Karachi stock exchange -100-index rose by 337 points during the week. The political and slight rupee recovery helped it in its upward movement. The market has reacted very positively to the PTI government.
Domestic investors showed some interest in the Pakistan stock market due to political stability and earning expectations. However, foreign investors sold net equities of $ 38.6 million during the week.Karachi stock exchange-100 index started the week at 42505 points and ended the week at 42842 points.
The experts at Money and Matters are predicting a ranged bound week at the Pakistan stock market. The rupee appreciation, political stability, and fluctuations in the international oil prices will keep on affecting the Pakistan stock market in the next week.
The ministers of the new PTI government are ready to take their oath . This is a very good sign for our democracy and Pakistan stock market.It expected that Market will stay positive in next few weeks as we are seeing the second safe transfer of power in last one decade.
The current account deficit and sudden rupee devaluation in the last few months have put huge pressure on the foreign exchange reserves of Pakistan.The foreign exchange reserves are currently standing at $ 14.5 Billion.
The PTI govenrment has decided to search for different national and international avenues to fill out the gaps in the current account of the country.
The earning results of the blue-chip companies in cement and steel sectors will keep affecting the Pakistan stock market in upcoming weeks.The good earning results will move the stock market in a positive direction.
Investors must hold their stocks of high growth stocks related to cement and steel. This is an ideal time to collect stocks for value investing. Since blue chip stocks are easily available at very cheap prices and KSE-100 index is also at very low P/E. It is expected the Karachi stock exchange -100-index will move between 42000-50000 points range during the current year.