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Karachi stock exchange-100 index lost 312 points during the week amid political uncertainity

Pakistan stock market saw a negative week as  Karachi stock exchange-100 index  lost 312 points during the week. The fluctuating oil prices ,Geo-political instability,and panama case uncertainty played most important role in affecting the investing behaviors of the stock market traders during the week. Foreign investors and small local investors took a back seat as they were confused about the future of the market . Hence, Foreign investors  sold net equities of worth $ 2.8 million during the week.

Pakistan stock market started the week on a positive note as recovery of oil prices helped Karachi stock exchange-100 index to rise by 567 points during first three days of the week.Actually,geo political environment in the Middle east caused oil prices to rise in the international market.Karachi stock exchange-100 index lost 879 points during the last 2 days  of the trading week.The oil prices decline and political uncertainty at domestic political arena caused  Karachi stock exchange-100 index shed points in last two days of the trading week.

Karachi stock exchange-100 index started the week at 48889 points and ended the week at  47577 points. The weekly share trading volume showed a decreased of 9.7  % as compared to the last week. The weekly share trading volume was  approximately  855 million shares as compared to the last week’s volume of 780 million shares.

Best  Performers of the Week

Oil and gas exploration sector was the best performing sector during the week.Pakistan oil fields and Pakistan petroleum  were best performing shares in the sector. The growth of  oil shares was helped by the fluctuations of international oil prices.

Future Outlook

Market analysts are expecting a mixed trend in the upcoming week.Geo-political instability,fluctuating oil prices and uncertainty in local political environment will affect the investing behaviors in the next week. Investors have to keep a close on these three factors while investing in the Pakistan stock market. There is a political uncertainty. 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 and it helped investors to earn some returns from their investments. Russia has announced to decrease its oil supply in the international market.This will improve the demand and supply situation in the international market.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.

Auto sector is offering a very good investing opportunity for the long run investors. Since,this sector is showing a very good growth as March sales figures showed an increase of 17 %.Chinese companies are planning to invest in the Pakistan auto sector apart from their CPEC projects.French company Renault is also planning to start manufacturing cars in Pakistan from the year 2018 and this will really boost the overall Pakistani auto sector.Value investors can improve their gains through investing in the undervalued and fundamentally strong growth shares.

About Emaad Qureshi