Contrary to expectations of a booming rise of the KSE 100 Index after its reclassification to emerging market, the PSX bench mark succumbed to the selling and profit taking pressure plunging by 574 points here on Tuesday.
It may be noted that Pakistan Stock Exchange (PSX) was upgraded to the Emerging Markets status Tuesday morning, with investors looking to adjust their holdings specially the investors having their positions in heavy stocks, the index fell by 574 points to close in red at 51813 levels. It may be noted that after reclassification 33 companies were added to the MSCI Pakistan Index
Amid an impressive market volume of 377 million shares with a brisk trading activity in shares of over 397 companies Engro Polymer was on top in terms of volumes with a trade of 42 million shares to its credit their stocks was closed 0.41 plus at Rs 31.48. The other two volume leaders of the day were including Dost Steel with a trade of over 41 million shares and Dewan Farooq Motor with a trade of 20 million shares. The stock was closed at 54.60 with a gain of Rs.2,60.
The financial sector of the country in line with the rising economy was well geared for a sustainable bull cycle. Major economic indicators such as pick up in LSM growth, increased disposable income and government spending on infrastructure projects all point towards higher sustainable growth in the country. A new wave of expansionary cycle is already underway and is likely to trigger a huge demand for credit. Consumer financing is also likely to pick amid improved economic indicators and increase in discretionary income.
Meanwhile the international oil prices continued to rise after top oil producers agreed to extend cuts until the end of March 2018 in order to support oil prices. However, experts believe that OPEC members who are exempted from the cuts will increase their oil production and this could largely offset the benefits of the extended cuts.