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Karachi stock exchange -100 index lost 524 points

Pakistan stock market saw a negative week as Karachi stock exchange-100 index fell by 524 points during the week.The heavy activity in the cement sector and fluctuations  in the international oil markets were two most important factors affecting the buying behaviors of the investors in the Pakistan stock market.

Foreign and domestic investors remained confused about the future prospects of the overall stock market.Foreign investors were net sellers during the week.They sold net securities of $ 46.96 million during the week.

The Karachi stock exchange-100 index started the week at 42847 points and ended the week at 42324  points.The weekly share trading volume showed a decrease of 7.1 % as compared to the last  week.The current week share trading volume was 2293.1436 million shares as compared to the last week’s volume of 2468.4 million shares.


Sector to Watch

Pakistan Association of Automotive Parts and Accessories (PAAPAM) is very optimistic about getting orders from the American auto parts manufacturer for a new model of Fiat Chrysler.This model will be launched in 2017-18. This is a very encouraging news for the long term investors of the Automotive Parts and Accessories sector.They can maximize their long term profit by investing in this sector.

Chairman PAAPAM Mashood Ali Khan lead a delegation of the business trip to the Germany,USA,  and Italy.This delegation arranged meeting with the  bigwigs of Fiat Chrysler Automobile Tire 1 manufacturers. Fiat Chrysler Automobile has  a long term plan of introducing a new model in 2017-18, with an expected production of 2 million cars.

Best and Worst Performers

Cement sector was the best performing sector of the week. Attock cement,Best Way cement and Cherat cement were three best performing shares of the sector.Cement sector grew by 5.8 % as coal prices were reduced during the week.Auto parts sector also performed well during the week.Atlas battery was the best performing share in the auto parts sector.

The auto sector was the worst performing sector of the week. HinoPak was the best performing share of this sector during the week.

Future Outlook

Market analysts are expecting a mixed sentiment in the upcoming week.The ongoing political uncertainty and international oil market will play an important role in influencing the short term investing behavior of the Pakistan stock market.Panama case is pending in the supreme court and its results can create uncertainty in upcoming week.Investors can maximize their short run return through investing in  oil and gas sector.

About Emaad Qureshi