Pakistan stock market saw a positive week as Karachi stock exchange-100 index rose by 589 points during the week. The ongoing political uncertainty ,profit taking and global stock market surge were three major factors affecting the investing behaviors of the Pakistan stock market.Karachi stock exchange-100 index also breached the 50000 points mark first time in its history ever.
Foreign investors took a backseat as they were not much confident about the future prospects of the Pakistan stock market.They sold net equities of approx $ 13.7 million during the week.
Pakistan stock market started the week with positive momentum and continued its sew-saw journey throughout the week.Karachi stock exchange-100 index rose by 511.35 points during the first day of the week. The positive market performance was mostly influenced by the continuation news of subsidy for the fertilizer sector.The positive momentum in next four days was little bit affected by the political uncertainty and profit taking by the local and foreign investors. Karachi stock exchange-100 index lost -97.89 points during the last four days of the trading week.
Karachi stock exchange-100 index started the week at 49364.83 points and ended the week at 49963 points. The weekly share trading volume showed an increase of 34.7 % as compared to the last week. The weekly share trading volume was approximately 2615 million shares.
Best and Worst Performers of the week
Fertilizer sector and Power sectors were two best performing sectors at the Pakistan stock market. Fertilizer sector improved its position after news of continuation of subsidies by the Pakistan government.
Power sector was mainly helped by the news about the Hubco. It has showed interest to increase its share in China Power Hub Power Generation Company.This news helped HUBCO to add 147 points to the Karachi stock exchange-100 index.
K-Electric Limited was another very active share of this sector.It was the volume leader during the week, This share added 60 points to the Karachi stock exchange -100 index . Shangai electric has showed interest to invest in the K-electric..This news has increased interest of investors in the stock.
Market analysts are expecting a mixed trend in upcoming week.Supreme court proceedings and fluctuations in the oil market will define the momentum of the next week.
Panama case has entered into its final and defining phase. Investors are keeping a close eye on this case.Any decision against PM can create temporary instability in the local stock market.Political parties have to play a very matured role to keep tings calm and stable.
Power sector is a very good investment option for the long run. HUBCO and K-electric have very good long term expansion plans.These plans will help power sector to grow in the short and long term.
Oil and Gas sector offers a short run earning opportunity for the investors.Stock market analysts are expecting a uncertain week for the oil market.American producers have announced to increase their oil production.It is expected that oil prices will hover between $ 53/barrel and $ 55/barrel during the next week. Investors can easily earn short term gains by taking advantage of fluctuations in the market.They can earn short term gains by using day trading strategies.