Pakistan Stocks Exchange (PSX) Tuesday touched a record high as the investors’ expectations rose because of the perceived inclusion of the country’s stock market in the MSCI’s emerging market index from Wednesday, the dealers said.
The benchmark 100-share index of the PSX closed up 537.79 points, or 1.45 per cent, at 37,517.75.
The analysts said that the index posted its best single-day percentage gain since May 5.
“The stock exchange rose today due to the expectation of the up-gradation of Pakistan into emerging markets which will be announced in less than a day,” said Manager Equity Sales at Topline Securities (Pvt) Ltd Hammad Aman.
Pakistan was excluded from the emerging markets index and classified as a higher-risk frontier market after the Karachi Stock Exchange was temporarily closed in late 2008 to prevent investors from withdrawing funds.
The exchange applied for inclusion two years ago, gaining review status last year.
Volumes increased by three per cent to 143.6 million shares while value rose 28 per cent to Rs 9.6 billion /$91.6 million. K-Electric (KEL) and Pakistan International Bulk Terminal (PIBTL) were volume leaders with 38 million shares traded in total.
Banking stocks increased for a second consecutive day today. Habib Bank (HBL) closed at its upper limit five per cent while MCB Bank (MCB) and United Bank (UBL) increased 3.9 per cent and 2.2 per cent, respectively.
Select index heavyweights stocks like Fauji Fertilizer (FFC), Hub Power Company (HUBC) and Lucky Cement gained 2.3-3.9 per cent today. Cumulatively, these stocks added 135 points to the benchmark index.
“The 9 proposed stocks in the large capitalization and mid tier category of MSCI Emerging Market Index led the rally, where HBL (4.6 per cent) and LUCKY (3.9 per cent) both gained to close in the green zone,” said JS securities analyst.
HCAR 3.3 per cent and INDU 0.4 per cent gained to close in the green zone on the back of one-time tax imposed on imported vehicles above 1300cc engine capacity by Punjab Government in its2016-17 budget announcement yesterday.
