BUY 

Current Price: PKR 90.15

Target Price: PKR 143.40


Pakistan State Oil (PSO) – BUY 

Current Price: PKR 192.06

Target Price: PKR 214.62


United Bank Limited (UBL) – BUY 

Current Price: PKR 118.67

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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