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Weekly Review : Karachi stock exchange 100-index at its highest level

Pakistan stock market saw a mixed week as Karachi stock exchange -100 index fell by one point during the week.The stock market was many influenced by recovery in the oil prices and uncertainty in the local political scene.The market started the week with a mixed sentiment but recovered gradually in last few days of the trading week.The recovery was mostly influenced by the recovery in the international oil prices.

The Karachi stock exchange 100-index started the week at the 36693 points and ended the week at the 36694 points.The weekly share trading volume showed a decrease in the current week as compared to the last week.The weekly share trading volume was 1245 million shares in the current week as compared to the last week’s volume of  1625 million shares.It is 30 % decrease in the share trading volume as compared to the last week.Following are the major loser and gainer companies of the week.

Top 5 Gainers

Company   Rate Turnover*  
Open Close Diff High Low Avg.  
Rafhan Maize Products Ltd [92,364,000]   8,463.00 8,790.00 327.00 8,886.15 8,500.00 8,638.81 60  
Nestle Pakistan [453,496,000]   7,000.00 7,303.67 303.67 7,490.00 7,000.00 7,133.10 7,740  
Bata Pakistan Ltd [75,600,000]   3,622.50 3,697.50 75.00 3,700.00 3,620.00 3,653.33 80  
Island Textile Mills Ltd [5,000,000]   840.00 900.00 60.00 914.89 880.00 893.82 3,000  
Service Industries Ltd [120,288,000]   772.04 827.93 55.89 840.00 776.00 804.43 26,300  


Top 5 Losers

Company   Rate Turnover*  
Open Close Diff High Low Avg.  
Sunrays Textiles Mills Ltd [69,000,000]   360.95 294.01 -66.94 342.90 294.01 318.04 400  
Hino Pak Motors Ltd [124,006,000]   1,135.01 1,077.72 -57.29 1,150.00 1,063.00 1,104.87 60,900  
Pakistan Tobacco Co Ltd [2,554,938,000]   1,147.15 1,090.01 -57.14 1,165.25 1,050.00 1,110.67 3,320  
Bhanero Textile Mills Ltd [30,000,000]   725.00 675.00 -50.00 704.55 671.00 687.66 3,400  
Philip Morris (Pakistan) Limited [615,803,000]   1,658.75 1,613.10 -45.65 1,674.25 1,576.00 1,625.03 12  

Source : Business Recorder

Best Performers

Oil and gas sector performed very well at the Pakistan stock market during the week.Oil/gas sector stocks such as Sui Northern gas and Pakistan petroleum showed considerable increase in its prices.Sui Northern and Pakistan petroleum  share prices increased by 3.22 % and  0.28 % respectively.The share prices of the Pakistan petroleum increased after the news of the hydrocarbon discovery in different wells.Sui gas field has been leased to the E & p company for the next ten years as many future discoveries are expected.

Future Outlook

According to the market analysts,mixed trend is excepted at the Pakistan stock market in the next week.Investor’s trading behavior will be affected by different factors in the next week.The upcoming federal budget is the most important factor affecting the investor’s sentiment at the Pakistan stock market.Investors have different reservations over the budget as federal government is planning to impose different types of taxes on the citizens of Pakistan.According to the sources,government is planning to impose taxes of at least Rs 500 billion in federal budget 2016-17.

Market analysts believe that share volumes will remain low as investors are expecting different budget announcements next week.So it is expected that investors will mostly focus on the value investing.They will mostly focus on the energy and financial sector stocks in the next week.

Political developments in the local politics can also affect the trading sessions of the Pakistan stock market.The panama leaks issue is the most important political issue at the moment.Deadlock between the government and opposition is creating  uncertainty in the domestic political scene.The bad health of the prime minister is also creating confusions and uncertainty in the minds of the normal citizens.Government of Pakistan must act fast to solve this crisis as this matter can create constitutional crisis for the government in coming days.

International oil prices can also play an important role in influencing the Pakistan stock market.Investors should keep an eye on the oil/gas sector and also cement sector.The companies of these sectors have very high weightage at the Karachi stock exchange -100 index.Investors should adopt short term investing strategies while investing in these sectors.These sectors can provide short term gains as slight recovery in the oil prices in expected in the next week.


About Emaad Qureshi