Pakistan stock market saw a negative week as Karachi stock exchange-100 index lost 1465 points during the week.The profit taking by investors,fluctuations in the oil prices and political uncertainty were three important factors affecting the investing behaviors of stock market traders at the Pakistan stock market.The Karachi stock exchange -100 index started the week at the 41311 points and ended the week at 39846 points .The Karachi stock exchange-100 index has fallen below 40000 for the first time in last few years.The average daily trading volume showed an increase of 4.3 % during the week.
The interest of the Foreign investors has increased in the domestic stock market . Foreign investors bought net equities of $ 38.8 million during the week.
The analysts at Money and Matters are expecting a mixed sentiment at the Pakistan stock market.The political certainty ,economic instability, and uncertainty at international oil market are three most important factors affecting the market.
The accountability court has summoned Hussain nawaz, Hasan Nawaz and Maryam Nawaz on 19 October,2017 for trail and indictment.Court has also asked Ex-Prime Minister to appear.The sons and daughter of Ex Prime Minister avoided the indictment last week but this week it is certain that they will be indicted. The PML-N government is completely supporting the Ex-prime minister and his family.The tussle between SC and government is really creating political uncertainty.
The Pakistani economy is passing through a very difficult phase right now.World bank has warned about external threats faced by Pakistan economy. The July-September 2017 trade deficit has showed an increase of 22 % and remittances have also decreased by 20 %.These two factors have badly affected the Rupee and its value has showed a decline of 1.5 percent during the week.
An extra-violent hurricane season, Oil supply issues, threat of new sanctions against Iran and OPEC oil cut policy may help international oil prices to increase in next few days. The short run stock investors can earn good returns by using day trading strategies.
The Karachi stock exchange-100 index is facing strong resistance near 40000 points.The ongoing political uncertainty and lack of strong triggers will keep the index in check during the current week.The stocks of high earning sectors such as Cement are available at discount.Hence,this is an ideal time for the value investors to improve prospects of their long run returns.