Pakistan stock market saw a positive week as Karachi stock exchange -100 index rose by 263 points during the week.The auto sector and banking sectors attracted maximum investment from the investors. Oil and gas sector also played a significant role in influencing the movement of Karachi stock exchange-100 index.The local stock market got minimum trading volumes due to the muhrram holidays.
Pakistan stock market started the week at a positive note as Karachi stock exchange -100 index rose by 203 points on the first day of the trading week.The stock market showed a good performance on the first day due to overall positive sentiment in the market.The market opened on Thursday and rose by 61 points in next two days of the trading week.The investors showed their interest in the auto and banking sectors.These two sectors helped the index to enter into the positive zone.
Karachi stock exchange -100 index started the week at 41200 points and ended the week at 41464 points.the share trading volume showed a decrease due to the shortened week.The weekly share trading volume was 1212 million shares.It was 33.2 % decrease as compared to the last week’s share trading volume.
Best and worst Performing Sectors
Auto and banking sectors were the best performers at the Pakistan stock market. Auto sector grew by 3 % .Auto sector growth was helped by car sales data.
Banking and oil/gas sectors grew at a healthy rate of 1 %.The record crude production by the OGDC played an important role in the rise of the Oil sector.The international crude price started the week at 49.57/barrel and ended the week at $ 50.35/barrel.
Cement sector performance was not up to the mark during the week.It fell by 1 % during the week.Investors were not much interested in the sector.
Sector to Watch
Cement Sector is still best investment option for the long run.Investors can maximize their long term gains by investing in these sectors.
Market analysts are quite upbeat about the future prospects of the stock market. According to them, market will be influenced by upcoming corporate results,domestic political environment and performance of the international oil market.Market will see a boom in mid and small cap companies .
The upcoming financial results of important companies like JS Investments limited,Engro Polymer and Chemicals Limited ,United Bank Limited and Pakistan Tobacco company limited are expected in the next week.Good financial results will improve investing prospects of these companies.This will also help Karachi stock exchange 100 index to grow in a positive direction.
Russia has agreed to sign an oil-output deal to support the international oil market.Analysts are expecting international oil prices to remain in the range of $ 50/barrel to $ 55/barrel in upcoming weeks.So this means that oil and gas sector is a good investment option for the short run.
Domestic political environment will play an important role in affecting the stock market.Supreme court of Pakistan has decided to hear the petitions for the disqualification of the Prime minister nawaz sharif. SC will start hearing these petitions on 20th October 2016. PTI and JI decided to file petitions in SC,after the failure of the PML-N government to address the Panama leaks issue.The disqualification of the prime minister can create uncertainty in the Pakistan stock market.