PSX Surpasses 75,000 Points for First Time, Boosted by MSCI Upgrade

 PSX Surpasses 75,000 Points for First Time, Boosted by MSCI Upgrade

On Wednesday, the Pakistan Stock Exchange (PSX) achieved a significant milestone by surpassing the 75,000 points mark for the first time. This surge followed the announcement by the global index provider MSCI, which upgraded PSX’s 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, marking an increase of 0.78% or 584 points during early trading hours, surpassing the previous day’s high of 74,531 points. This record-breaking trend has been ongoing for the past six months. The recent climb beyond 75,000 points was driven by MSCI’s decision, which is expected to boost foreign investments in PSX-listed companies, especially those included in the MSCI Frontier Market and MSCI Pakistan Index.

Despite this early success, the index couldn’t maintain its upward trajectory, shedding nearly all intra-day gains due to profit-taking. By around 12:58 pm, the benchmark index was hovering at 74,594 points, reducing the intra-day gains to just 63 points (0.08%) from Tuesday’s close.

Speculative penny stocks and tier II stocks saw the highest trading volumes, with notable activity in the cement, telecom, food, energy, and technology sectors.

Muhammad Sohail, CEO of Topline Securities, attributed the new high of 75,000 points to foreign fund buying. MSCI’s semi-annual review included the National Bank of Pakistan (NBP) in its Frontier Index, enhancing Pakistan’s weight in the index. This inclusion is expected to attract more passive foreign investment to PSX.

Foreign investors have been increasing their holdings due to optimism surrounding Pakistan’s approach to the International Monetary Fund (IMF) for a new loan program. This program aims to ensure the country can continue repaying maturing foreign debt and create financial space to support economic growth.

On Tuesday, the State Bank of Pakistan (SBP) maintained its forecast for economic growth, predicting a growth rate of 2-3% for the fiscal year 2023-24. This comes after experiencing nominal negative growth in the previous year.

Also read: KPK Lawmakers Unite Against ‘Unconstitutional’ Caretaker Government’s Actions

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