Pakistan stock market saw a positive week as Karachi stock exchange-100 index gained 971 points during the week.The political uncertainty , fall in the oil prices and heavy profit taking were three major factors affecting the Pakistan stock market.
The Karachi stock exchange-100 index showed some recovery after the deadly last week. The Pakistan stock market showed some recovery after big investors started investing in strong oversold stocks. Foreign investors showed considerable interest in the market as they were net buyers during the week. Foreign investors bought net equities of about $14 million during the week.
Karachi stock exchange-100 index started the week at 52636 points and ended the week at 48555 points . The weekly share trading volume showed a decrease as compared to the last week’s share trading volume .The share trading volume was 1185 million per day during the week.
Pakistan stock market started the week on a positive note as investors showed special interest in the large companies stocks.Karachi stock exchange-100 index gained 1565 points during first trading day of the week.
The index lost 677.77 during the last four trading days of the weeks.The falling oil prices and profit taking by investors were two main reasons for negative sentiment in last four days.
Best performers of the week
Auto sector was the major performing sector of the week.Auto sector rose by 6 % during the week.The individual big player stocks such as Lucky cement,Bank Al habib ,Mari Petroleum,Engro corporation and United Bank Limited also played an important in the recovery of the Pakistan stock market.Lucky cement,Bank Al habib ,Mari Petroleum,Engro corporation and United Bank Limited collectively added 345 points to the Karachi stock exchange-100 index
Market analysts are expecting a mixed sentiment in the next week as investors will remain cautious after seeing a deadly last week at the Pakistan stock market. Moreover,political uncertainty and international oil prices fluctuations can affect the investing behaviors at the Pakistan stock market.
JIT is currently conducting an inquiry from the family of the prime minister of Pakistan.The Panama case investigation has entered into its last phase. JIT has called Prime Minister of Pakistan on Thursday. Prime minister of Pakistan has to prove his innocence in front of the JIT to get clean chit from Supreme court.
On the other hand, PML-N leadership is busy giving controversial statements against the members of the JIT .This situation is creating political uncertainty as opposition is ready to come on street in case of any attack on Supreme court by the government.
Disqualification of the PM will create further uncertainty in the country and that is very good time for value investors to invest. So,value investors can surely invest in the undervalued stocks to improve their long run returns.
According to the market analysts geopolitical situation may affect the international oil market in the upcoming week. However,it is also true that international oil prices may not rise much as supply is greater than the demand at the the moment.
So ,investors can take advantage of the volatility in the oil market. They can maximize their gains by investing in the oil and gas based stocks through using day trading strategies.