Karachi stock exchange-100 index has seen a positive week as it climbed up 530 points during the week.The fluctuations in the international oil prices and appreciation of prices in the domestic cement market have helped in the upward movement of the Pakistan stock market.
The increase in the cement prices has really helped institutional and individual investors to earn some bucks.The foreign investors are showing lots of interest in the Pakistan stock market.They purchased net equities of $ 1.9 million during the week.
Karachi stock exchange-100 index started the week at 45030 points and ended the week at 45560 points.
The experts at Money and Matters are predicting a positive week at the Pakistan stock market.The negative macroeconomic indicators and fluctuations in the international oil and cement prices can affect the domestic stock market.
The foreign exchange reserves of Pakistan quickly depleting and they are making life difficult for its economic managers. Economic experts believe that financial managers of the country have to contact IMF for the rescue.Since,country may have to burriow large amount of loan from IMF.The deteriorating economic conditions can put pressure on the stock market in upcoming weeks. These types of things can really create doubts in the minds of domestic and foreign investors.The devaluation of rupee can also affect the net revenues of the companies who rely on the imports.
The geopolitical uncertainty is badly affecting the oil market supply in the international oil market.Oil experts claim that international oil prices may cross $ 70-/barrel market in next few days.The deteriorating US-Iran relations are affecting the oil prices.However, it is a very good opportunity for the short run investors to earn short-term gains from trading in the oil-based stocks.
Long-term traders must hold their investments in blue-chip stocks in growing sectors. The cement, steel and banking sectors are three growing sectors of the Pakistani economy.The pre-election period is very important for building a profitable long-term portfolio.