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Karachi stock exchange-100 index lost 729 points

 Pakistan stock market saw a positive week as Karachi stock exchange-100 index lost 729 points during the last week.The market was badly affected by the IMF ‘s negative report about the macroeconomic condition of the Pakistan.Foreign and domestic investors remained cautious whole week due to this news.The Karachi stock exchange-100 index index started the week at the 43740 points and ended the week at  43011 points.

Currently, foreign investors are really worried about the macroeconomic conditions of the country as economic woes of the country are increasing. Foreign investors were involved in heavy selling at the Pakistan stock market. Foreign investors sold net equities of $ 3.9 million during the week.

Future Outlook

The analysts at Money and Matters are expecting mixed sentiments at the Pakistan stock market .The Tussle between Supreme court and PML-N will keep affecting the market for next whole week.The uncertainty in the international oil market and macroeocnomic instability will keep haunting the market in upcoming days.

The NAB has started playing an active role in taking up corruption related cases.It has started putting pressure on corrupt elements present in different political parties.It can really create strong conflict between government party and NAB.Supreme court has given two month extension for investigating Sharif family corruption cases. Sharif family is using very harsh language against Supreme court and NAB.This is causing strong conflict between SC and PML-N.The political uncertainty is making investors vary about the future of the stock market.

The number of oil drilling rigs is falling in the United States of America.The number of rigs fell by 4 to 796 last week.The current oil production data showed that U.S. oil production has been increased by shale extraction.The US shale production touched the all-time high figure of 10.37 million bpd and this is above the oil production figure of  Saudi Arabia. The oil marfket analysts have warned that boom in the US shale production can really disrupt the efforts made by the OPEC to control the world oil supply.The increase in the oil prices can really help the Pakistan stock market.

The current macroeconomic conditions of the country are not so encouarging but overall Pkaistan has a very economic future.Oil based stocks are still very good for the short run inevstors.They can use day trading strategies during the fluctuating oil market.They can make use of the upside down stock movement to earn some short run stock returns.The Karachi stock exchange -100-index is expected to remain range bound till the successful conclusion of the general eelctions 2018.It is expected that Karachi stock exchange-100 index will keep moving between 42000 points to 47000 points during next 5-6 months.The next 5-6 months are very important for long-term investors who can use this opportunity to build an investment portfolio.Investors must also keep an eye on the company results for devising appropriate stock picking strategies.

DISCLAIMER: All the information is provided for information purpose only. The information has been obtained from the sources believed to be reliable. Analysis provided is opinion only. This is not a BUY CALL. You are solely responsible for all types of investment and trading decisions made by you.

About Emaad Qureshi