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Karachi stock exchange-100 index lost 433 points amid Rising Oil prices

Pakistan stock market saw a negative week as Karachi stock exchange-100 index  lost 433 points during the week.The profit taking ,political uncertainty and  rising oil prices were three most factors affecting the stock market traders at the Pakistan stock market.

The incerased political tesnion between Supreme court and Ex-prime minister has created ripples in the stock market.Political noise is still affecting the behaviours of the market investors as PML-N ministers are still spitting venom against state instittions.  Foreign investors  are still not comfortable with the Pakistan stock market.Therefore,they sold net equities of  $ 9.7 million during the week.

The Karachi stock exchange -100 index started the week at the 43078 points and ended the week at  42645 points .The average daily share trading volume showed a decrease of more than 10 % during the week .The daily share trading volume was  165 million shares this week .

Future Outlook

Market analysts are expecting a negative market trend  during the upcoming week.The political uncertainty, eid holidays and international oil prices will play an important role in affecting the Pakistan stock market. The NA-120 By-election campaign is in full wing as both PML-N and PTI are fighting hard for this constituency. Minister Nawaz Sharif and his ruling party has continued its policy of threatening the Supreme court .He also  trying to pressurize and influence NAB courts by using PML-N government resources. The upcoming NA-120 election and ongoing NAB cases of the ruling party is creating political uncertainty in the country.

Market analysts are expecting a rise in the oil prices due to unexpected closure of oil refineries in the  Texas-US .Since,Texas has one of the largest refineries of the country.The  hurricane Harvey caused  closure of Texas oil refineries and it is still not clear about its reopening . The increase in the oil prices can really improve the returns of the oil based stock investors.It is expected that Brent oil futures may hover between $ 50/barrel and $ 55/barrel.continue to expand. US oil market experts believe that  US shale production will meet 75% of global demand in next few years.

Karachi stock exchange 100 index has lost more than 6000 points since January 04,2017. According to the most of market experts,political uncertainty is the main reason for this huge fall in last 8 months.So, value investors have to adopt wait and see policy to find the right moment to enter the market.Since,most of the experienced investors think that  index may fall more in upcoming months.

The daily fluctuations in the market offer very good opportunities for the day traders to earn some quick bucks.So,this is an ideal time for the day traders as they can improve their short run returns by using day trading strategies.

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About Emaad Qureshi