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Karachi stock exchange -100 index climbed 876 points amid improving oil prices

Stock market saw a positive week as Karachi stock exchange -100 index climbed 876 points during the week.Domestic investors showed considerable interest in the local market.They heavily invested in energy and cement sectors. Foreign investors remained net sellers in this week just like last week.Foreign investors sold net equity of  $ 7 million as compared to last week’s $ 1.0 million.The 15 % rise in the foreign remittances also played an important role in affecting the domestic stock market during the week.

The Karachi stock exchange -100 index started the week at 39464 points and ended the week 40340 points.The weekly share trading volume showed a 23 % increase as compared to the last week’s share trading volume.The weekly share trading volume was 2285 million shares as compared last week’s volume of 1950 million shares.

stock-market

The stock market started the week with a negative sentiment as there were no positive triggers in the market.The Karachi stock exchange -100 index lost 186 points on the first day of the week mainly due to lack of any trigger in the market.The stock market recovered in next four  days of the trading week.Karachi stock exchange -100 index gained 1072 points during the last 4 days of the trading week.

The market activity was mainly influenced by recovery in international oil market and improvement in demand of the local cement sector.

Following are the top 5 major gainer and loser companies of the week

Top 5 Gainers

Company Open High Low Close Avg. Volume Trades Change
Net / Pct
Rafhan Maize 7,322.00 7,599.00 7,450.00 7,599.00 7,544.89 200 4 277.00 [3.78 %] 
Nestle Pakistan 7,400.00 7,600.10 7,425.00 7,600.00 7,591.35 1,560 32 200.00 [2.70 %] 
Bata (Pak) 4,000.05 4,100.00 4,100.00 4,100.00 4,100.00 20 1 99.95 [2.50 %] 
Unilever Pak Food 5,209.03 5,300.00 5,300.00 5,300.00 5,300.00 20 1 90.97 [1.75 %] 
Colgate Palmolive 1,480.00 1,540.00 1,540.00 1,540.00 1,540.00 800 1 60.00 [4.05 %]

Top 5 losers

Company Open High Low Close Avg. Volume Trades Change
Net / Pct
Pak Tobacco 1,059.50 1,043.50 1,030.00 1,030.00 1,033.49 440 21 -29.50 [-2.78 %] 
Siemens Engg. 862.84 870.00 842.00 842.00 855.44 800 8 -20.84 [-2.42 %] 
Mithchells 383.27 397.00 370.00 372.20 382.69 11,200 76 -11.07 [-2.89 %] 
Ghandhara Ind 695.85 714.00 680.00 685.53 697.82 158,100 814 -10.32 [-1.48 %] 
AKZO Nobel 249.26 251.98 241.01 242.64 245.94 574,400 1,127 -6.62 [-2.66 %]

Best and Worst Performers

The Energy and cement sectors were the best performing sectors of the week.The increase in the demand in both sectors helped Karachi stock exchange-10 index to climb up 876 points during the week.

The international oil prices increased from $ 43 per barrel to $ 47 per barrel during the week.All Pakistan manufacturing association released data for the sales of august 2016. The cement sales in August 2016 were 3.585 million tons and they were 16.75% more than sales of  3.071 million tons during the August 2015 .The domestic cement sales were 3.028 million tons and international cement sales were 0.557 million tons in the august 2016.

Future Outlook

Market analysts are expecting a mixed week in the upcoming days.The share trading volume will also at minimum level due to shortened trading week.The local political environment and fluctuations in the  oil prices will affect the trading activities in the upcoming week.

PTI  has made it clear that it will continue pursuing anti-corruption policies in upcoming days.They are planning two come harder on the PMLN-N government.They also threatened to march towards Raiwind and that move will create political instability in the country. PML-N government must engage all the stakeholders to solve the Panama leaks issue.The rising political temperature can affect the stock market activity in the near future.

The demand increase of the oil has helped the energy based stocks trading in the domestic stock market.The further increase in the international oil prices can really push the momentum of the stock market.Other than that cement sector can also play an important role in affecting the momentum of the stock market.The consistent performance of the cement sector has attracted investment from domestic and foreign investors in last one year.

 

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About Emaad Qureshi