The Pakistan Stock Exchange (PSX) surpassed the 75,000-point mark for the first time on Wednesday after MSCI, a global index provider, upgraded its status by adding a new company to its mainstream Frontier Market Index.
The benchmark KSE-100 Index hit a record high of 75,115 points, adding 0.78% or 584 points during early trade, surpassing Tuesday’s 74,531 points.
The market has maintained a record-breaking spree for the past six months. The latest surge, over 75,000 points, followed the MSCI decision to encourage foreign investors to increase stakes in PSX-listed companies, especially those in the MSCI Frontier Market and MSCI Pakistan Index.
However, the index failed to sustain the upward trend, wiping out almost all intra-day gains on profit selling. The benchmark index hovered at 74,594 points around 12:58 pm, reducing intra-day gains to 63 points (0.08%) from Tuesday’s close.
Speculative penny and tier II stocks attracted most trades during the day, including companies from the cement, telecom, food, energy, and technology sectors.
Topline Securities CEO Muhammad Sohail stated the Pakistani market crossed 75,000 points due to foreign fund buying.
During its semi-annual review, MSCI announced that it would add the National Bank of Pakistan (NBP) to its Frontier Index. This decision will increase Pakistan’s weight in the index, potentially attracting more passive foreign investment in PSX.
Foreign investors are increasing their holdings amid optimism that Pakistan will approach the IMF for a new loan program. This move aims to ensure continuity in repaying maturing foreign debt and create financial space to support economic growth.
On Tuesday, the State Bank of Pakistan (SBP) maintained its original forecast for economic growth, predicting a range of 2-3% for the fiscal year 2023-24, compared to a nominal negative growth last year.
