Equities rallied Tuesday to hit a new record. The benchmark KSE1-00 index rose by 538 points or 1.45 percent to 37,518 points under the lead of heavyweights. Analysts attributed the day's bull-run to Pakistan's much-anticipated inclusion in the emerging market index by the global index provider, Morgan Stanley Capital International (MSCI).
"Stocks closed all-time high on investor speculations ahead of MSCI reclassification decision on PSX tonight," said Ahsan Mehanti of Arif Habib Corp. Topline analysts said the rally at local bourse ensued as anticipation of Pakistan's up-gradation to MSCI Emerging Markets gathered pace.
The much-awaited MSCI reclassification decision, according to Arhum Ghous of JS Research, is due by 5pm, Eastern Day Light Saving Time. "The nine proposed stocks in the large capitalisation and mid tier category of MSCI Emerging Market Index led the rally," the analyst said. Prominent among them, she said, were HBL and LUCK with 4.6 and 3.9 percent gains.
Trading turnover grew three percent to 143 million shares the value of which appreciated 28 percent to Rs 9.58 billion. Of the 331 scrips traded, 202 rose, 109 declined and 20 stayed unchanged. The market capitalisation ended upward at Rs 7.5 trillion compared to Rs 7.41 trillion. Foreign inflows marked net selling of $480,753. K-Electric kept dominating volumes with 27 million turnover. Other most-traded issues were PIBT, Engro Fertilizer, SNGPL, TRG Pakistan, Pak Electron, Dewan Motors, Habib Bank, OGDCL and PTCL.
Besides investor speculation, analyst Mehanti said, oil, fertilisers and banking stocks led the rally ignoring foreign outflows, slump in global equities and crude prices. Banking stocks rallied for the second consecutive day with HBL rising to its upper limit (five percent) and MCB Bank and United Bank gained 3.9 and 2.2 percent.
HCAR, up 3.3 percent, and INDU, up 0.4 percent, gained to close in the green zone on the back of what analyst Arhum said one-time tax imposed on imported vehicles above 1300cc engine capacity by Punjab Government in its FY17 budget announcement. Investor interest was seen in the fertilizer sector as Punjab Government in its budget announcement allocated Rs 100 billion under the Khadim-e-Punjab Kissan package to address the issues of farmer community and food security over the course of two years. Trade on futures market slid to 24 million contracts from the previous 26 million.
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