Karachi:
The PSX reached a new high of 75,000 points on Wednesday, thanks to MSCIs recognition of PSX as a frontier market and the addition of a new company to its main index.
The KSE-100 Index hit a new record high of 75,115 points, increasing by 584 points or 0.78% in the morning, surpassing the previous record of 74,531 points it reached on Tuesday.
The market has been on a remarkable upward trend for the past six months. Following the MSCI decision, the PSX-listed companies saw a significant increase in their investments, reaching over 75,000 points. This decision is anticipated to attract more foreign investors, especially those involved in the MSCI Frontier Market and MSCI Pakistan Index.
However, the index did not continue to rise and almost reversed its daily progress because investors were selling off their shares. Around 12:58 pm, the benchmark index had reached 74,594 points, resulting in a decrease of 63 points (0.08%) from the previous day’s closing price.
Stocks in speculative penny and tier II categories experienced the highest trading volume, especially in sectors like cement, telecom, food, energy, and technology.
The CEO of Topline Securities, Muhammad Sohail, stated that the recent surge in the Pakistani market value to 75,000 points was primarily due to the influx of foreign funds.
MSCIs semi-annual review added the National Bank of Pakistan (NBP) to its Frontier Index, which will make Pakistan a bigger part of the index and draw more passive foreign investment to the Pakistan Stock Exchange.