PSX hits record high as investors chase MSCI picks

Stocks surged 1.4 percent to a record close on Wednesday as investors targeted those stocks that are included in MSCI's emerging market index, dealers said.

Analyst Ali Raza at Elixir Securities said equities closed at a new all-time high helped by institutional buying ahead of Morgan Stanley Capital International (MSCI) transition.

US Index provider MSCI reclassified Pakistan as an emerging market from frontier market status and added six securities in its main board and 27 shares in small-cap index, effective June 1.

Volumes, as expected, mainly remained in mid- and small-caps with stocks Lotte Chemical, Power Cement and K-Electric driving the turnover.

The Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share Index closed up 1.4 percent or 729.49 points to 52,876.46 points. The highest index of the day remained at 53,103.05 points, while the lowest level of the day was recorded at 52,146.97 points. KSE 30-share Index also ended up 1.62 percent or 450.39 points to 28,172.76 points.

Turnover rose 283 million shares to 606.69 million shares. Trading value increased to Rs23.69 billion from Rs19.62 billion and market capital was up to Rs10.44 trillion from Rs10.32 trillion. Of 420 companies active, 188 closed up, 215 ended down and 17 remained unchanged.

“We see ongoing bullish momentum to continue with institutional flows primarily from foreign investors in the Index names pushing the benchmark KSE 100 Index to new highs above 53,000 before the MSCI transition day,” Raza said.

The market opened gap up with MSCI Emerging Markets’ constituents leading gains and pushed the benchmark 100-share Index above 53,000 intra-day.

Energy sector contributed most to the gains on buying interest from institutional investors where higher global crude prices also lifted sentiments. Oil and Gas Development Company closed up 3.6 percent for the second consecutive session and contributed most to day’s gains, while Pakistan Petroleum Limited stood next in line and closing highest (4.6 percent) in the last four months.

Financial sector also remained in limelight as notable index names, including Habib Bank Limited (up 1.2 percent), United Bank Limited (rising 1.1 percent) and MCB Bank Limited (increasing 2.1 percent) closed with handsome gains.

Highest increase was recorded in Wyeth Pak Ltd XD by Rs126.95 to close at Rs2,666/share, followed by Exide (Pak) that was up Rs46.51 to end at Rs1,096.46/share. Major decrease was noted in Sapphire Fiber XD by Rs37.50 to end at Rs1,150/share, followed by Pak Int Cont that was down Rs20.34 to close at Rs386.65/share.

Significant turnover was recorded in stocks of Power Cement (R), Bank of Punjab (R), Lotte Chemical, Power Cement, K-Electric Ltd, Aisha Steel (R), Bank of Punjab, WorldCall Telecom, TRG Pak Ltd and Engro Fertilizers Ltd.

Power Cement (R) remained the volume leader with 124.76 million shares with an increase of 60 paisas to close at Rs2.30/share, followed by Bank of Punjab (R) with 90.94 million shares with an increase of 37 paisas to end at Rs1.87/share.

Turnover in the future contracts fell to 117.26 million shares from 119.28 million shares traded in the previous session.