Pakistan stock market saw a negative week as Karachi stock exchange-100 index lost 492 points during the week.The market was under pressure due to decline in the foreign equity markets and falling oil prices. The US stock market alone lost about $ 1 trillion during first five days of the February 2018.The Karachi stock exchange -100-index started the week at the 44301 points and ended the week at 43809 points.
The foreign investors are still worried about the weakening rupee in the international currency market. Foreign investors were involved in heavy selling in the last trading day of the Pakistan stock market.Foreign investors sold net equities of $ 9.3 million during the week.
The market analysts at Money and Matters are expecting mixed sentiments at the Pakistan stock market in upcoming days.The political uncertainty, falling international oil prices, and upcoming company results will continue affecting the domestic stock market.
The ongoing NAB cases against the Sharif family have just entered into a final phase.The difficulties of Sharif family are increasing with every passing day. The top PML-N leadership is facing contempt of court cases in the court.The tussle between Sharif family and Judiciary is also creating issues for the ruling party. The political uncertainty will keep affecting the stock market till the elections 2018.
The fast-rising oil output in the United States of America will eventually put more pressure on the oil prices.The international oil agency has raised its predictions for the oil demand but still, experts are showing concerns over growing US oil output.The oil demand predictions have been increased from 1.3 million bpd to 1.4 million bpd for the current year.The US oil industry has successfully controlled its costs and it has increased its overall efficiency.It also helped it to improve its overall production.
Market analysts are not expecting any large rally till the election 2018. The time period until the election 2018 is a very good time for the value investors looking to build their long-term investment portfolios.