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Karachi stock exchange -100 index rose by 1836 points after MSCI inclusion

Pakistan stock market saw a positive week as Karachi stock exchange-100 index climbed 1836 points during the week.It is highest increase in the index in last three years.The inclusion of Pakistan stock market in the MSCI(Morgan Stanley Capital international) index and brief recovery in the oil prices were two main reasons for this soaring performance of the local market.The high level trading activity in the cement and banking sectors also played their part in the rise of market.

Karachi stock exchange-100 index started the week at a positive note after recovery in the international oil prices.The upward momentum continued in the next four days of the trading week.The upgradation of the Pakistan stock market by the MSCI was the prime reason for great performance of the stock market in next four days of the trading week.The inclusion of the Pakistan stock exchange in the MSCI has really improved the overall reputation of the local market in the eyes of the international players. Foreign investors made net portfolio investments of $ 19.6 million during the week.

Karachi stock exchange -100 index started the week at 36940 points and ended the week at 38776 points.And nowKarachi stock exchange -100 index is standing at its highest level of 38776 points.The average share trading volume showed a 21 % increase as compared to the last week.The weekly share trading volume was 917.089 million shares as compared to the last week’s volume of 759 million shares.This is a healthy increase in the share volume as compared to the last week.

Pakistan stock market

Best and worst performers at the Pakistan stock market

Banking and cement sectors were the best performers at the domestic stock market.The heavyweight stocks of the banking setcor such as MCB ,HBL and UBL offered very high rate of returns for the investors. MCB,HBL and UBL share prices increased by14.8 % ,20.9 % and 12 % respectively during the week.According to the data,these three banks collectively added 901 points to the Karachi stock exchange -100 index.

Cement sector also played an important role in the surge of the local market. DG Khan cement,lucky cement and Maple leaf cement were three top performers of the sector.The share prices ofDG Khan cement,lucky cement and Maple leaf cement increased by 7.86 % , 8.71 % and 11.39 % during the week.

Engineering sector was one of the worst performers at the Pakistan stock market .It fell by 1.3 % during the week.

Future outlook

Market analysts like KASB securities are expecting increased volatility and decrease volumes in upcoming days.The Brexit referendum and fluctuations in the international oil prices will play most important role in influencing the trading at Pakistan stock market. The news of MSCI inclusion will continue playing its positive role as it has really improved the investment climate of the domestic stock market. Pakistan government is expecting foreign investment of about $ 800 million in next one year due to the MSCI inclusion.

The Pak-Afghan border tension and domestic political instability can also play an important role in affecting the trading atPakistan stock market. Pakistan government must come forward and solve the Panama leaks issue as soon as possible. The early solution of the Panama leaks issue will improve the investor’s confidence and also the investment climate.

About Emaad Qureshi