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Karachi stock exchange-100 index lost 407 points

Pakistan stock market saw a negative week as Karachi stock exchange-100 index lost 407  points during the week.The heavy profit taking of the investors and falling oil prices were two prime movers of the domestic stock market. Domestic and foreign investors were discouraged by the company results and they remained net sellers in last few days of the trading week. Foreign investors sold  net equities of about $ 10.7 million during the week.

Karachi stock exchange-100 index started the week at 49708 points and ended the week at 49301 points. The weekly share trading volume showed an increase of 29  % as compared to the last week. The weekly share trading volume was approximately 1795  million shares as compared to the last week’s volume of 1390 million shares.

Pakistan stock market started the week on a positive note on the back of positive vibes coming from Panama verdict . The Karachi stock exchange-100 index climbed by 403 points during first trading days of the week. Karachi stock exchange-100 index fell by 809 points during the last 4 days  of the trading week.  The after shocks of the Panama verdict are still felt by the Pakistan stock market .

Best Performers of the week

Auto sector and glass & ceramics was the best performing sector of the week. The auto sector and Glass & ceramics grew by 10 % and 9% respectively.

Cement and Oil marketing sectors were two worst performing sectors of the week. Cement and Oil marketing sectors fell by 4 % and 1% during the week.

Future Outlook

Overall Pakistan stock market has a very decent outlook and it is offering very favorable investing environment for the investors.  Market analysts are expecting a mixed sentiment in the next week. The political uncertainty, and oil price fluctuations will play most important role in affecting the Pakistan stock market next week.

Prime Minister is partially safe after the Panama verdict given by the Supreme Court on  last Thursday. Two judges have declared him dishonest and other three have referred this matter to JIT. So this means that Prime minister is not completely safe.Prime Minister is currently under pressure to prove his innocence in the Panama case. PTI is also trying to create more pressure through rallies and Jalsas. PTI is demanding resignation from the Prime minister.Moreover, Dawn leaks issue is creating tension between government and the military establishment. This situation is ideal for the value investors as they can invest in fundamentally strong shares to improve their long term gains.

Auto sector is offering a very good investment opportunity for the long run investors.Chinese and other international companies are interested in investing in the auto sector.So,investors can really improve their investment portfolio through investing in the auto sector stocks.

OPEC has unveiled its plans to improve the pricing situation in the international oil market.There is a plan to decrease the international oil supply as it will help improve the profit margins of the oil producing countries.Market experts are expecting an increase in the oil prices. Investors can take advantage of the fluctuating oil prices. So,in this situation investors can really earn short term returns through using day trading strategies.

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About Emaad Qureshi