KARACHI: Positivity over the upcoming MSCI review and Pakistan’s reclassification as an emerging market generated positive sentiments in the bourse as the KSE-100 Index – a benchmark for market performance – soared over 1,000 points on Monday.
Stocks that are top constituents in MSCI Pakistan Index led the gains. The MSCI Pakistan Index is designed to measure the performance of the large and mid cap segments of the Pakistan market. With 16 constituents, the index covers approximately 85% of the Pakistan equity universe.
At close, the Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share Index recorded a rise of 1,084.78 points, or 2.18%, to end at 50,935.91.
According to JS Research’s analyst Arhum Ghous, optimism was driven on account of investor interest accumulating in potential MSCI EM stocks.
“Hefty buying was witnessed in the market throughout the day, which helped market to close comfortably above 50,000 level,” he said.
“Major index movers were HBL (+5%), UBL (+5%), MCB (+5%), Oil and Gas Development Company (+4.25%) and Lucky Cement Limited (+2.43%) as they cumulatively contributed +552 points to the index.
“Overall, rally was witnessed in the banking sector where big banks boosted the index to close in green. Meanwhile, exploration and production sector gained to close (+3.3%) higher than its previous day close where Pakistan Oil Fields (+3.30%) and Pakistan Petroleum Limited (+2.43%) were the major gainers of the sector.
“Growth was also witnessed in the steel sector with Inter Steel Limited (+4.83%) and Aisha Steel Mills (4.98%) closing in green,” he added.
Meanwhile, according to Elixir Securities, equities broke the all-time high as renewed institutional buying on euphoria over inclusion of Pakistan in the MSCI EM Index led benchmark KSE100 Index.
“The market opened gap up as stocks carried momentum into the new week and sustained gains throughout the day with key candidates for MSCI Pakistan Index leading the charge,” said analyst Ali Raza.
“HBL (+5%), UBL (+5%) and MCB (+5%) were the top three gainers who along with Oil and Gas Development Company (+4.3%), Lucky Cements (+2.43%) and Engro Corp (+2.4%) jointly contributed over 55% points to the index’s gains on aggressive institutional buying,” he added.
Overall, trading volumes rose to 326 million shares compared with Friday’s tally of 308 million.
Shares of 411 companies were traded. At the end of the day, 262 stocks closed higher and 129 declined while 20 remained unchanged. The value of shares traded during the day was Rs20.8 billion.
Engro Polymer was the volume leader with 34.9 million shares, gaining Rs0.02 to close at Rs30.92. It was followed by Bank of Punjab with 18.3 million shares, gaining Rs0.34 to close at Rs14.1 and Aisha Steel Mill with 17.4 million shares, gaining Rs1.16 to close at Rs24.44.
Foreign institutional investors were net buyers of Rs347 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.