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Karachi stock exchange -100 index fell by 138.6 points

Pakistan stock market saw a mixed week as Karachi stock exchange -100 index fell by 138.6 points during the week.The instability in domestic political environment ,fluctuations in the oil prices and weak corporate earnings were three most important reasons affecting the Pakistan stock market.

Karachi stock exchange -100 index started the week at 39528 points and ended the week at 39390 points.The weekly share trading volume showed a  23 % increase as compared to the last week volume.The current week’s shares trading volume  of 1125 million shares  as compared to the last week’s volume of 914.34 million shares.

Foreign investors were largely confused about the market prospects.  They were net sellers throughout the week.They offloaded net equity of  $ 7.8 million during the week.This shows a decreasing confidence of the foreign investors on Pakistan stock market.

Pakistan stock market started the week at a positive note on the policy rate announcements by State Bank of Pakistan.The Karachi stock exchange -100 index rose by  271 points on the first day of the week.In last four days of the trading week, the index fell by 410 points.Weak corporate earnings and falling international prices mostly affected the trading behavior of the investors in these last four days.Oil price crossed below $ 40 mark first time in last 3 months.The investors showed least interest in the large shares traded at Karachi stock exchange -100 index.Following are the top 5 gainer and top 5 loser companies of at the Pakistan stock market.

Top 5 gainers of the week

Company Open High Low Close Avg. Volume Trades Change
Net / Pct
Rafhan Maize 7,260.00 7,600.00 7,484.00 7,499.99 7,500.73 2,260 34 240.00 [3.31 %] 
Nestle Pakistan 7,400.01 7,500.00 7,500.00 7,500.00 7,500.00 220 3 99.99 [1.35 %] 
Island Tex. 897.75 942.63 942.63 942.63 942.63 100 2 44.88 [5.00 %] 
Colgate Palmolive 1,479.98 1,500.00 1,450.00 1,499.00 1,496.25 1,280 9 19.02 [1.29 %] 
Shezan Int. 406.00 425.00 415.00 424.00 421.00 600 6 18.00 [4.43 %]

Top 5 losers of the week

Company Open High Low Close Avg. Volume Trades Change
Net / Pct
Philip Morris Ltd 1,620.00 1,539.05 1,539.05 1,539.05 1,539.05 20 1 -80.95 [-5.00 %] 
Feroze 1888 285.01 271.00 270.76 270.76 270.88 1,000 8 -14.25 [-5.00 %] 
Ferozsons Lab. 1,041.62 1,040.00 1,030.05 1,031.99 1,033.10 2,900 27 -11.57 [-1.11 %] 
Sapphire Fib. 536.76 526.00 526.00 526.00 526.00 100 2 -10.76 [-2.00 %] 
AL- Abbas Sug. 268.00 258.05 258.00 258.00 258.01 500 2 -10.00 [-3.73 %]

Source : KHI Stocks

Best and Worst Performers 

Auto and Sugar sector were best performing sectors at Pakistan stock market.If we talk about the sugar sector,Mirpur khas sugar,Mehran sugar and chasma sugar were  its  three best performing stocks.The share prices of Mirpur khas sugar,Mehran sugar and chasma sugar rose by 20.06 %,12.83 % and 11.26 %respectively .The progress of the sugar sector was largely helped by the increase in its per kg price in the market.

If we talk about the auto sector,Atlas battery, Pak-suzuki motors and  Millat tractors were  its  three best performing stocks.The share prices of Atlas battery, Pak-suzuki motors and  Millat tractors rose by 8.56 % ,7.79 % and  1.37 % respectively.The progress of the auto sector was helped by the  news of increase in car prices in the market.

Oil sector was the worst performing sector of the week.This sector was badly affected by the fluctuations in the international oil prices.

Future Outlook

Market analysts are upbeat about the future of the Pakistan stock market.The most important reason for the optimism is the upcoming corporate earnings. The announcement by IMF to release  last installment of its $ 6.4 billion program gave a positive signal to the investors.The domestic political environment and volatile situation in the international oil market can also affect the trading behaviors of the investors.

PTI has announced to start its street protest movement for accountability of the prime Minister.This street movement can really affect the investor’s confidence in upcoming days.It all started with the Panama leaks in April 2016.Pakistani government’s inability to address the situation has really made difficult for the opposition to keep silent.

Short term and long term investors should adopt a buy and hold investment strategy in this unstable situation. Cement sector is best sector for short and long term investment .It will help them to reap benefits from their investments.

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About Emaad Qureshi