Pakistan stock market saw a negative week as Karachi stock exchange -100 index lost 282 points during the week.Delay in the upgradation of the local market by MSCI and decrease in the international oil prices were the two main reasons influencing the trading behavior of the investors at the Pakistan stock market.Foreign investors showed their considerable interest in the market as they bought net equity of $ 70 million during the week.This was 79.37 % increase in the foreign portfolio investment as compared to the last week.This shows a renewed interest of the foreign investors in the local market.
The market started the week positively as Karachi stock exchange -100 index rose by 203.4 points during first three days of the week.The market saw positive activity mainly due to favorable budget proposals for textile and fertilizer sector.The fluctuationsin the international oil price also played an important role in the surge of the Karachi stock exchange -100 index.The index nosedived 485 points in last two days of the week as international oil prices declined in last phase of trading week.
Karachi stock exchange -100 index started the week at 37223 points and ended the week at 36940 points.The average share trading volume showed a 36.37 % decrease as compared to the last week.The weekly share trading volume was 759 million shares as compared to the last week’s volume of 1193 million shares.
Best and worst Performers of the Week
Textile and Cement sector performed very well in first threedays of the week. Investors showed keen interest in these sectors and their major shares made considerable gains. But Karachi stock exchange 100-index nosedived on the last two days of the trading week and that overshadowed all the gains made by these shares infirst 3 days of the week.
The share prices of companies like Sapphire tex ,AttockCement and Sapphire fiber made considerable gains during the week.The share prices of the Sapphire Tex,Attock Cement and Sapphire fiber increased by 3.70 % , 0.63 % and 2.36 % respectively during the week.
Banking sector was worst performing sector of the week.The share prices of its top companies such as UBL,MCB and HBL declined during the week.This sector alone decreased the Karachi stock exchange -100 index by 160 points.
Market analysts are expecting a mix trading activity in upcoming week.The upgradation of the Pakistan stock market by the MSCI can play an important role in positively influencing the investing behavior of the stock traders.The fluctuations in the oil prices and political developments in the local political scene can influence the trading at the Pakistan stock market.Government should resolve panama leaksissue as soon as possible to provide smooth investing environmentfor the investors.
Short term and risk taking investors can earn short term gains by investing in the oil and gas sector.They can can take advantage of the fluctuations in the international oil prices .Long term investors should invest in the cement ,textile and fertilizer sectors. These sectors have very good long term potential and investors can reap long term benefits by investing in these sectors.The share prices of these sectors are expected to increase especially after favorable budget 2016-17 proposals for this sector.