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Karachi stock exchange-100 index lost 1387 points after Brexit Referendum

Pakistan stock market saw a volatile week as Karachi stock exchange-100 index lost 1387 points during the week.The investors took a backseat as Post-Brexit scenario created an instability in globalstock markets .The excessive profit taking by the investors and Brexit referendum results were two main reasons for dismal performance of the Pakistan stock market.Post Brexit scenario influenced the investing behavior of both local and foreign investors. Foreign portfolio investors were net sellers as they offloaded net equities of $ 20.56 million during the week.

Pakistan stock market started the week at a negative note as Karachi stock exchange-100 index fell 307 points on the first day of the week.The excessive profit taking was the main reason for the sudden fall of the market on that day.The negative trend at the Pakistan stock market continued throughout the week.The biggest loss occurred on the last day of the trading week as Karachi stock exchange-100 index fell by 848 points on that day. Brexit referendum results caused the downfall of the index on that day.

Pakistan stock market

Karachi stock exchange-100 index started the week at 38776 points and ended the week at 37390 points.The weekly share trading volume showed 15.12 % decrease as compared to the last week. The shares trading volume was 778.40 million shares this week as compared to the shares volume of last week’s 917.089 million.Following are the major gainer and loser companies of the week.

Top 5Gainers
Company Rate Turnover*
Open Close Diff High Low Avg.
Unilever Pakistan Food Limited [61,576,000] 5,213.00 5,339.00 126.00 5,470.00 5,000.01 5,232.13 100
Pakistan Tobacco Co Ltd [2,554,938,000] 1,041.00 1,148.90 107.90 1,148.90 1,000.23 1,081.81 840
Siemens (Pakistan) Engineering Co Ltd [82,470,000] 890.00 947.60 57.60 950.00 872.00 905.45 2,900
Bata Pakistan Ltd [75,600,000] 3,600.00 3,650.00 50.00 3,700.10 3,650.00 3,690.22 2,740
Nestle Pakistan [453,496,000] 7,300.00 7,350.00 50.00 7,550.00 7,300.00 7,378.34 100
Top 5Losers
Company Rate Turnover*
Open Close Diff High Low Avg.
Rafhan Maize Products Ltd [92,364,000] 8,920.74 8,170.00 -750.74 8,835.24 8,170.00 8,423.61 200
Wyeth Pakistan Ltd [142,161,000] 2,100.00 1,943.75 -156.25 1,995.00 1,943.75 1,995.00 160
Hino Pak Motors Ltd [124,006,000] 1,082.87 959.56 -123.31 1,095.00 951.00 1,000.44 40,500
Lucky Cement Ltd [3,233,750,000] 663.19 625.37 -37.82 664.99 605.00 642.12 1,863,400
Mari Petroleum Company Limited [1,102,500,000] 915.54 878.85 -36.69 939.90 874.46 916.88 951,300

Best and worst Performers of the week

Tobacco and refinery sectors were best performers of the week at Pakistan stock market.The prices of their main shares increased with a decent rate during the week.The share prices of main companies of the Tobacco sector such as Phillip Morris and Pakistan Tobacco increased by 1.67 % and 10.36 % respectively as compared to the last week.The share prices of main companies of the Refinery sector such as National refinery and Attock refinery increased by 9.50 % and 1.36 % respectively as compared to the last week.

Banking and Oil/Gas sectors were the worst performers of the week.Karachi stock exchange 100 index lost 270 points mainly due to these two sectors.These two sectors were affected by the Post-Brexit scenario.The oil and gas sector is expected to remain in red zone due to post-Brexit scenario.The share prices of main companies of Banking sector such as MCB and HBL decreased by 10.97 % and 5.43 % respectively as compared to the last week.The share prices of the main companies of Oil/Gas sector such as Mari Petroleum and OGDC decreased by 4.18 % and 5.00 % respectively as compared to the last week.

Future Outlook

Market analysts are expecting a mixed trading sentiment in the next week.But most of the experts are optimistic about the long term future of the market.The strong market fundamentals and MSCI inclusion of Pakistan stock exchange are two most important reasons for their optimism.The believe that market will bounce back in next few weeks.The instability in the foreign stock markets and international oil market can affect the trading in upcoming days.

The instability in the domestic political environment is also posing a serious threat for the progress of the Pakistan stock market. PTI is planning to file a petition in the election commission and Supreme for the Dis-qualification of the Prime Minister. This action will create further instability in the country. PML-N government should take lead and solve this political issue as soon as possible.

 

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About Emaad Qureshi