PSX continues bearish trend; KSE-100 Index losses 599 points
PSX continues bearish trend; KSE-100 Index losses 599 points

KARACHI: The Pakistan bourse tumbled 1.29 per cent on Friday after MSCI reclassified Pakistan to the Frontier Markets from the Emerging Markets with a lower-than-expected weightage, dealers said.

Ahsan Mehanti at Arif Habib Corporation said that the stocks closed lower in the post-earnings season on global equities selloff and slump in the global crude oil prices.

“[The] rupee record a fall against USD, uncertainty over Pak-IMF resolve for resumption of IMF programme and concerns over lower weightage in the MSCI FM index played a catalytic role in [the] bearish close.”

The Pakistan Stock Exchange KSE-100 shares index shed 1.29 per cent, or 599.03 points, to close at 45,749.15 points. The KSE-30 shares index shed 1.42 per cent, or 255.53 points, to close at 17,725.86 points.

As many as 345 scrips were active, of which 92 advanced, 236 declined and 17 remained unchanged. The ready market volumes stood at 192.46 million shares, compared with the turnover of 269.5 million shares in the last trading session.

An analyst at Topline Securities said the KSE-100 index extended its decline to close at 45,749 points, down 1.3 per cent.

“This decline in [the] market can be attributed to MSCI announcement, where it notified Pakistan weight in MSCI Frontier Markets will be 1.25 per cent, compared with the earlier simulated weight of 1.9 per cent and three Pakistani securities will be added to the MSCI Frontier Markets Index, compared with the earlier simulated four constituents where OGDC was the fourth constituent.”

Going forward, analysts expect the market to move both ways, amid persisting pressure on the currency and uncertainty on the political front.

The companies, which reflected the highest gains included Unilever Foods, up Rs1,080 to close at Rs19,479/share; and Sapphire Textile, up Rs70 to close at Rs1,300/share.

The companies that reflected the most losses included Colgate Palmolive, down Rs137.49 to close at Rs2,431.01/share; and Ismail Industries, down Rs37.85 to close at Rs467.15/share.

The highest volumes were witnessed in Unity Foods with a turnover of 14.88 million shares. The scrip gained 83 paisas to close at Rs29/share; followed by Ghani Global with a turnover of 14.54 million shares. It gained 90 paisas to close at Rs33.09/share. Byco Petroleum remained the third with a turnover of 9.29 million shares. It shed 10 paisas to finish at Rs7.

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