ISLAMABAD: The Pakistan Stock Exchange (PSX) experienced a robust opening on Friday, propelled by the integration of 15 stocks into the Morgan Stanley Capital International (MSCI) Frontier Market Index. The MSCI Frontier Markets Index encompasses significant large and mid-cap representation across 28 Frontier Markets countries, encompassing 99 constituents that collectively cover approximately 85% of the free float-adjusted market capitalization in each nation.
The benchmark KSE-100 index showcased strong performance throughout the trading day, concluding with a gain of 616.06 points or 1.29%, closing at 48,424.40 points. At its peak during intraday trading, the index reached an impressive 48,898.82 points.
The quarterly review by MSCI led to the inclusion of 41 stocks in the MSCI Frontier Markets Small Cap Index, signifying a notable surge in Pakistan’s weight within the index. This weight is anticipated to escalate substantially, potentially rising from its current level of 0.6% to a more significant range of 2.6% to 2.7%.
The report highlighted the potential for increased capital inflows from foreign investors as a result of this inclusion. Notably, foreign investment in the Pakistani equity market has already risen to $22.8 million since the commencement of the fiscal year 2023-24.
Upward Momentum in Pakistan Stock Exchange
Samiullah Tariq, Head of Research at Pakistan-Kuwait Investment Company, attributed the market’s upward momentum to the heightened participation of Pakistani entities in the MSCI index and the resulting increase in weight.
Trading activity during the session encompassed shares from 331 companies. As the trading day concluded, 207 scrips registered gains, 101 reported losses, and 23 remained unchanged.
Leading the volume of shares traded was K-Electric Limited, with a transaction volume of 53.87 million shares. The company’s shares gained Rs0.05 to reach a closing price of Rs2.16. Following closely were Oil & Gas Development Company Limited, trading 22.57 million shares and gaining Rs2.86 to close at Rs103.47, and Lalpir Power Limited, which traded 18.63 million shares and achieved a gain of Rs2.24 to conclude at Rs32.15.
