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Karachi stock exchange-100 index rose by 172.27 points during the week

Pakistan stock market saw a mixed week as   Karachi stock exchange-100 index  rose  by 172.27 points during the week. The fluctuations in the oil prices,political uncertainty ,profit taking and institutional buying were four major factors affecting the market sentiment of the Pakistan stock market. Foreign investors showed minimum interest in the local market.Foreign investors offloaded net equities of $ 46.2 million during the week.

Pakistan stock market started the week with negative momentum and continued its momentum throughout the week.The Karachi stock exchange-100 index  rose by just 1 point on the first day of the week.There was  a profit taking by the most investors at that day.The index fell by 173 points during the second day due to discontinuation of subsidy for the fertilizer sector. The stock market saw  institutional buying by the big investment funds companies on the third  day of the week.The index rose by 505 points during that day.The next 2  days saw a fall of  452 points  in the Karachi stock exchange-100 index .The surge in the international oil prices dictated the investing behaviors of the stock market investors.

Karachi stock exchange-100 index started the week at 49037.97 points and ended the week at 49210.24 points. The weekly share trading volume showed an increase of 19.7 %  as compared to the last week. The weekly share trading volume was  approximately 2443.077 million shares as compared to the last week’s volume of 2041 million shares.

Best and Worst Performers of the Week

Textile sector and Power sector were two best performing sectors at the Pakistan stock market. HUBCO and KAPCO wee two best performing stocks of power sector.

Fertilizer sector was the worst performer of the week.This sector lost its charm after the discontinuation of subsidies by government.

Future Outlook

Market analysts are expecting a mixed trend in upcoming week.Supreme court proceedings and upcoming corporate earnings will define the momentum of the next week.The fluctuations of the international oil prices  will also play an important role in affecting the market sentiment.

Investors are keeping a close eye on the panama case proceedings. Lawyers of Prime ministers will present their arguments in supreme court.Any decision against prime minister can create temporary uncertainty in the market.

Textile Sector can be a very good long term investment option for investors.Government has announced 180 billion package for the textile sector.This package can really boost the textile sector and it will also bring investment in the sector.This package includes concessionary rebates and removal of regulatory duties etc.

Power sector is a very good investment option for investors in the long run.The power sector stocks such as HUBCO and Kapco have very good growth potential. HUBCO has announced to increase its stake in the joint venture with the China Power.It has decided to increase its share from 26 % to 47.5 % .Power sector has a very good share in the CPEC. This will bring more investment in the sector.

Investors should adopt buy and hold strategy for the next week.Any news about the result of Panama case can create political uncertainty. This certainty can bring negative results for the Pakistan stock market.

 

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About Emaad Qureshi