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Karachi stock exchange-100 index lost 360 points amid Political Uncertainity

Pakistan stock market saw a negative week as Karachi stock exchange-100 index lost 360 points during the last week.The market was under pressure due to the expected inclusion of the  Pakistan in the FATF list and ongoing political uncertainty. The Karachi stock exchange -100-index started the week at the 43809 points and ended the week at  43449 points.

The foreign investors are really concerned about the economic situation of the country as economic woes of the country are increasing. Foreign investors were involved in heavy selling during the whole week.Foreign investors offloaded net equities of $ 8 million during the week.

Future Outlook

The analysts at Money and Matters are expecting negative sentiments at the Pakistan stock market in upcoming days.The upcoming company results, political uncertainty, and worsening economic conditions of Pakistan are three most important factors who will affect the Pakistan stock market in upcoming days.

The supreme court announced its decision to disqualify Nawaz Sharif as a President of PML-N last week.This decision increased the tussle between the Sharif family and the Supreme court of Pakistan. Moreover, the difficulties of Sharif family are increasing with every passing day. The  National accountability bureau Punjab is also getting active.It has recently arrested renowned bureaucrat Ahad Cheema for doing corruption in housing schemes.The ongoing corruption cases in Punjab and Islamabad are creating political uncertainty in the country. It is expected that political uncertainty will keep affecting the stock market till the elections 2018.

The international oil market saw a bullish trend in last week.Moreover, recently EIA has published its energy report and it gave very encouraging news about the international oil market.This report has stated that American oil fields such as Cushing have very low oil inventories and these low inventories can really push oil prices upwards in next few days.The short run traders can easily use day trading strategies to earn some quick returns from investing blue-chip stocks of the oil sector.

 Market analysts are not expecting any big rally till the election 2018. This is the ideal time for short-run investors to book some profits by using swing trading strategies in the Pakistan stock market.The time period until the election 2018 is also a very good time for the value investors to build long-term investment portfolios.However, they have to search for fundamentally strong stocks in growing sectors.The cement, banking, and steel sectors are three growing sectors who will benefit from the upcoming infrastructural projects in Pakistan.

DISCLAIMER: All the information is provided for information purpose only. The information has been obtained from the sources believed to be reliable. Analysis provided is opinion only. This is not a BUY CALL. You are solely responsible for all types of investment and trading decisions made by you.

About Emaad Qureshi