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Top 5 News Affecting the Pakistan Stock Market

 

News directly affect the stock prices positively and negatively and determine whether the market will be bearish or bullish. Following are the news affecting stock prices this week:

Panama Case Uncertainty:

The political uncertainty continues as the nation awaits the verdict on Panama Case. The entire market is expected to fluctuate due to possible fear of final decision amongst other uncertainties.

SECP Files charges against broker:

SECP files charges against the regulator’s investigation revealed that the clients of Cedar Capital fraudulently induced the potential market investor to trade in PAEL by manipulating the price and volume of shares and creating an artificial market. The charges filed in court can help regain the confidence of buyers in regulatory bodies and proper auditing making them believe that Pakistan Stock Exchange is still a safe place to trade

Increased Fuel Prices:

The increased fuel prices will in turn result in increased stock prices of Oil and Energy companies in Stock Exchange. Now this would be a good time to earn short term gains by selling oil based stocks. Although the hike is of Rs 1, but on a commercial scale the ripple effect will be huge and investors have to take this news in consideration and should act accordingly.

Habib Bank eyes opportunity in CPEC:

 Habib bank opened its branch in Urumqi and finds huge opportunity in CPEC. It has a strategic management with growth leaders and investing in this company would not be for a loss. They are planning on opening more branches along the Belt Road which calls out for more people to trust in bank and the stock prices may go up in the future due to it’s smart moves and farsightedness.

Restructuring of PIA

 PIA plans to reclaim it’s former glory by restructuring the organization and building it on the blueprint of successful international organization to take it out of financial deficit. Investing in PIA’s stock would be a smart move before it’s prices start to go up. However, this might be a risky investment for some as promises are made often and profits depend on results i.e. PIA is actually able to turn their objectives in reality.

  1. FDI in Automobile Sector:

            Advancement and High performance in Pakistan’s automobile sector has attracted Foreign Direct Investment. The auto sector in Pakistan, so far dominated by Japanese assembly lines, is likely to expand significantly with the arrival of new entrants. The new entrants such as Renault from France, Volkswagen from Germany, FAW from China, KIA from South Korea and European are planning to invest in the market. Initiatives are taken by government to enhance the industrial base. Investing in this industry  will be an asset as stock prices are very likely to go up soon.

Wrapping it up:

            The overall market might face fluctuations due to the uncertainty in Panama Case verdict; however. From an investor’s view point – investing in profitable industries like oil and automobile and promising companies like HBL and maybe even PIA can pay off. The choice is yours now!

 

 

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About Emaad Qureshi