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Karachi stock exchange-100 index fell by 367 points during the week

Pakistan stock market saw a negative week as  Karachi stock exchange-100 index  fell  by 367 points during the week. The Panama papers proceedings ,fluctuations in the  international oil prices,worsening security situation and issues of Pakistani brokerage houses played  an important role in affecting the investor behavior at the  Pakistan stock market.

Foreign investors and domestic investors are still confused about the immediate future of the overall market.Domestic investors remained range bound and invested in mid cap shares.Foreign portfolio investors sold net  equities of worth $4.84 million during the week.

Pakistan stock market started the week on a negative note as investor sentiment was very low in the market. Karachi stock exchange-100 index lost by 446 points on first day of the week. The market continued its see-saw journey in next trading days.The news of terrorist attack in Lahore and panama case hearing news kept investors range bound.So,Karachi stock exchange-100 index  gained just 78 points during last four days of trading week.

Karachi stock exchange-100 index started the week at 49375 points and ended the week at  49008 points. The weekly share trading volume showed an decreased of  9 % as compared to the last week. The weekly share trading volume was  approximately 1610 million shares as compared to the last week’s volume of 1770 million shares.

Best  Performing Sectors

Cement sector and fertilizer sectors were two best performers of the week.Cement sector stocks like DG khan cement and Best way cement showed a consistent growth during the week. DG Khan cement  and Best way cement shares rose by 0.95 % and 9 % respectively.

Future Outlook

Market analysts are expecting a mixed trend at the Pakistan stock market for next week. The Panama case decision and  actions by SECP will affect investing behaviors of investors in the local stock market.So,investors are inclined to play safe and secure in the current business and political environment of the country.

Supreme court has reserved the decision made on the Panama case proceedings.It is expected that court will announce its detailed decision in the next week.Most of the legal experts are expecting a balanced decision from the Supreme court.Its decision can create temporary uncertainty in the market.The situation of uncertainty is still prevailing in the country over the future of Prime Minister.

The stock market is still jolting from the default of two Pakistani brokers and actions by the SECP against some brokerage houses.Investors confidence got a pounding after these incidents and they are still not clear about the resolution of issues related to aforementioned brokers. PSX and SECP must act swiftly to help investors regain their confidence.This issue will keep the investors range bond during the next week.

Stock market investors should adopt buy and hold strategy for the  week.They can maximize their returns on their investments by buying stocks at dip.They should wait for the dust to settle on the Panama cases and brokerage house investigations. Buy and hold strategy is also very fruitful for good long term investing. Investors can improve their return by investing in good performing sectors like Power and Cement.

About Emaad Qureshi