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Karachi stock exchange-100 index crossed the record 51000 points

Pakistan stock market saw a positive week as Karachi stock exchange-100 index climbed by 1899 points during the week.The institutional buying  due to MSCI inclusion excitement helped Pakistan stock market to climb up.Karachi stock exchange-100 index first time breached the 51500 points barrier  and currently it is at its highest point. Domestic investors showed considerable interest in the market. But foreign investors are still confused about the future of the market and they remained net sellers in last trading week. Foreign investors sold  net equities of about $ 2.5 million during the week.

Karachi stock exchange-100 index started the week at 49851 points and ended the week at 51750 points. The weekly share trading volume showed an increase of 66.19 % as compared to the last week. The weekly share trading volume was approximately 1755 million shares as compared to the last week’s volume of 1056  million shares.

Pakistan stock market started the week on a positive note as investors were really excited about the MSCI inclusion of the Pakistan stock market in upcoming month.The Karachi stock exchange-100 index gained 1251 points during first three trading days of the week. Karachi stock exchange-100 index rose by 646 points during the last 2 days  of the trading week.  The fluctuations in the oil prices and dawn leaks settlement were two important reasons for this rise in the Karachi stock exchange-100 index  .

Future Outlook

Market analysts are expecting a  positive sentiment in the next week as investors are excited about the MSCI inclusion of the Pakistan stock market. However,political uncertainty and international oil prices fluctuations can stop the upward march of the Karachi stock exchange-100 index.  Market analysts are also expecting a mixed sentiment in the next week. Analysts are also expecting a brief phase of profit taking in the next week.

Dawn leaks and Panama leaks are creating political uncertainty in the country.The JIT formed by the Supreme Court has started working and it is busy in collecting evidences about Panama leaks case.Dawn leaks matter is resolved but still there is confusion over the Dawn leaks report.The dust is settled but still lots of things  are yet to be resolved.Therefore,investors have to keep a careful eye on the individual sector performances rather than overall market index.

MSCI inclusion is creating lots of excitement among the local and foreign investors. By taking advantage of the mentioned scenario,investors should focus on investing in the MSCI based stocks .It will help them to multiply their existing returns. MSCI stocks are growing as Pakistan stock market will be formally included in the MSCI index on 1st June,2017. MSCI index stocks  offer amazing investing opportunity for long run investors. Because,it is well known fact that MSCI index inclusion will open doors for foreign investment in the Pakistan stock market.

The policy of OPEC to extend the oil production cut plan cant control the falling oil prices due to many reasons.The most important reason is the extraction from the US shale energy resources. The shale oil and gas extraction has become easier and cheaper for the America. This factor is putting huge pressure on the international prices.Therefore,market experts are expecting a decrease in the international oil prices in next week. Short run investors can take advantage of the fluctuating oil prices. So,in this situation investors can  earn short term returns through using day trading strategies.

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About Emaad Qureshi