Pakistan stock market saw a positive week as Karachi stock exchange-100 index climbed by 965 points during the week.The political uncertainty ,rising oil prices and good corporate results were three most factors affecting the stock market trading at the Pakistan stock market.
The political noise is still affecting the Pakistan stock market as PML-N government is still looking for the future direction . Foreign investors are still not comfortable with the Pakistan stock market.Therefore,they sold net equities of $ 41 million during the week.
The Karachi stock exchange -100 index started the week at the 44955 points and ended the week at 45920 points .The weekly share trading volume showed an increase of more than 76 % .The Weekly share trading volume was 1745 million shares this week as compared to the volume of 990 million shares in the last week.
Market analysts are expecting a mixed market trend as political uncertainty is increasing in the country .Nawaz Sharif has planned to travel by road from Islamabad to Lahore on Wednesday.Security experts are advising him to cancel his plan as there are serious security threats to him.They are also advising him to take care of his security as traveling by road is not safe for him.In this case,political uncertainty can increase and this can also affect the stock market progress. Moreover,this is a very good time for the value and long run investors to invest in the Pakistan stock market.
International oil prices have crossed $ 50 /barrel last week and it is expected that they will fall below $ 50/barrel this week. The future shale production and OPEC policies will define the oil prices trend in the week. Short run investors can use day trading strategies to earn very good short run returns from their investments.
Cement producers have announced Rs 10/15 increase in the price per bag .This action will bring positive results for the cement sector in upcoming weeks.So,cement sector is offering very good long term investment potential for the long term value investors.