Pakistan stock market saw a negative week as Karachi stock exchange-100 index lost 2668 points during the week.The political uncertainty , profit taking by large investors and fall in the oil prices and were three major factors affecting the Pakistan stock market.
The Karachi stock exchange-100 index continued its downward movement during the whole week.The Karachi stock exchange-100 index lost 5.4 % of its value and it was one of the terrible weeks of the Karachi stock exchange -100 index history.Stock market showed some recovery after big investors started investing on the second day of the trading but it was very short lived. Foreign investors took a backseat and were mostly busy in selling their stocks.Foreign investors sold net equity of $ 9.5 million during the week.
Karachi stock exchange-100 index started the week at 49526 points and ended the week at 46859 points . The weekly share trading volume showed an increase as compared to the last week’s share trading volume .The share trading volume was 1275 million per day as compared to the trading volume of 1185 million per day during the last week.
Pakistan stock market started the week on a negative note as investors showed special interest in the large companies stocks.Karachi stock exchange-100 index fell by 1855 points during first trading day of the week.The main reason for this fall was summon send by the JIT to the Prime Minister Nawaz Sharif.
The index showed some recovery on the second day of the week but it was short lived.The Karachi stock exchange-100 index nosedived by 1211 during the last three trading days of the weeks.The falling oil prices ,political uncertainty and profit taking by institutional investors were three main reasons for negative sentiment in last three days.
Market analysts are expecting a negative sentiment in the next week as investors will remain cautious due to many factors. Political uncertainty and international oil prices fluctuations are two most important factors expected to affect the investing behaviors in the upcoming week.
JIT is currently carrying out a detailed inquiry of the Sharif family .The JIT will submit its third inquiry report to the supreme court in next few days. Panama case investigation has entered into its last phase. JIT has also summoned son in law of the Prime Minister. Moreover,ex interior minister Rehman malik is also summoned by the JIT. These political events are creating uncertainty and it will also affect the investing environment at the Pakistan stock market.So,value investors can surely invest in the undervalued stocks to improve their long run returns.
The middle east geopolitical situation is also very volatile and unpredictable.This will certainly affect the international oil prices in the upcoming week. According to the market analysts geopolitical situation may affect the international oil market in the upcoming week.
The OPEC is making efforts to control the prices but US oil drilling activity is making OPEC job very difficult. So,it is expected that international oil prices may not rise much as supply is greater than the demand at the the moment.
So ,short run investors can take advantage of the volatility in the oil market. They can improve their returns by investing in the oil and gas based stocks through using day trading strategies.