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Karachi stock exchange-100 index climbed by 550 points

Pakistan stock market saw a positive week as Karachi stock exchange-100 index climbed by 550  points during the week.The institutional buying and political uncertainty in the stock market affected the  investing behaviors of the Pakistan stock market. Domestic and foreign investors were discouraged by the company results and they remained net sellers in last few days of the trading week. Foreign investors sold  net equities of about $ 19.3 million during the week.

Karachi stock exchange-100 index started the week at 49301 points and ended the week at 49851 points. The weekly share trading volume showed a decline of 41 % as compared to the last week. The weekly share trading volume was approximately 1056 million shares as compared to the last week’s volume of 1795  million shares.

Pakistan stock market started the week on a negative note on the back of news of tussle between the Army and government due to Dawn leaks issue . The Karachi stock exchange-100 index lost 695 points during first two trading days of the week. Karachi stock exchange-100 index rose by 809 points during the last 2 days  of the trading week.  The institutional buying was the prime mover of the Pakistan stock market in last two trading days of the week .

Best Performers of the week

The stocks included in the MSCI index were the best performing shares during the week.  The banking and cement sector stocks took advantage of the rising Pakistan stock market respectively. HBL , UBL,MCB and Lucky cement grew by 7.4 % ,5%,5.6 %and 6.3 % respectively.

Oil and gas sector was the worst performing sector of the week. Mari Petroleum and Pakistan Oil field were worst performing stocks in this sector as they fell by 3.8 % and 2.6 % respectively.

Future Outlook

Overall Pakistan stock market has a very decent outlook and it is offering very favorable investing environment for the investors.  Market analysts are expecting a mixed sentiment in the next week. The political uncertainty, and oil price fluctuations are expected to move the Pakistan stock market next week.

Dawn leaks and Panama leaks are creating political uncertainty in the country.Supreme Court has finally formed the JIT for the final investigation of the Prime Minister Nawaz Sharif. JIT has to finalize its investigations in next 60 days and these 60 days are very important for the survival of the PM.The tussle between the government and Army increased after the Dawn leaks notification.Political uncertainty will keep the overall market in check during next few weeks.Therefore,investors have to keep an careful eye on the individual sector performances rather than overall market index.Short run investors  can take advantage of high growth stocks such as MSCI index stocks.These stocks are growing as Pakistan stock market will be formally included in the MSCI index on 15th May,2017. MSCI index stocks also offer tremendous investing opportunity for long run investors. Since,MSCI index inclusion will open doors for foreign investment in the Pakistan stock market.

OPEC countries have decided to extend the oil production cut plan to whole 2017.This action will stabilize the oil prices in the international market.Therefore,market experts are expecting an increase in the international oil prices in next week. Short run investors can take advantage of the fluctuating oil prices. So,in this situation investors can  earn short term returns through using day trading strategies.

About Emaad Qureshi