Pakistan stock market is passing through a very difficult as the country is getting ready for the general elections. Karachi stock exchange -100-index climbed up by 950 points during the week. The political and economic uncertainty is badly damaging the confidence of the foreign and domestic investors.
Domestic investors showed some interest in the Pakistan stock market during the week. However, foreign investors sold net equities of $ 22 million during the week.
Karachi stock exchange-100 index started the week at 40271 points and ended the week at 41221 points.
The experts at Money and Matters are expecting a mixed week at the Pakistan stock market. The political uncertainty is reached its height as elections are near. The rupee devaluation, political uncertainty, and fluctuations in the international oil prices fluctuations can badly affect the Pakistan stock market in upcoming days.
The disqualifications of PML-N leaders is creating political uncertainty. The corruption cases against the PPP leadership are also coming into the limelight and this is hurting the reputation of the PPP.It is expected that Ex-President Zardari will be convicted in NAB courts. Any decision against the Zardari family can create more uncertainty in the market.
The market will react positively to the safe transfer of power after the general elections 2018. However, new government has to face macroeconomic challenges that are badly affecting the economy and the Pakistan stock market. The new government has to put brakes on the sliding rupee and rising current account deficit.Economic experts are predicting a further devaluation of the Pakistani rupee after general elections.
Long-term traders must invest in high growth sectors such as cement and steel . This is an ideal time to accumulate stocks for value investing. Since, blue-chip stocks are available at very cheap prices and KSE-100 index is also at very low P/E. It is estimated that Karachi stock exchange-100 index may reach 50000 points at the end of this year . Therefore, it is the best time to create a fundamentally strong investment portfolio.