Pakistan stock market saw a negative week as Karachi stock exchange-100 index lost 1418 points during the week. The political uncertainty and falling prices mainly influenced the investing behaviors of the investors.The selling in the retail sector also played an important role in the negative performance of the stock market.
Karachi stock exchange 100-index started the week at a negative note as political temperature kept on rising in the country. Karachi stock exchange 100-index lost 439 points on first trading day of the week. This happened as local and international investors were confused about the future of the present government.The stock market continued its downward journey and Karachi stock exchange 100-index lost 977 points in next four trading days of the week.
Source : Express Tribune
Karachi stock exchange 100-index started the week at 41291 points and ended the week at 39872 points. The weekly share trading volume showed a 27.7 % decrease as compared to the last week.The weekly share trading volume was 1705 million shares during the week.
Foreign investors took considerable interest in the Pakistan stock market. The foreign portfolio investment saw a rise during the week. The foreign portfolio investment saw a inflow of $ 14.1 million during the week.
Best and Worst Performing Sectors
Cement sector was the best performing sector during the week.This sector saw a buying of 5.5 million during the whole week.Banking and exploration sector was worst affectee of the negative performance of the Pakistan stock market.This sector added 533 negative points to the Karachi stock exchange -100 index.
Market analysts are expecting a negative trend in the upcoming week. Uncertainty in the Pakistan political scene and international oil market are two most important reasons for these negative expectations. Pakistan politics is passing through a critical moment of its history. There is a complete deadlock between opposition and government parties. PML-N government has failed to address panama leaks crisis.The increasing military-government tension is also increasing uncertainty in the Pakistanstock market.
International oil market is also very unstable at the moment. The planned deal between the OPEC countries to reduce production is yet to materialize. Experts are skeptic about the future implementation of this deal .Important OPEC countries like are not ready to reduce their production. The important meeting between the OPEC officials in Vienna failed to workout any feasible way to reduce the production in the immediate future.
Investors should adopt buy and hold investing strategy.This is the ideal time for value investors to invest in blue chip stocks.Long term investors can adopt this strategy to improve their future gains.Cement sector can be a very good option for the investors to improve their future gains.