Pakistan stock market saw a positive week as Karachi stock exchange-100 index climbed up by 824 points during the last week.The easing of tension between the army and civil leadership has affected the market in a positive way during the week. The Karachi stock exchange -100-index started the week at the 38646 points and ended the week at 39470 points.
The domestic investors showed considerable interest in the domestic stock market.However, foreign investors took a back seat due to the uncertain situation of the Pakistan stock market.Therefore, foreign investors sold net equities of $ 5.4 million during the week.
The market analysts at Money and Matters are expecting mixed sentiments at the Pakistan stock market in upcoming days.The ongoing corruption cases against PML-N leaders and resignations of the PML-N member assembly are creating lots of political noise in the domestic political scene.The finance minister Ishaq Dar is still out of the country and he is not ready to come back.The rumors of early elections and martial law are making the situation even worse.
International oil market experts believe that tensions in the Middle East can drive up the oil prices in the international market to $ 70 in the mid of the next year.The increase in the oil prices will put inflationary pressure on the Pakistan economy and this can also affect the interest rates of the central bank. However, on the otherhand, it will also help the Pakistani oil marketing companies as it will improve their overall earnings.
The KSE-100 index decreased by 17.30 % during the year 2017 and it is expected that it will hover between 37000-40000 points in next few months.Investors can use day trading strategies to earn handsome gains in the oil-based blue chip stocks.This is also very good time for the value investors to search for cheap stocks of highly underavlued companies whose stocks are available at low prices.