Blue Chip Companies in Pakistan Stock Exchange

What is meaning of term Blue Chip?

The term blue chip originates from the game of poker, where players use different color chips i.e. white, red and blue. The blue color chips are highest in value on the game among all the chips. Hence the term blue-chip is used in stock market to describe those companies which are well-known, well-established and with huge market capitalization. Blue Chip Company is often the leading company of its sector with consistent growth and profits. So the blue-chip stock (also known as blue chip share) is the share of blue-chip Company in the market. In this post we will tell you about the blue chip companies in Pakistan Stock Exchange.

Why to invest in blue-chip companies?

Due to consistent history of growths and profits, the investment in blue-chip companies is considered safe and less risky. If you invest in new company, it is risky investment because you can earn huge profits but on the contrary you can also face huge losses. But investment in blue-chip companies can provide you consistent and steady return on your investment. So to sum up blue-chip company must have following characteristics;

• Reputable Company
• Mature Company
• History of Dividend payment
• History of consistent earnings
• Leader of its Sector
• Leader in Market Capitalization
• Huge average trading volumes
• House-hold Name

Blue-Chip Companies in Pakistan Stock Market

There are many blue-chip companies in Pakistan Stock Exchange. These are well-known, well-established, financially strong, leaders of their sectors and healthy dividend paying companies. There is one important thing to note about blue chip stocks in Pakistan, that there is no certain criteria for the evaluation and this list may vary from one observer to another but majority of these companies have all the characteristics of a blue chip company as defined above.

Followings are some companies listed in Pakistan Stock Market and their shares are considered as the blue-chip stocks;

• ENGRO – Engro Corporation Limited
• HBL – Habib Bank Limited
• HUBC – Hub Power Company Limited
• FFC – Fauji Fertilizer Company
• MCS – MCB Bank Limited
• OGDC – Oil & Gas Development Company
• PPL – Pakistan Petroleum Limited
• UBL – United Bank Limited
• LUCK – Lucky Cement Limited
• POL – Pakistan Oil Field
• EFERT –                 Engro Fertilizer Company Limited
• DAWN – Dawood Hercules Corporation Limited
• NESTLE – Neslte Pakistan Limited
• PSO – Pakistan State Oil
• SNGP – Sui Northern Gas Pipeline Limited
• SEARL – The Searle Company Limited
• ABOT – Abbott Laboratories Pakistan Limited
• GLAXO – GlaxoSmithKline Pakistan Limited
• FCCL – Fauji Cement Company Limited
• DGKC – DG Khan Cement Company Limited
• EPCL – Engro Polymer Company Limited
• ILP – Interloop Limited
• INDU – Indus Motor Company Limited
• HCAR – Honda Atlas Car Pakistan Limited
• ISL – International Steels Limited
• INIL – International Industries Limited
• PTC – Pakistan Telecommunication Limited