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Karachi stock exchange -100 index fell by 408 points amid profit taking

Stock market saw a negative week as Karachi stock exchange -100 index lost 408 points during the week.The profit taking by the foreign and domestic investors was the prime reason for the negative performance of the stock market.Foreign investors were again net sellers this week.They sold net equity of about $ 18.38 million during the week.This is 1606 % increase in the foreign outflow as compared to the last week.This also shows the dwindling confidence of the foreign investors on the our stock market.

Karachi stock exchange 100 index started the week at 39907 points and ended the week at 39499 points.There was 13 % decrease in the  weekly share trading volume.The weekly share trading of current week was 1150 million shares as  compared to the last week’s volume of  1325.5 million shares.Both Foreign  and domestic investors took part in heavy profit taking in the stock market.

stock market


Source : Express Tribune 

Stock market started the week on a positive note as Karachi stock exchange 100 index rose by 122 points on the first day of the week.The index failed to continue its positive ride as investors were busy in profit taking throughout the week.

Following are the major gainer and loser companies of the week.

Top 5 gainers of the week

Top 5 losers of the week

Source : KHI Stocks

Best and worst performers of the week

The power ,energy and telecom sectors were the best performing sectors throughout the week.If we talk about the power sector,K-electric and Arshad energy were the talk of the town. Investors showed special interest in these shares.  It is expected that Chinese investors may buy K-electric. The share of the K-electric rose by 0.11 % and share of Arshad energy rose by 32.21 % during the week.

PTCL was the best performing stock of the telecom industry.The share prices of the PTCL showed considerable improvement in last one week.The share prices of PTCL gave overall weekly returns of 9.52 %.

PPL,POL and OGDCL were three best performing stocks of the Oil and gas sector.The stocks of PPL,POL and OGDCL gave weekly returns of 2.26 %,3.61 % and 1.71 % respectively. These three shares added 91 points to the Karachi stock exchange 100 index during the week.

Banking and finance sector was worst hit by the fall in the stock market.Its big players like MCB ,HBL and UBL didn’t perform well during the week.The shares prices of MCB ,HBL and UBL fell by 3.15 %,3.27 % and 3.30 %.These three shares added 315 points in the Karachi stock exchange-100 index during the week.

Future Outlook

Market analysts are quite upbeat about the upcoming performance of the local stock market.The upcoming corporate earning reports,low interest rates and rising oil prices can help market to rise in upcoming days.The unstable political environment of Pakistan can negatively affect the stock market. Political parties like PAT and PTI have announced their agenda to put pressure on the government through political movements. Panama leaks is the biggest issue haunting the government for last five months. PML-N government and allies have to solve this matter politically as soon as possible.

Cement sector is best for the long term investors. This sector has the potential for growth as big construction related projects have started in the country. Other than that cement sector is expecting big orders from various countries.

About Emaad Qureshi