Pakistan stock market saw a negative week as Karachi stock exchange-100 index lost 1343 points during the week.The political uncertainty , rupee depreciation and falling oil prices were three major factors affecting the market sentiment at the Pakistan stock market.
The foreign investors and local investors took a back seat as political temperature was very high throughout the week. Foreign investors were net sellers at the local stock market.They sold net equities of $ 5.8 million during the week.
The Karachi stock exchange -100 index started the week at the 46565 points and ended the week at 45222 points .The weekly share trading volume showed a decline of 22 % .The Weekly share trading volume was 830 million shares in the this week.
The Pakistan stock market started the week at a negative note as Karachi stock exchange-100 index fell by 1899 points on the first day of the week. The prime reason for this fall was the Panama case investigation. JIT is busy in carrying out investigation of the Sharif family .The market sentiment in the next four days was mixed as investors focused their investing efforts towards selecting value stocks.Pakistan stock market showed some recovery in last four trading days as investors felt that it was good opportunity for them to invest in value stocks.The rupee depreciation played an important role in preventing stock market to make an upward march.So,Karachi stock exchange-100 index gained just 556 points in last four days.
Market analysts are expecting a mixed market trend in the current week as investors will take a back seat due to political uncertainty in the country. Political uncertainty in the local politics is causing uncertain situation in the stock market and investors are really worried about the near future of the Pakistan stock market.On the other hand ,PML-N ministers are holding press conferences on daily basis and trying hard to put pressure on the Supreme court. JIT will submit its final report tomorrow to the Supreme court of Pakistan.Supreme court will take at least 2-3 weeks to make final decision on the Panama case.So,there will be an uncertain and volatile situation till the final decision of the Panama case comes.
This is an ideal situation for the value investors to step in and take advantage of the situation. Experienced and matured investors are planning to invest in the value stocks as it happened in the last week.They can improve their long run returns prospects by buying and selling them undervalued stocks of financially strong companies.
The uncertainty in the oil market can also play its part in influencing the investing behaviors of the stock traders in upcoming days.OPEC is making every effort to prevent oil prices from falling but its efforts are partially successful.The growth in US oil production is directly affecting the oil market demand and supply position.The growth in US production was mainly caused by greater production in North Dakota and Texas.
The volatility in the oil prices is very good for the short run investors.They can use day trading strategies to maximize their investment returns. Moreover,they have to keep an eye on all types of news affecting the international oil market.