Pakistan stock market saw a mixed week as Karachi stock exchange-100 index lost 172 points during the week. The good corporate results and profit taking by the investors were two most important reasons impacting the investor sentiments at the stock market.
Karachi stock exchange 100-index started the week at a negative note mainly due to heavy profit taking by the investors at the Pakistan stock market. Karachi stock exchange 100-index lost 539 points in first three days of the trading week. The stock market showed a brief recovery on Thursday after the good corporate results. The index rose by 621 points on Thursday. After this brief recovery, Karachi stock exchange 100-index lost about 254 points on the last day of the trading week.
Foreign and domestic investors took a backseat during the week. The foreign portfolio investment saw a huge fall during the week. The foreign investors offloaded $ 8.4 million equities during the week.
Karachi stock exchange 100-index started the week at 41463 points and ended the week at 41291 points. The weekly share trading volume showed a 16.9 % increase as compared to the last week.
Best and Worst performers
Banking and Oil/Gas sectors were the best performing sectors during the week. Its most important stocks like UBL and HBL sectors added 54.1 points in the Karachi stock exchange 100-index during the week.
Cement sector was the worst performing sector during the week. Its most important stocks like Lucky Cement and DG Cement sector added 126.2 negative points in the Karachi stock exchange 100-index during the week.
Sectors to Watch
Auto and fertilizer sectors are very good investment option in the long run. Chinese investors have showed a keen interest in Pakistan auto sector. They are planning to invest in the auto sector in next few years.
Market analysts are expecting a volatile market sentiments in the next week. Upcoming corporate results , international oil prices and local political environment will influence the trading behaviors in upcoming days. Big market players like Lucky cement, Bank Alfalah, Muslim commercial bank and DG Khan Cement are expecting their results in next week. Good corporate results will provide new triggers to the stock market.
Cement sector is expected to make a comeback after negative performance in the current week. Cement sector was hit by the rise in the coal and fuel prices. This increased the cost of production of the cement companies. Cement sector is still a very good investment option in the long run.
Oil sector is also expected to grow in next week as main OPEC countries are planning to reduce their crude oil production in upcoming months. Experts are also expecting a fluctuation Stock investors can maximize their short term gains at stock market by investing in oil sector.
PTI has decided to stage a massive protest in federal capital city Islamabad on Nov 2, 2016.It is also planning to lock down the city. Supreme Court is also hearing petitions about the disqualification of the Prime Minister. Any decision against the ruling party or Prime Minister can create uncertainty in the local stock market.