Pakistan stock market saw a negative week as Karachi stock exchange-100 index fell by 549 points during the week. The issues of Pakistani brokerage houses,Panama papers proceedings and fluctuations in the international oil market were three major factors affecting the investor’s sentiment at the Pakistan stock market.
Pakistan stock market started the week with positive momentum but failed to continue that momentum in the remaining week.Market climbed by 40 points on first day of the week. The news about Chinese anti dumping duty helped it to reach the positive zone.Karachi stock exchange-100 index passed through some hiccups during the week.The negative news about terrorist attacks disturbed the market sentiment during the whole week.Karachi stock exchange-100 index lost 588 points during last four days of trading week.
Karachi stock exchange-100 index started the week at 49925 points and ended the week at 49375 points. The weekly share trading volume showed an decreased of 14.5 % as compared to the last week. The weekly share trading volume was approximately 1770 million shares as compared to the last week’s volume of 2070 million shares.
Foreign investors are gaining some confidence in the Pakistan stock market.Foreign portfolio investment showed an inflow of 4.2 $ million during the week.
Market analysts are predicting a mixed trend in the Pakistan stock market for this week. The Panama case proceedings,and actions by SECP will affect investing behaviors of investors in the local stock market.
Panama leaks court case proceedings will start from 21st February 2017. PTI has announced to present more proofs in the court. Government is trying to drag the case and this creating uncertainty in the market.
The investors sentiment was greatly affected when they heard the news of fraudulent Islamabad based broker named A W J Securities (Pvt) Ltd .This broker used to issue fake share certificates for last few years. PSX is carrying out serious investigations against this broker on charges of looting 1200 investors.
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.by