Karachi stock exchange-100 index has witnessed a positive week and managed to gain 353 points despite the viable depletion in the foreign exchange reserves and external economic woes. The bullish trend remains dominated till the Wednesday. But on Thursday onwards due to foreign selling, profit taking activities and due to the negative news about fiscal account policy made the situation worse. In various sectors, The oil and gas sector contributed with 149 points along with OMC’s (33 points), commercial bank (57 points), Power generation sector (25 points) and tobacco (29 points). On the other side, automobile sector, and textile sector added negative points of 20 and 7 respectively
In last week the Investors adopted a cautious approach and stayed away from investing and remained on the sidelines. Foreign investors have net selling of $10.4 million that is mostly done on the mutual funds. The investment was done in the oil, banking, technology and telecommunication sectors. Local investors sold $16.9 million.
Analysts at Money and matters are expecting mixed sentiments at the Pakistan stock market. The further devaluation of rupee can create problems for the domestic stock market. The devaluation of PKR/USD will increase the current account deficit. The government has decided to raise the prices of oil and gas up to 6 to 7%. The next 4-6 months for the long-term investors to build a profitable portfolio. They have to keep a close eye on the blue-chip companies to formulate the perfect stock picking strategy.