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Karachi stock exchange-100 index lost 255 points during the week

Pakistan stock market saw a negative week as  Karachi stock exchange-100 index  lost 255 points during the week. The rising oil prices ,Geo-political instability,and panama case verdict played most important role in affecting the Pakistan stock market proceedings during the week. Foreign investors are showed some interested in the local bourses. Hence, Foreign investors  bought net equities of worth $ 9.25 million during the week.

Pakistan stock market started the week on a negative note as political uncertainty and falling oil prices kept investors guessing.Moreover,these two factors were major causes of the negative market sentiment throughout the week.Karachi stock exchange-100 index lost 800 points during the first four days of the trading week.The Pakistan stock market showed some recovery as Karachi stock exchange-100 index rose by 532 points on back of  improvement in the international oil prices in the international market.

Karachi stock exchange-100 index started the week at 48155 points and ended the week at  48889 points. The weekly share trading volume showed a decreased of 37 % as compared to the last week. The weekly share trading volume was  approximately  780 million shares as compared to the last week’s volume of 1240 million shares.


Best and Worst Performers of the Week

Cement sector was the best performing sector during the week.Lucky Cement,Kohat Cement and Javedan Corporation were best performing shares in the sector. Oil and Gas exploration sector also was the best performer of the week. It grew by 2.5 during the week.Mari Petroleum,OGDC and Pak Petroleum  were three best performing shares of the sector.They were helped by the fluctuating international oil prices during the week.

Banking sector was the worst performing sector of the week as it fell by 2.5 % during the week.

Future Outlook

Market analysts are expecting a mixed sentiments in the upcoming week as political uncertainty and geopolitical instability will keep investors range bound during the next week.The delay in the Panama case verdict is creating temporary uneasiness and uncertainty in the Pakistan stock market.Moreover,it is a very good time to invest in the fundamentally strong shares.Value investors can improve their gains through investing in the undervalued fundamentally strong shares.

Geopolitical tensions in the Middle East have affected the international oil prices. Improvement in the  oil prices have  helped oil based companies to improve their earnings and that really helped shareholders to improve their gains. Future US air strikes on Syria can create oil supply crisis and that will increase the international oil prices.So,investors can earn short term returns through using day trading strategies.

Cement sector is offering a very good investing opportunity for the long run investors. Moreover,this sector is showing a very good growth even in the current market situation.Cement sector rose by 0.4 % on the back of encouraging growth in the cement dispatches of the month of March 2017.The cement dispatches grew by the 11 % post in the month of March.Investors can earn long term returns through investing for 2-3 years time horizon.


About Emaad Qureshi