Pakistan stock market saw a mixed week as Karachi stock exchange-100 index lost 341 points during the week.The improvement in the oil prices and political uncertainty were two vital factors affecting the investing behaviors of stock market traders at the Pakistan stock market.The Karachi stock exchange -100 index started the week at the 42750 points and ended the week at 42409 points .The average daily trading volume showed a decrease of 14 % during the week.
The interest of the Foreign investors has decreased in the domestic stock market . Foreign investors bought net equities of $ 0.52 million during the week.
The analysts at Money and Matters are expecting a mixed market trend in upcoming weeks.The political uncertainty and the uncertain oil market will play their roles in affecting the investing behaviors of the stock market traders.
The accountability court has summoned the EX-PM on 09 October,2017 for trail and indictment.Court has also asked his sons and daughter to present themselves in front of the court on the same date.Court has also issued non-bailable warrants of the sons and daughter of Nawaz Sharif.The use of bad language of PML-N leaders against the Supreme court is increasing the political instability in the country. They must keep in mind that few of their leaders are already facing contempt of court cases. The LHC has started hearing different petitions related to 2014 model town incident. The above mentioned incidents will surely affect the market sentiment and investing behaviors in the current week.
The international oil prices have showed a very good recovery in last one week.Kurdish voters have cast their vote in favor of independence from Iraq last week. The Iran has decided to impose a trade embargo on the Kurdish region in response of the Referendum results. Moreover,strict response is expected from other regional powers such as Turkey.It is estimated that imposition of the trade embargo from regional countries can disrupt the flow of oil as much as 500,000 barrels /day to the Kurdish region .This oil was exported through a Turkish port.The American Oil demand has also picked up after the Hurricane Harvey.
The above mentioned two factors may increase the international oil prices. Therefore,investors can benefit from fluctuations in the oil prices.They can earn good return by using day trading strategies during the week.
The Karachi stock exchange-100 index is facing strong resistance between 40000 to 42000 points.The ongoing political uncertainty and lack of strong triggers will keep the index in check during the current week.The investors should look for long term value investing .Since,stocks of high growing sectors such as cement are available at very low prices.This strategy will help them increase their long run returns.