Karachi stock exchange-100 index has seen a positive week as it gained 1667 points during the week.The increase in the oil prices and institutional buying helped the upward movement of the Karachi stock exchange-100 index.
The increase in the cement prices also helped market gain some momentum.The foreign investors showed considerable interest in the Pakistan stock market.They bought net equities of $ 0.2 million during the week.
Karachi stock exchange-100 index started the week at 43363 points and ended the week at 45030 points.
The analysts at Money and Matters are expecting a mixed week at the Pakistan stock market.The political uncertainty and fluctuations in the international oil market will keep on affecting the Pakistan stock market.
The swelling external account deficit is creating lots of problems for the PML-N government and overall economy. This news is also irking out foreign investors who are already worried about the weakening rupee.
The international oil market is passing through a critical time.According to the latest news reports, USA may withdraw from the Iran-US nuclear deal.The expected American withdrawal can badly affect the oil supply in the international market. However, it will improve the stock prices of the oil and gas sector.Therefore, it offers a very good opportunity for the short run investors to earn quick bucks through trading in the oil-based stocks.
The further devaluation of rupee will keep on affecting the Pakistan stock market in upcoming days.Furthermore, it will prevent foreign investors from making more investments in the Pakistan stock market.
The devaluation of Pakistan Rupee will increase the external liabilities of the Pakistan economy. The next 4-6 months are very important for the value investors to build a profitable portfolio. They have to keep an eye on the political events and earnings of blue-chip stocks.This will help them to formulate the perfect stock picking strategy.