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Karachi stock exchange-100 index lost 815 points

Pakistan stock market saw a negative week as  Karachi stock exchange-100 index  lost 815 points during the week. The falling oil prices ,institutional selling and Political uncertainty badly affected the proceedings of the stock market. Foreign and domestic investors are still very confused about the future political situation.So,they took a backseat throughout the week and are waiting for the verdict of panama leaks case.  Hence, Foreign investors  sold net equities of worth $ 19 million during the week.

Pakistan stock market started the week on a negative note as political uncertainty and falling oil prices kept investors guessing.Moreover,these two factors were major causes of the negative market sentiment throughout the week.Karachi stock exchange-100 index lost 1019 points during the first three days of the trading week.The Pakistan stock market showed some recovery as Karachi stock exchange-100 index rose by 206 points on back of  surging petrol prices in the domestic market.

Karachi stock exchange-100 index started the week at 48970 points and ended the week at  48155 points. The weekly share trading volume showed a decreased of 12.02 % as compared to the last week. The weekly share trading volume was  approximately  1032 million shares as compared to the last week’s volume of 1172.9172 million shares.

Best and Worst Performers of the Week

Auto sector showed a satisfactory performance during the week. Millat tractors and Phillip Morris were best performing shares of this sector.Phillips Morris and Millat tractors added 200 points to the Karachi stock exchange-100 index.

Oil and Gas sector was the worst performer of the week. Hascol Petroleum and Sui northern were two major losers of the week.They were badly hit by the fluctuating international oil prices during the week.

Future Outlook

Market analysts are expecting a mixed trend during the next week. Panama case,fluctuating oil prices will affect the Pakistan stock market.Panama case verdict is creating  political and market uncertainty for last few weeks .Most of the legal experts are expecting a verdict against the prime minister of Pakistan and it will create temporary panic in the market.Buy and hold strategy is best available  strategy for the investors.Investors can invest in the shares available at the discount.

There is a serious instability in the international oil market. Market experts are declaring OPEC oil  cut deal a a failure as it has failed to bring benefits for the oil producing countries. Moreover,tussle between the OPEC and US shale producers is also creating instability in the oil market.There is strong competition between these two for the market share. International oil prices touched lowest level since November 30 ,2016.The international oil prices started the week at $ 48.12 and ended the week at $ 50.60.This market situation is creating opportunity for the day traders who want to earn short term returns from the price fluctuations.

Power  and cement sectors are two most important sectors for the long run investors as long term investment in this sector is increasing with every passing week. CPEC $ 46 billion to $ 54 billion in less than one year.Long run investors can easily improve their returns by investing for 2-3 years time horizon.


About Emaad Qureshi