With all eyes on Pakistan's likely upgradation to MSCI emerging market status, Monday saw the volatile equities settling in the green. Moving both ways in the intraday trade, the benchmark KSE-100 index ended 39 points higher at 36,980 compared to 36,941 of Friday last week. "Stock showed recovery amidst turmoil in global equities and crude prices," viewed analyst Ahsan Mehanti at Arif Habib Corp.
Ahmed Saeed Khan of JS Research said the day's major index mover was oil sector which remained under pressure amid global crude oil prices falling nearly three percent over the weekend as US stockpiles continue to rise. Index heavyweight OGDC appeared as a top laggard with 1.19 percent decline. Trading turnover surged to 139 million shares the value of which also appreciated to Rs 7.5 billion from Rs 7.0 billion. "Oversold banking stocks supported the index to close above session lows," said Mehanti adding that foreign outflows and subdued auto sales data for May'16 weakened the sentiments.
Speculations ahead of likely MSCI upgrade on PSX stocks played a catalyst role for positive close, he said. Khan said marginal positivity was witnessed in the scrips that are expected to form part of MSCI Emerging market index. MCB and HBL gained 1.76 and 1.15 percent. With market capital accumulating to Rs 7.4 trillion, the foreign portfolio investment marked net buying of $451,362.
K-Electric led the day's volumes with 36 million shares trading, each priced at Rs 8.01 at close. Other best performing stocks were Engro fertiliser, TRG Pakistan, PIBT, Fauji Cement, Dewan Motors, PTCL, SNGPL, Bank of Punjab and JSCL. Futures trade rose to 26 million contracts from 22 million. "Moving forward, we expect the market to have a positive correlation with MSCI reclassification," said analyst Khan. The decision of international index provide, he said, would predominantly decide the direction of the market over the next couple of days.
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