Home » Investing » Karachi stock exchange -100 index climbed 759 points
Drowning in credit debt?

Karachi stock exchange -100 index climbed 759 points

Pakistan Stock market saw a positive week as Karachi stock exchange -100 index climbed 759 points during the week.The international oil prices saw a decent recovery and that helped the market to enter into positive zone.The oil prices started the week at $ 45.93/barrel and ended the week at $ 48.24 /barrel.The auto sector also attracted considerable investment from investors.The investors  mostly focused their trading in mid and small cap shares.
The domestic and foreign investors mostly showed their interest in small and mid cap stocks.The foreign investors offloaded net equity of $ 8.6 million as compared to the last week’s figure of $ 16.04 million.
The Karachi stock exchange -100 index started the week at 39781 points and ended the week at 40541 points .The weekly share trading volume showed a 27 % decrease as compared to the last week’s trading volume. This weekly trading volume was 2540 million shares in the current week.The stock market also touched record share volume of  712 million shares on Thursday.


The stock market started the week at  positive note as Karachi stock exchange -100 index climbed 438 points on first day of the trading week.Investors showed high level interest in the small and mid cap stocks.The index continued its  surge in the remaining days of the trading week.The recovery in the international oil prices and good performance of the local auto sector were two important reasons for this surge.


Best and worst Performers

Banking,auto and oil sectors were best performing sectors at the stock market.The automobile sector gained 7.7 % during the week followed by Oil/Gas and commercial bank sectors.Oil/Gas and commercial banks grew by 1.9 % and 1.3 %.

Sectors to watch

OPEC has decided to reduce its production in the wake of falling international oil prices.Market analysts are expecting a much needed boost to Pakistan oil sector in the near future.It is expected that share prices of  companies of this sector will surely rise in upcoming days.So oil sector companies can be a good investment option in the short run.

Cement sector is another very important sector for the investors. Pakistan cement sector companies are attracting huge investment after the announcement of the CPEC. This sector is a very good investment option for the long run.

Auto sector is also performing well after increase in the demand of automobiles in the country.It is also a very good investment option for short run.

Future Outlook

Market analysts are expecting a positive sentiment in the upcoming week.The recovery in the oil prices and very encouraging performance of the auto sector are two main reasons for their optimism. Cement sector is also attracting considerable investment for last few months.
The military standoff between India and Pakistan is creating lots of problems for the stock markets of both countries.The Bombay stock exchange fell by 465 points on Thursday. Pakistan stock market continued its positive performance but conflict between India and Pakistan can still affect stock markets of both countries in upcoming days.India and Pakistan must improve their relations to save their countrymen from the adverse affects of the war.

PTI has decided to lock down the federal capital Islamabad after the start of the November 2016.It can really affect the local stock market. Government can still solve the Panama leaks issue through political consultation.

About Emaad Qureshi