Pakistan stock market saw a positive week as Karachi stock exchange-100 index climbed up by 1244 points during the week.The foreign buying in the blue-chip companies and rising oil prices helped stock market to move up. The Karachi stock exchange -100-index started the week at the 42934 points and ended the week at 44178 points.
The domestic investors and foreign investors showed a considerable interest in the Pakistan stock market.Foreign investors showed a special interest in the Cement and bank sectors.Foreign investors bought net equities of $ 33 million during the week.
The market analysts at Money and Matters are expecting positive sentiments at the Pakistan stock market in upcoming days.Since foreign investors are quite upbeat about the future of undervalued blue-chip companies.These foreign investors are driving the whole market.The stocks of high earning sectors such as Cement are available at very cheap rates.It is expected that this trend will continue in next few weeks.
The joint opposition parties have decided to start a series of protests against the ruling party.The political situation is very tense after the Zainab murder and other murder cases in the country.The opposition is demanding the arrest of all the murderers as soon as possible.The ongoing corruption case of the former disqualified Prime minister has entered into its last month. The corruption cases against PML-N leaders and protests can create political uncertainty in the current week.The finance minister Ishaq Dar is still out of the country and he is not ready to come back.
The international oil prices fell from $ 70.26 per barrel to $ 68.61 per barrel in last one week.The oil market showed a very good strength in this month but oil prices are still facing lots of threats.The Non-Opec countries and U.S oil supplies are increasing with every passing day and it threatens to stop the upward movement of the oil prices.According to the IEA, U.S. oil production is expected to grow 870,000 bpd to 1.1 million bpd in 2018. Moreover, international institutions like OPEC and EIA agree on the fact that US shale production is expected to grow at a very fast rate in next 1-2 years.The downward movement in the oil prices can seriously affect the growth of the Pakistan stock market in next few weeks.
The KSE-100 index continued its upward journey throughout the first month of the current year.The Karachi stock exchange -100- index gained 3708 points or 9.16 % value during 2018. Market analysts are not expecting any large rally till the election 2018. The time period until the election 2018 is a very good time for the value investors looking to build their long-term investment portfolios.It is expected that Karachi stock exchange -100 index will hover between 40000 to 47000 points till the election 2018. Investors can use day trading strategies to earn short run gains through investing in cement , power and oil stocks.This is also very good time for the value investors to search for cheap stocks of highly undervalued companies .