Pakistan stock market saw a mixed week as Karachi stock exchange-100 index lost just 37 points during the week.The surge in the oil prices and political uncertainty were two important factors affecting the investing behaviors of stock market traders at the Pakistan stock market.The Karachi stock exchange -100 index started the week at the 42787 points and ended the week at 42750 points .The average daily trading volume showed a surge of 9 % during the week.
Foreign investors have showed good amount of interest in the domestic stock market during the week. Foreign investors bought net equities of $ 0.4 million during the week.
The analysts at Money and Matters are projecting a mixed trend in the upcoming days.The uncertainty in the international oil market, and political uncertainty will play an important role in affecting the investing behaviors of the stock traders.
The PML_N government is facing a very tough time nowadays.Since,its former ministers,current finance minister and other prominent leaders have to face severe corruption charges in next few weeks. The NAB has asked Ex PM Nawaz sharif to present himself in the accountability court on 26th September 2017.NAB may ask PML-N government to arrest the Nawaz sharif. The finance minister may be indicted in upcoming days on the corruption charges. LHC has asked Punjab government to make model town incident inquiry report public. LHC has also formed a special bench for the hearing of this case.All the above mentioned incidents can badly affect the investor sentiment in upcoming days.
The international oil prices have showed a very good recovery in last one week.Market analysts are predicting an improvement in the oil demand and that can positively affect the oil prices at the international level.Stock traders can earn some return through using the price fluctuations in the oil market.
According to the market analysts at Money and Matters,Karachi stock exchange-100 index may fall below 40000 this week. However it may face a strong resistance at the 40000 points level.This is an ideal time for the long run investors to enter the market.Since lots of blue chips stocks of strong sectors like cement are available at cheap prices. Investors can also add income stocks in their portfolio who want to invest for the long run and adding income stocks is also very important to diversify the risk.