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Karachi stock exchange-100 index lost 1244 points

Pakistan stock market saw a negative week as Karachi stock exchange-100 index  lost 1244 points during the week.The political uncertainty and  declining oil prices were two most factors affecting the stock market traders at the Pakistan stock market.

The  political uncertainty has been increased in last one week.Political noise is still affecting the investment atmosphere as PML-N government has adopted the policy of confrontation with the state institutions .  Foreign investors  are still not comfortable with the Pakistan stock market.Therefore,they sold net equities of  $ 2 million during the week.

The Karachi stock exchange -100 index started the week at the 44322 points and ended the week at 43078 points .The average daily share trading volume showed a decrease of more than 4.9 % .The daily share trading volume was  184 million shares this week .

Future Outlook

Market analysts are expecting a negative market trend  as  political uncertainty has really increased after the 28th July verdict of the Supreme court.The Ex-Prime Minister Nawaz Sharif and his ruling party has continued its policy of threatening the Supreme court .He also  trying to pressurize and influence NAB courts by using PML-N government resources. The ongoing political uncertainty  is really affecting the concentration and focus of the investors as there is confusion about the future of the government policies. Therefore,this is a very good time for the long term investors to invest in the fundamentally strong stocks.

Market analysts are expecting a depression in the oil prices due to expected improvement in the US shale production.OPEC  is making efforts to control the supply in the international oil market but in vain. US shale companies are using a very smart counter strategy to counter the OPEC price control strategies.They are pursuing a low cost strategies as they can break even at $ 40/barrel market prices.So,it is expected that oil prices will fall below $ 50/barrel this week.So,this is an ideal time for the day traders as they can improve their short run returns by using day trading strategies.

 

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About Emaad Qureshi