Pakistan stock market saw a negative week as Karachi stock exchange-100 index lost 1588 points during the week.The political uncertainty ,value investing and declining oil prices were three most factors affecting the stock market traders at the Pakistan stock market.
The PML-N governmant failed to control the political temperature after the ouster of the Nawaz Sharif.Political noise is still affecting the Pakistan stock market as PML-N government is still looking for the future direction . Foreign investors are still not comfortable with the Pakistan stock market.Therefore,they sold net equities of $ 31 million during the week.
The Karachi stock exchange -100 index started the week at the 45920 points and ended the week at 44322 points .The weekly share trading volume showed an decrease of more than 46 % .The Weekly share trading volume was 990 million shares this week as compared to the volume of 1745 million shares in the last week.
Market analysts are expecting a mixed market trend as political uncertainty is increasing in the country .Ex-Prime Minister Nawaz Sharif has started attacking state institutions such as Supreme court.He also trying to pressurize and influence NAB courts by using PML-N government resources. Some PML-N leaders are also supporting him in this political strategy.The tussle between PML-N and state institutions is creating political uncertainty. This is a very good time for the value and long run investors to invest in the Pakistan stock market.
Market analysts are expecting a surge in the oil prices due issues in the supply.OPEC is also making efforts to control the supply in the international oil market. It is expected that oil prices will fall below $ 50/barrel this week. The swift return of U.S. shale, improvement in the Nigeria & Libya oil production will define the prices of the oil market. Short run investors can use day trading strategies to earn very good short run returns from their investments.
Market experts are also expecting that Rupee may depreciate in the current week.The depreciation in the rupee will force foreign investors to offload their investments in the stock market.