Pakistan stock market saw a positive week as Karachi stock exchange -100 index climbed 1221 points during the week.The recovery in international oil and equity markets were the two main reasons for the encouraging performance of the local stock market.
Karachi stock exchange -100 index started the week at 37689 points and ended the week at 39188 points.The index also touched its highest level during the last trading week.It touched highest level of 39257 points.Both foreign and domestic investors were positive about the Pakistan stock market.Foreign investors were the net buyers during the week as they bought net equity $ 21.4 million.Last week foreign investors were net sellers of about $ 1.19 million during the week.
Karachi stock exchange -100 index started the week at a positive note as global stock markets and international oil market showed some recovery. The rising trend of the Pakistan stock market continued during next threetrading days of the week.The index fell by 68.52 points on the last day of the trading week.
The weekly share trading volume showed an increase as compared to the last week.The share trading volume of 970 million shares as compared to the last week’s volume of 110 million shares.The trading volume was very low last week due to shortened week because of Eid holidays in the whole country.
Best and Worst Performers of the week
Oil exploration,cement and Pharmaceutical sectors were three best performers of the week.The main stocks of these sectors performed brilliantly throughout the week.If we talk about the Cement sector,Attock Cement,Cherat Cement and Bestway cement were top gainers of this sector.The share prices of Attock Cement,Cherat Cement and Bestway cement increased by8.499 %,10.404 % and8.020 %.As far as Pharmaceutical sector is concerned,Abbot labs,Ferozsons labsand Glaxo Smithkline are three top performers of the week.The share prices of Abbot labs,Ferozsons LTD and Glaxo Smithkline rose by5.006%,4.154 %and9.173%.
The Oil exploration sector also showed good performance in the previous week. Its main shares such as Mari Petroleum,Oil and Gas development and Pakistan Oilfield rose by7.889% ,5.395%and 9.065%.The individual shares listed in MSCI index such as Habib bank Limited,Hub Power,OGDCL and Lucky cement added 485 points in the Karachi stock exchange -100 index.
Food and banking sector were the worst performers of the week at the Pakistan stock market.
Market analysts are quite upbeat about the future of the Pakistan stock market.The current investors sentiment is very positive about the domestic stock market.Many positive things are happening and they will definitely leave a positive impact on the stock market.The record foreign exchange reserves,revised upward GDP projections by IMF and new oil/gas discoveries will definitely leave a positive impact on the Pakistan stock market. Foreign exchange reserves first time touched $ 23 billion mark.The IMF has revised the GDP growth rate for the year 2016-17 to 4.7 % .
Although market sentiments are very positive ,but still analysts are skeptical about the domestic political scenario. They fear that any type political agitation by the opposition parties can create political and economic instability in the country.This instability can create hurdles in the upward progress of the Karachi stock exchange-100 index.
The upcoming monetary policy and earning season results can also affect the short term and long term prospects of the domestic stock market.The increase or decrease in the interest rates will definitely affect the trading behaviors of the stock investors.
Cement and Pharmaceutical sectors are best investment for the short and long term investors.They can easily earn handsome bucks by investing in these two sectors.