Pakistan stock market saw a negative week as Karachi stock exchange-100 index fell by 249 points during the week.The foreign selling, falling oil prices and interest rate hike were three important factors affecting the Pakistan stock market. The Karachi stock exchange -100-index started the week at the 44550 points and ended the week at 44301 points.
The foreign investors are still worried about the weakening rupee in the international currency market. Foreign investors were involved in heavy selling in the last trading day of the Pakistan stock market.Foreign investors sold net equities of $ 12.6 million during the week.
The market analysts at Money and Matters are expecting mixed sentiments at the Pakistan stock market in upcoming days.The factors like political uncertainty, pressure on international oil prices and company results will continue affecting the domestic stock market.The stocks of high earning sectors such as Cement are available at very cheap rates.It is expected that this trend will continue in this week.
The main political parties are planning to hold series of Jalsas all over the country.The top leadership of the ruling party is facing contempt of court cases in the court.The Sharif family has declared an all-out war against the Superior judiciary. The PML-N-Supreme court rivalry is creating political uncertainty in the country.
The international oil prices fell from $ 69.46 per barrel to $ 69.05 per barrel in last one week.The oil prices are falling due to numerous reaosns.U.S. drillers have added six more rigs this week and now the number of drilling rigs has increased to 765.The increase in the rigs will improve the U.S. crude production.This trend will put more pressure on the oil prices in upcoming days.
The Karachi stock exchange-100 index gained 9.46 % during the current year. Market analysts are not expecting any large rally till the election 2018. The time period until the election 2018 is a very good time for the value investors looking to build their long-term investment portfolios.
Technical analysis and Fundamental analysis are two techniques used to analyze stock markets and share prices.The technical analysis is not applicable in the current scenario of Pakistan stock market.Investors must stick with fundamental analysis and keep an eye on fundamentally strong stocks.Cement, steel and banking sectors will greatly benefit from the CPEC related infrastructural projects.Therefore, it is highly recommended to invest in stocks of these sectors to build a long-term investment portfolio.