Equities rallied by 1,042 points or 2.78 percent Wednesday after the MSCI reclassified Pakistan as the world's emerging stock markets. The bull-run saw the benchmark KSE-100 rising to all-time high of 38,560 points compared to 37,518 of Tuesday. Trading volumes ended higher at 244 million shares the value of which appreciated to Rs 19 billion.
Of the 348 scrips traded, 204 posted gains, 120 lost their worth and 24 remained unchanged. The market capital accumulated to Rs 7.66 trillion as foreign portfolio investment marked a net buying of $2.72 million. K-Electric led volumes with 44 million shares trading each sliding to Rs 8.23 at close. Other best performing issues were PIBT, Engro Fertiliser, Fauji Cement, DG Khan Cement, Dewan Cement, TRG Pakistan, Pak Elektron, Hum Network and OGDCL.
Futures trade also ended upward at 40 million contracts. "The MSCI announced its annual market classification earlier today... which led the local index to storm pass its previous high and set a new level," said Hammad Aman, Manager Equity Sales at Topline Securities. Analyst Ahsan Mehanti of Arif Habib Corp said PSX closed on new highs after MSCI decision to upgrade Pakistan to emerging market status.
He said record bullish close witnessed at PSX led by MSCI EM provisional stocks in banking, oil, fertiliser and cement sectors. "Investor speculations on likely foreign inflows on MSCI reclassification played a catalytic role in the bullish close," said the analyst. Aman observed that the 1,042 points rally was the highest-ever since March 2015 where it gained over 1,300 points. Heavy interest was observed by both local and foreign investors especially in nine companies which are to be part of MSCI EM: OGDC, HBL, UBL, MCB, HUBC, FFC, ENGRO, PSO and LUCK along with 18 other stocks entering MSCI IMI index.
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