Pakistan stock market saw a negative week as Karachi stock exchange-100 index lost 884 points during the week.The political uncertainty ,rise in oil prices and profit taking by the investors were three most factors affecting the market sentiment at the Pakistan stock market.
The political crisis has really affected the local investors and they are waiting for the final verdict of the Panama case. However,foreign investors showed some interest in the Pakistan stock market.Therefore,they were net buyers of $ 15.7 million during the week.
The Karachi stock exchange -100 index started the week at the 45222 points and ended the week at 44338 points .The weekly share trading volume showed an increase of 5 % .The Weekly share trading volume was 872 million shares this week as compared to the volume of 830 million shares in the last week.
Market analysts are expecting a negative market trend in the current week as investors are keeping a close eye on the Panama case.Political uncertainty is on the peak due to this case.Supreme court will start proceedings on the JIT report on 17th July,2017. Supreme court can take 1-2 weeks in giving its final verdict.Legal experts believe that there is every chance that Supreme court will disqualify Nawaz sharif as JIT has submitted substantial evidence against him.Therefore,disqualification of Nawaz sharif can create uncertainty and will badly affect the Pakistan stock market.
This is a very good situation for the value investors as they can easily invest in value stocks trading at discounted prices. In these types of situations experienced and matured investors combine their value investing strategy with income investing strategy to get maximum benefits.Value investing will also help investors to take advantage of the future potential of the undervalued stocks.
The international oil market is passing through its most critical phase as there is lots of uncertainty in the market.The experts at international financial institutions such as Goldman Sachs are not very hopeful about the oil market.They are expecting oil prices to fall even below $ 40 /barrel in next few months.US shale production is causing uncertainty in the oil market and OPEC supply reduction strategy has failed. Therefore,now prices are again at the pre-OPEC agreement level.The growth in US oil production is directly affecting the oil market demand and supply situation.
The volatility in the oil prices is very good for the short run investors.They can maximize their investment returns using day trading strategies . They have to invest in most valuable oil based stocks listed at Pakistan stock market.