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Karachi stock exchange -100 index climbed 658 points

Pakistan stock market saw  a positive week as Karachi stock exchange-100 index rose by 658 points during the week. Investors showed special interest in the Cement,banking and the oil sector stocks.The international oil price showed a decent recovery in the international market and that attracted  investment in oil based stocks.

Karachi  stock exchange-100 index started the week at 40541 points and ended the week at 41200 points. The weekly share trading volume increased by 14.5 % as compared to the last week’s volume. The weekly  share trading volume was 3025 million shares as compared to last week’s volume of 2540 million shares.


Pakistan stock market started the week at a positive note and Karachi stock exchange-100 index 445 points on the first day of the trading week.The decent recovery in the oil prices helped the stock market to rise in the first day.Karachi  stock exchange-100 index continued its upward journey till it touched all time high point of  41253 points on October 05 2016.We saw a correction on the last day as investors were busy in the profit taking.

Best performing sectors

Oil/Gas,Cement,fertilizers and banking sectors were best performing sector at the Pakistan stock market.These sectors helped Karachi  stock exchange-100 index to reach its all time high point. Fertilizer and cement sectors rose by 2.2 % and 1.9 %.The banking sector stocks rose by 1.4 % during the week.

Best way cement,Cherat cement,UBL and Mari .Petroleum were four best performing shares in above-mentioned sectors.The share prices of Best way cement,Cherat cement,UBL and Mari Petroleum increased by 0.80 %,9.40 %,2.9 % and 1.75 % respectively.

Future Outlook

Market analysts are expecting a mixed week at the Pakistan stock market.They are  expecting a low trading volumes  due to the shortened trading week due to Moharram holidays.Investors are also waiting for the upcoming SBP monetary policy .Fertilizer,energy and cement sectors will play an important role in affecting the market sentiment in upcoming days.

Domestic and regional political developments can also affect the investing behaviors of the stock traders. PTI is increasing pressure on PML-N government.The failure of PML-N government to address the problems is creating political instability in the country.The Indian aggression is also creating problems for Pakistan at borders.

Oil and gas sector can be a good investment option in the short run as OPEC has announced to cut its production. It is expected that decrease in production will increase its prices in the short run.

Cement is the most attractive sector for investment in the Pakistan stock market. It is expected that cement sector will continue its upward journey in next few years.So this means that it is a very good investment option for both short and long run. CPEC related projects are paving way for the long term growth of  cement sector. CPEC will help cement sector to grow as construction and infrastructure related projects are very important component of the CPEC.  Top stocks of the cement sector have showed a decent growth in last 2 months.Its top stocks such as Attock cement, bestway cement and Cherat cement have increased by 22.5 %,77.61 % and 59 % respectively  since the start of august 2016.

Fertilizer sector is a very good investment option for the short run.Stock investors can add fertilizer stocks in their overall portfolio to maximize their short term gains in stock market.

About Emaad Qureshi