Trading at the Pakistan Stock Exchange (PSX) experienced a volatile session on Tuesday, with the benchmark KSE-100 index losing 327.26 points to close at 40912.63 points as MSCI reclassification was witnessed earlier.

The market continued its downwards plunge today spurred by the news of PSX’s downgrade on the MSCI
reclassification.

The market opened in green but couldn’t maintain it as it gained intraday an high of just 78 points. After going down in the red zone the market touched the intraday low of -340 points in the last hour of trading today.

Morgan Stanley Capital International announced the results of the November 2017 Semi-Annual Index Review for the MSCI Equity Indexes. Within the MSCI Global Standard Indexes, MSCI has removed Engro Corporation (ENGRO) from the MSCI Pakistan Index; while there have been no additions.

ENGRO has been demoted to MSCI Global Small Cap Indexes, while Ferozsons Laboratories (FEROZ), Pak Suzuki Motors (PSMC) & Shell Pakistan (SHEL) have been removed.

Resultantly Engro went down to its lower cap price which down by -5% or – Rs. 14.37 from its opening which brought down 85.05 points from the index. Pak Suzuki Motors closed at Rs. 524.75 down by 2.44%.

All changes will be implemented form the close of Nov 30, 2017. As per calculations of all the analysts at brokerage houses, Pakistan’s weight in the MSCI Emerging Markets Index would drop to 0.08% after the removal of ENGRO from earlier weight of 0.14%.

Now 5 stocks (large & midcap) remain part of the standard MSCI EM Index; Oil & Gas Development Company (OGDC), Habib Bank (HBL), United Bank (UBL), Lucky Cement (LUCK), and MCB Bank (MCB). Amongst five MSCI EM stocks, highest weight is that of OGDC (based on free-float market cap), followed by HBL, MCB, UBL, and LUCK.

Most of the brokers predicted that Lucky Cement will be the one that will be reclassified but that didn’t happen.

To recall, MSCI announced reclassification of Pakistan from Frontier Market (FM) to Emerging Market on May 15, 2017 (effective date of June 1, 2017). However, since reclassification, Pakistan Market has fallen by 16% while MSCI EM (Asia) Index is up 12%.

All shares index had a traded volume 140 million shares today. Overall, stocks of 259 companies were traded on the exchange, of which 137 gained in value, 195 declined and 27 remained unchanged.  In KSE 100, just 57.4 million shares were traded with a net worth of just Rs. 4.58 billion.

Top traded sectors:

Azgard Nine was the volume leader 18.57 million shares, gaining Rs. 0.70 to close at Rs. 15.06. It was followed by Unity Foods(R) with 14.44 million shares, gaining Rs. 0.63 to close at Rs. 4.93, TRG Pak Ltd with 8.87 million shares, gaining Rs. 0.64 to close at Rs. 35.14 and K-Electric Ltd with 7.53 million shares losing Rs. 0.14 to close at Rs. 5.45.

Top Advancers of the market were:

Top Decliners of the market were:





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