NOTE: All statistics and prices mentioned in this article are as up to date as of 20 April, 2020. Please perform financial activities after a thorough research of your own and at your own risk. The article below provides a general over-view of what the conditions are. The coming days may evolve different conditions, contrary to the predicted figures.
With the advent of the year 2020, the global stock market has been on a roller-coaster ride. From the very beginning of the year, multiple crises have struck the world, which have rendered the market community to undergo a frenzy spiral. From a potential world war 3 to the most intelligent species crumbling to the ground because of an invisible virus, no-one in one’s right mind would expect a healthy stock market.
“Our gut tells us that a 50% or deeper decline from the February top might be the ultimate path of global stock markets," Paul Singer’s Elliott Management says in an investor letter https://t.co/aJRkNwHUff
— Lisa Abramowicz (@lisaabramowicz1) April 16, 2020
But when things get uncertain, it is a golden opportunity to invest in companies with the consequent lower share price. Before we go ahead and enlist the best stocks to buy in Pakistan right now, we might need to understand some terms.
This is the minimum price at which a company would like to sell its share to some person. It varies from company to company or stock seller, whether the offer price is flexible and negotiable or firm in its nature. An investor expects this price to go up, hence buys more shares before that happens.
This is the maximum price at which a seller would like to sell his share to some other person. This is generally lower than the ask or offer price, but within decimals mostly. People who look for earning profit from stock market look out for the rise in the bid price. An investor expects this price to go down, hence sells more shares before that happens. This price rises with the rise in offer price, in normal circumstances.
Best Stocks To Buy In Pakistan Right Now
When it comes to Pakistan Stock Exchange, many companies have experienced extremely irregular and unconventional asset trends. Keeping in mind the recent circumstances produced due to the Corona-virus pandemic, we have assembled a list of the best stocks to buy in Pakistan right now.
1. POL – Pakistan Oilfields Limited
Pakistan Oilfields Limited is mainly engaged in the forage, exploration, drilling, and production of crude oil and gas in Pakistan. Their commercial activities include the marketing and transmission of liquified petroleum gas or LPG to the very domestic regions with their label POLGAS.
The company is known to hold an offer price for about an average of 400 per share. But due to the recent pandemic, the new offer price has deteriorated to a great extent. A well established company like this is expected to recover and restrengthen back again. So it is a wise decision to actually invest in its shares.
Old 52 Week High Offer Price: 473.43
New Offer Price: 286.45
HASCOL is mainly engaged in the procurement, storage and distribution of petroleum and petroleum products. HASCOL was started in 2001 as a private limited company and then later on was converted into a public unlisted company.
The drop in the offer price for this company’s share is unreal and very appealing for the ones who believe that it will rise back up again to its full potential after the pandemic ends and commercial activities resume.
Old 52 Week High Offer Price: 96.78
New Offer Price: 14.98
3. PPL – Pakistan Petroleum Limited
Pakistan Petroleum Limited revolves around prospecting and the development and production of plants responsible for the scavenging of natural gas and petroleum. This is one of the oldest companies in Pakistan – with its foundation being laid in 1950.
PPL has also experienced serious drawbacks in its stock market shares with its offer price being cut to half. And to some, buying some shares from this company might end up being critically beneficial in the long term.
Old 52 Week High Offer Price: 178.32
New Offer Price: 85.7
4. PAKT – Pakistan Tobacco Company Limited
Pakistan Tobacco Company Limited is one of the first companies which originated right after the birth of Pakistan. With its foundations dating back to November of 1947, this company has been blooming with the ever increasing demand of tobacco goods. It mainly deals with the manufacturing and sale of cigarettes in Pakistan.
Quite recently, because of the pandemic the company has had to bear some losses. Its very high offer price has stumbled down to about its half. Now might be the best time to avail in investing in the company. With lock-downs being removed, the CEO of PAKT Usman Zahur hopes of recovering very soon, with its offer price rising again sharply.
Old 52 Week High Offer Price: 2,680
New Offer Price: 1,543.83
5. PMPK – Philip Moris (Pakistan)
Philip Moris (Pakistan) is a part of a leading international tobacco manufacturing company that shares one of the highest share prices in Pakistan Stock Exchange. Based in New York, this company is one money pot for a lay man’s perspective.
However, the pandemic is ruthless, and so is the fall in this company’s share price. This company has lost a whopping bit of a deal in its stock market, a consequence of decreased global trading.
Old 52 Week High Offer Price: 4,009
New Offer Price: 1,941
The interesting part is that most analysts believe that the stock market is not done crashing to its full extent, just yet. Experts suggest that due to the possibility of prolonged lock-downs and slow economic activities, the global market is highly likely to drop its peak more than expected.
Near to some it might be a good idea to delay their investments up till June. With the arrival of a new budget in Pakistan, things usually go uncertain and sometimes result in humongous losses ranging from thousands to billions of rupees.
Only when things start to appear clear, it will be a good idea to invest, but not too vivid for the companies to revive enough to actually increase their shares’ price. Tricky game, if well played, is worth the effort.
Do you think we missed something? Do let us know in the comments.
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