KARACHI: Buoyed by speculation over Pakistan’s possible reclassification as an emerging market in the MSCI’s upcoming annual review, the benchmark-100 index stormed past the 35,000-point barrier with ease, ending 1.2% higher on Wednesday.
Despite trimmed gains, which saw the index retreat from the intra-day high of 35,441, the KSE-100 Index still managed a 420-point increase by close of trading. It ended at 35,317.56.
Elixir Securities, in its report, stated Pakistan equities soared past 35k and ended the day with solid gains on excitement from rumours related to MSCI upgrade.
“Market chatter led to speculation that Pakistan’s reclassification to MSCI Emerging is on cards much ahead of schedule, while we have a view that Pakistan stands a very strong chance of upgrade in the scheduled June review,” said analyst Faisal Bilwani
“Stocks opened positive, however, early attempts to test 35,000 met resistance as oils entered the negative territory tracking overnight losses in global crude.
“Frenzy in stock market followed emerging markets euphoria with institutions, retail investors and prop books reportedly buying aggressively with focus primarily on large caps,” said Bilwani.
“Turnover in wider market hit a fresh eight-month high while benchmark KSE-100 Index managed a close above 35,000; first since August last year,” he added.
Meanwhile, JS Global analyst Ahmed Saeed Khan said the bull run continued for the second consecutive day with optimism stemming from the upcoming MSCI review.
“Stocks that were included in the simulated re-composition of MSCI emerging market index like Habib Bank Limited (HBL +1.14%), United Bank Limited (UBL +1.10%) and Lucky Cement (LUCK +5.00%) were the major market movers today,” said Khan.
“Rally was witnessed in the cement sector as all major scrips closed comfortably in the green zone, top performer of the sector was LUCK that closed on its upper circuit,” he said. “The banks remained in the limelight after breaking a long spell of under-performance, with the underlying trigger being expectation of interest rate hike.
Trade volumes rose to 279 million shares compared with Tuesday’s tally of 197 million.
Shares of 386 companies were traded. At the end of the day, 218 stocks closed higher, 145 declined while 23 remained unchanged. The value of shares traded during the day was Rs17.2 billion.
Pakistan Telecommunication Company Limited (PTCL) XD was the volume leader with 23.7 million shares, gaining Rs0.09 to finish at Rs14.90. it was followed by TRG Pakistan Limited with 22.2 million shares, gaining Rs0.87 to close at Rs36.12 and Sui North Gas with 15 million shares, gaining Rs0.66 to close at Rs34.25.
Foreign institutional investors were net buyers of Rs730 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, May 5th, 2016.
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