Pakistan stock market saw a positive week as Karachi stock exchange-100 index climbed 1894 points during the week.The oil prices increase ,heavy profit taking by investors and pre budget uncertainty were three major factors affecting the Pakistan stock market. The index crossed the 53000 points barrier and currently it is at its highest point. Domestic investors showed considerable interest in the market. But foreign investors are still confused about the future of the market and they remained net sellers in the trading week. Foreign investors bought net equities of about $ 6.5 million during the week.
Karachi stock exchange-100 index started the week at 51750 points and ended the week at 52636 points. The weekly share trading volume showed an increase as compared to the last week’s volume of 1755 million shares.
Pakistan stock market started the week on a positive note as international oil prices surge helped Karachi stock exchange-100 index gain 631 points during first trading day of the week. Karachi stock exchange-100 index rose by 1262 points during the last 4 days of the trading week. The fluctuations in the oil prices and MSCI inclusion were two important reasons for this rise in the Karachi stock exchange-100 index .
Best and Worst Performing sectors
Oil/Gas,fertilizers and banking sectors were major performing sectors at the Pakistan stock market. The heavy weight shares like OGDCL,Engro,Hubco,PPL and HBL added 720 points collectively to the Karachi stock exchange-100 index during the week. Transport and sugar sectors were the worst performing sectors of the week.
Market analysts are expecting a mixed sentiment in the next week as investors may book their profits after investing in MSCI based stocks last week. Moreover,political uncertainty and international oil prices fluctuations can affect the investing behaviors at the Pakistan stock market.
JIT formed by SC is currently carrying on the Panama leaks investigation.The investigation is in its final phases and JIT may submit its report in next few weeks.Most of the legal experts agree on this point that disqualification of the Prime Minister is certain after final JIT report.So, it will certainly create uncertainty in the Pakistan stock market. Therefore,investors have to keep a careful eye on the individual sector performances rather than overall market index.
International oil prices are showing fluctuations due to international politics and OPEC policies.The crude oil started the week at $ 50.60/barrel and ended the week at $ 49.80/barrel .OPEC and its ally countries have decided to cut their output .These countries will reduce their production for the next nine months till the march 2018.The decision to reduce the production will certainly help the oil prices to improve in the current year.This is very good opportunity for the short and long run investors to earn handsome returns from their oil based shares.They can also earn short run profit through using day trading strategies during volatile weeks.