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Karachi stock exchange-100 index rose by 1968 points after improvement in the Political environment

Pakistan stock market  saw a positive week as Karachi stock exchange-100 index rose by 1968 points during the week. Easing of the political tensions and interest of foreign investors in the local market helped market to stage a decent recovery .Foreign investors showed a special interest in the market as they bought net equity of  $ 21 million during the week.

Pakistan stock market started the week at a negative note as political temperature kept on rising in the country.  Karachi stock exchange 100-index lost 20 points on first trading day of the  week. The Pakistan stock market recovered after improvement in the local political environment. Karachi stock exchange 100-index  rose by 1406 points on the second day and continued its upward journey throughout the week. Positive actions by the supreme court on November 1 helped to solve the political crisis .The positive actions by Supreme court and PTI were welcomed by the national and international investors.Investors showed their interest in Cement,Auto and banking sectors.The stock market continued its upward movement and Karachi stock exchange 100-index rose by 1947 points in next four trading days of the week.

pakistan-stock-market

Source : Express Tribune

Karachi stock exchange-100 index started the week at 39872 points and ended the week at 41840 points.The weekly share trading volume rose 42 % as compared to trading volume of last week.The share trading volume was 2420 million shares as compared of last week’s share trading volume of 1705 million.

Best and Worst Performing Sectors

Cement sector,Auto sector and Banking sector were three top performing sectors of the week.Auto sector grew by 10 % and banking sector grew by 6 % during the week.Cement sector showed a good performance  as its  big players like Best way cement and Lucky cement made a great recovery during the week.

Future Outlook

Market analysts are expecting a very positive sentiment in upcoming days.Stable political environment and fluctuations in the international prices will play an important role in affecting the stock market.The announcement of the  expected  Chinese investment in the Iran-Pakistan pipeline has gave a positive signal to the investors. The upgradation of the Pakistan’s credit rating  was another positive news of the week.These two factors have really improved the investor’s confidence on the Pakistan’s stock market.

Political environment is improving and  this is sending positive signals to the investors. This will positively affect the Pakistan stock market in upcoming week.Supreme court is playing a very positive role and solution of panama scandal case will define the long term direction of the Pakistan.

Auto sector is a very good investment option for the long run.It is expected that auto sector will perform very well in the long run. Renault company has confirmed that its assembly plant will start its operations in next year.Renault is eleventh largest auto manufacturer in the world.This news has really improved the long term prospects of the Pakistan auto sector.

Oil and gas sector can be good investment option for the short run.Investors can maximize their return through adopting day trading strategies.The increasing doubts about the OPEC agreement to decrease production is really confusing the investors.It is giving a negative signal about the market and worsening the long term prospects of the oil based stocks.

 

 

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About Emaad Qureshi