Pakistan stock market is passing through a very critical time as Karachi stock exchange -100-index lost 1005 points during the week. The fluid political and economic situation is irking the investors at Pakistan stock market.
Domestic investors took a backseat during the week. However, foreign investors showed some interest in the market as they bought net equities of $ 0.6 million during the week.
Karachi stock exchange-100 index started the week at 45542 points and ended the week at 44537 points.
The experts at Money and Matters are expecting a mixed week at the Pakistan stock market. The macroeoncomic issues,political uncertainty and fluctuations in the international oil prices can affect the Pakistan stock market in upcoming days.
The hate speeches by the PML-N leaders against the national institutions are creating political uncertainty. The corruption cases against the Sharif family have entered into their last phase.It is expected that Ex-PM Nawaz sharif will be convicted in NAB courts. Any decision against the Sharif family can create more uncertainty in the market.
The market has not reacted positively to the budgetary recommendations of the ruling party. Since macroeconomic conditions are worrying the domestic and foreign investors. Next Pakistani government has to face an uphill task to mend the economy. Since it will be very difficult for the next government to stabilize the economy. Investors are also expecting a further devaluation of the Pakistani rupee after general elections.
The US-Iran tension is creating uncertainty in the international oil market. Analysts are expecting that oil prices may cross $ 80 /barrel in case Trump withdraws from US-Iran nuclear deal. However, it is also a very good chance for the short-term traders to earn some quick returns by investing in the oil-based stocks.
Long-term traders must hold their investments in blue-chip stocks in growing sectors. It is expected that Karachi stock exchange-100 index may cross 50000 points in the post0eection period. So it is the best time to create long-term investment portfolio.