Stock market gains 220 points amid mixed impact of MSCI review

KARACHI: The stock market gained 220 points on Friday after mixed trading activities to respond MSCI review.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 35,978 points as against 35,759 points showing an increase of +220 points.

Analysts at Arif Habib Limited said that the market on a positive note today with +20 points. The Index went uni-directional and gained 230 points by the end of first session, while reaching a high of +290 points, and finally closed the day with +220 points.

Following past couple of sessions, Cement and Steel continued trading in red and kept the index under pressure. MSCI review, announced last evening, proved to be a sigh of relief for institutional funds which were expecting an exclusion from the Index and resultant deluge of selling activity in outgoing stocks.

On the contrary, MSCI review proved largely to be a non-event, which gave confidence to investors in large cap Banks and E&P companies, particularly MCB, HBL, OGDC and PPL. Major activity (volume wise) was observed in PIAA, WTL, KEL and HUMNL.

Sector wise, most volumes were registered in Technology (43.5 million), followed by Cement (25.6 million) and Inv Banks (18.3 million).

Sectors contributing to the performance include Banks (+93 points), E&P (+64 points), Fertilizer (+47 points), Inv Banks (+31 points), O&GMCs (+13 points).

Volumes continued declining trend and went down from 265.9 million shares to 209.4 million shares (+21 percent DoD). Average traded value also declined by 19 percent to reach US$ 41.9 million as against US$ 51.6 million.

Stocks that contributed significantly to the volumes include WTL, HUMNL, KEL, PIAA and BOP, which formed 29 percent of total volumes.

Stocks that contributed positively include MCB (+33 points), UBL (+30 points), DAWH (+30 points), OGDC (+27 points) and ENGRO (+27 points). Stocks that contributed negatively include HUBC (-27 points), COLG (-13 points), DGKC (-10 points), PMPK (-8 points), and FCCL (-7 points).

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