Pakistan stock market saw a positive week as Karachi stock exchange -100 index rose by 394 points during the week.The market showed some recovery in last few days of the trading week as global markets recovered nicely from the Post-Brexit scenario.The oil and gas sector also played an important role in market recovery as international oil prices touched $ 50 mark during the week.Foreign investors were again net sellers this week.They sold net equity of $ 3.6 million during the week.This is 84.5 % decrease as compared to the last week.
Pakistan stock market started the week at a negative note as Karachi stock exchange-100 index lost 400 points on the first day of the week.Because Brexit referendum results caused havoc in the international and national stock markets.The market recovered nicely in the remaining trading days of the week.Karachi stock exchange-100 index rose by 794 points during the last three days of the week.the rise in the international oil prices helped the company stocks trading at the Pakistan stock marketto stage a comeback in last three days of the week.
The Karachi stock exchange-100 index started the week at 37390 points and ended the week at 37784 points.The weekly trading volume was 572.174 million shares as compared to the last week’s share trading volume of 778.40 million shares.This is 26.49 % decrease in the share trading volume ,if we compare volumes of both weeks.The shortened week due to Eid holidays also caused trading volumes to drop with such a high ratio.
Best and Worst Performers of the week
Cement,power and financial sectors were the best performers of the week.They played an important role in the recovery of the Karachi stock exchange-100 index in last three days of the week. Hubco Power,United Bank Limited, Lucky Cement and Dawood Hercules were the top performing companies in these three sectors.The share prices of Hubco Power,United Bank Limited, Lucky Cement and Dawood Hercules rose by 2.62 % , 3.42 %,3.70 % and 5.61 % during the week.These 4 shares contributed 204 points to the Karachi stock exchange-100 index.
Heavyweight individual stocks like fauji meat were the worst performers of the week. Fauji Meat contributed 254 negative points to the index.
Market analysts are expecting a mixed trading sentiment after the completion of the Eid holidays.The fluctuations in the international oil market and domestic political environment will dictate trading behaviors in the upcoming week.Oil market analysts are expecting a increase in the international market in the Post-Brexit scenario.This trend will certainly help the Pakistan stock market to grow in the positive manner.
‘Domestic political scenario is creating worries for the domestic as well as foreign investors. PML-N government failed to resolve its issues with the opposition parties. Pakistan tehreek-e-Insaf has threatened to launch a street protest on the issue of panama leaks after Eid. This protest will create further instability in the domestic political environment. So government must play an active role in the solution of the Panama issue.
Blue chip companies are the best investment option for the investors. Investors can easily increase their gains by investing in these companies.As current market situation is very dicey and complex.