Pakistan stock market saw a positive week as Karachi stock exchange-100 index gained 615 points during the week. The Political uncertainty ,brokerage houses issues,and profit taking by brokers were three major factors affecting the investors behavior at the Pakistan stock market.
Foreign investors and domestic investors are still not very confident about the future prospects of the stock market.Foreign investors offloaded net equities of worth $ 32.7 million during the week.
Pakistan stock market started the week on a negative note as investor sentiment was very low in the market. Karachi stock exchange-100 index lost 487 points on first day of the week. The brokerage issues negatively affected the market on first three days of trading week.The domestic and foreign investors kept themselves range bound. .So,Karachi stock exchange-100 index gained 1101 points during last four days of trading week.
Karachi stock exchange-100 index started the week at 49008 points and ended the week at 49623 points. The weekly share trading volume showed an decreased of 6.6 % as compared to the last week. The weekly share trading volume was approximately 1503.74 million shares as compared to the last week’s volume of 1610 million shares.
Best and Worst Performers of the Week
Individual heavy weight stocks played an important role in fueling the recovery of the stock market in 4th trading day of the week. HBL,SNGPL and MLT were three most influencing stocks of the week. HBL,SNGPL and MLT rose by 4.6 % ,9.9 % and 8.8 % respectively.Moreover,HBL, SNGPL and MLT added 160.6 points ,51.5 points and 48.1 points respectively to the Karachi stock exchange-100 index.
Market analysts are expecting a mixed sentiment during the next week. Panama case verdict is expected next week and market will take its cue from the final decision of the Supreme court.Any decision against the Prime Minister can really create uncertainty in the market.The Ongoing investigations against brokers and fluctuations in the international oil prices can also affect the investing behaviors of the investors during the week.Short term investors can maximize their gains through investing in oil stocks.They can improve their gains through applying day trading strategies on oil stocks.
Buy and hold investing strategy is best for this uncertain political and investing environment. They can maximize their returns on their investments by buying stocks at dip.They should wait for the dust to settle on the Panama cases and brokerage house investigations. Buy and hold strategy is also very fruitful for good long term investing. Investors can improve their return by investing in good performing sectors like Cement.