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Karachi stock exchange-100 index rose by 369 points during the week

Pakistan stock market saw a positive week as   Karachi stock exchange-100 index  rose  by 369 points during the week. The news of corruption allegations on lahore based brokerage house,actions by SECP and fluctuations in the international oil market  were three major factors affecting the investor’s sentiment at the Pakistan stock market.

Pakistan stock market started the week with positive momentum and continued its positive momentum throughout the week.Market rose by 74 points on first day of the week. Institutional buying by big market players helped index to reach the positive zone.Karachi stock exchange-100 index  passed through some hiccups during the week.The negative news about MR securities disturbed the market momentum during the whole week.Karachi stock exchange-100 index  rose by 295 points during last four days of trading week.

Karachi stock exchange-100 index started the week at 49556 points and ended the week at  49925 points. The weekly share trading volume showed an decrease of  12 % as compared to the last week. The weekly share trading volume was  approximately 2070 million shares.

Foreigner and domestic investors showed serious interest in the Pakistan stock market.Foreign investors bought net equity of $ 5.4 million during the week.This shows their growing confidence on the Pakistan stock market.

Best and Worst Performers of the Week

Oil & Gas marketing sector and financial sector performed better than other sectors at the Pakistan stock market.Oil and gas and marketing sector’s positive performance was aided by news of expansion plans by the government.financial sector performed well due to its heavyweight HBL share.

Future Outlook

Market analysts are expecting a mixed trend in the Pakistan stock market for this week. Uncertainty in the domestic politics,fluctuations in oil prices and actions by SECP will affect investing behaviors of investors in the local stock market.

Panama leaks court case proceedings will start from 15th February 2017. PTI has announced to present more proofs in the court.Most of legal experts are expecting disqualification of the prime minister due to corruption charges on him.Any decision against Prime minister can create uncertainty in the market.

International oil market is passing through a very interesting  times .OPEC deal has started to materialize but still oil prices are not falling sharply.The reason  is increase in the oil drilling rigs in USA.They increased by 8 in number during last week.This is creating doubts in minds of investors regarding oil future prices.Stock market investors have to be remain cautious about progress in international oil market.

A Lahore based stock broker named MR securities has allegedly committed billion of rupees fraud against small investors. SECP and PSX have launched a serious against MR securities.This incident has badly hurt investor confidence and will keep on hurting their confidence for next few weeks. SECP is also pushing  small brokers to comply with the SECP regulations.

Stock market investors should adopt buy and hold strategy for the  week.They can maximize their returns on their investments by buying stocks at dip. They can also earn short term gains by investing in oil based stocks.They can earn short term gains by using day trading strategies in oil based stocks .

About Emaad Qureshi