These weak raging bulls remained in control as Pakistan stock market showed a strong gain. The benchmark KSE-100 index rises by 2,116 points (4.89%) to close at 45,387. The sturdy oil prices and exciting sales figure in cement and industrial sector was the talk of the town.
So, let us discuss top five new that can affect stock market in the next week:
The Gwadar Port
The Gwadar port will bring lots of investment in the growing economy of the Pakistan. This port started its test operation on Friday by carrying first container ship named APL Japan. This port has the capacity to handle 3.1m Twenty feet equivalent units (TEU’s) and a storage yard to accommodate 550,000 TEU’s in a year.
How will it affect the stock exchange? The answer is quite simple; the investors always favor a business friendly environment. This kind of positive news will increase the confidence of the investors to invest in the money market of the Pakistan.
You can’t miss the oil news if you are keen investor. The investors always keep an eye on the oil prices, which were suffering a downfall in last sixteen months or so.
But, maybe the wait is over and a good news for the oil investors. The OPEC and NON-OPEC countries reached an agreement to cut oil production by 562,000 bpd as compared to the initial target of 600,000 bpd. This is a historical decision as it will help global economy and some organization for Economic Cooperation and Development to reach inflation targets. This production cut will help to stabilize the oil price and will build interest of the investors in the oil industry.
Ban on the India Cotton slowed down the cotton market
According to a recent report, the leading spinners remained on the sideline due to the ban on the Indian cotton. This ban is against the interest of local cotton market as the spinning industry is not able to buy cheap raw material.
According to a broker, the Indian cotton was benefiting the spinning industry in the Pakistan which is already going through the tough time. Consequently, the big spinners stay away from the trading ring and the market witnessed slow trading in general.
MCB and NIB merger approved
MCB is owned by the Nishat group. The Nishat Group is the biggest corporate giant in the Pakistan. The MCB share was traded at Dec 09, 2016 at Rs 232.83. Whereas the NIB bank share price is Rs1.66.
According to a notice sent to the Pakistan stock Exchange, the MCB and the NIB bank amalgamation happened through a share swap agreement. This news will affect the banking industry in next week as the investors will continue to show their interest in the MCB share due to its increasing portfolio.
After PTI, the people party chief Bilawal Bhutto is suspecting the role of the judiciary in the Panama papers. The Supreme Court has adjourned the hearing of the case till first week of January.
The Panama leaks case proceedings are creating lot of uncertainty in the stock market. This is the biggest corruption allegation against the sharif family since PM Nawaz sharif took oath as a Prime Minister of Pakistan.