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Karachi stock exchange-100 index rose by 674 points

Pakistan stock market saw a positive week as Karachi stock exchange-100 index rose by 674 points during the week.The recovery   in the international oil prices and stable interest rates were two most important factors affecting the buying behaviors of the investors in the Pakistan stock market.

The Karachi stock exchange-100 index started the week at 42324 points and ended the week at 42999  points.This is the highest level of the Karachi stock exchange-100 index in its history.The weekly share trading volume showed an increase of 3.6 % as compared to the last  week.The current week share trading volume was 2375 million shares as compared to the last week’s volume of 2293.1436 million shares.

The Pakistan stock market started the week on a positive note.The main reason was recovery made by the international oil prices.The international oil prices rose from $ 45.83 to $ 47.49 during the first day of the week.The Karachi stock exchange-100 index continued its upward surge and ended its journey at 42999 points.

Foreigners investors remained worried about the prospects of the Pakistan stock market.They were net sellers of $37 million during the week.The flight of capital was due to improvement in US equity markets and surge in the value of the US dollar.Foreign investors were mostly busy in emerging stock markets in the western countries.

Best and worst Sector of the week
Production sector,Cement sector and Oil sector were three best performers of the week.Oil sector grew by 0.8 % during the week.The heavy weight shares of this sector played an important role in the rise of the Pakistan stock market.POL,OGDC and PPL added 57 points in the Karachi stock exchange -100 index.

Cement sector grew by 3.5 % during the week. Attock cement and Best way cement were two best performing shares of this sector. Attock Cement and Best way cement  grew by 17.98 % and 15.74%.Production sector grew by 2.6 % during the week.

Banking sector was the worst performing sector of the week.The value of banking sector lost 2.4 % during the week.The stable discount policy will also affect this sector in upcoming days.

Future Outlook

Market analysts are quite upbeat about the future prospects of the stock market.The overall investor sentiment is very positive about the local stock market.The future market progress depends on the results of panama leaks case and also on the international oil prices.The Disqualification of the prime minister in Panama case can create uncertainty in the market

The Wednesday  OPEC meeting will decide the future of international oil prices.The oil sector is a very good investment for the short run.Stock traders can improve their short term returns by applying day trading strategies in oil sector stocks.

China has showed interest  to invest another $8.5 billion in energy ,rail and infrastructure related projects within Pakistan.This is a very good news for the investors interested in Cement and power sectors.These two sectors can be very good investment options for the long run.

 

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About Emaad Qureshi