Pakistan stock market saw a negative week as Karachi stock exchange-100 index fell by 238 points during the last week.The political uncertainty, oil price fluctuations, and economic worries were three important factors affecting the sentiment of stock market investors at the Pakistan stock market.The Karachi stock exchange -100-index started the week at the 40248 points and ended the week at 40,010 points.
The foreign investors are quite confused about the domestic political and economic scenario. Therefore, foreign investors sold net equities of $ 40 million during the week.
The market analysts at Money and Matters are expecting mixed sentiments at the Pakistan stock market in upcoming days.The dharna, protests and the ongoing corruption cases against PML-N leaders are creating lots of uncertainty in the political climate.The finance minister Ishaq dar is still out of the country and he is not ready to come back.The rumors of technocrat setup and expected impeachment of the prime minister are making the situation even worse.
The international oil market is passing through a very critical time nowadays.The Organization of Petroleum Exporting Countries (OPEC) and nine other important countries like Russia have decided to extend the ending deadline of the current oil output cuts agreement to the end of 2018. The previous deadline was going to end in March 2018.This new deadline will provide the cushion to the oil prices in the international market.The OPEC countries and 9 other important countries like Russia have decided to cut the oil to 1.8 million barrels a day (bpd) . However, US oil output is also rising and that is a major threat to the international oil prices.
Investors can use day trading strategies to book gains in the oil-based stocks.This is also very good time for the value investors to make an entry in the stock market as blue-chip stocks of good companies are available at low prices.