PSX gains more than 600 points after MSCI review

• Index went as high as 48,898.82 points during intraday trade. 
• Market is up due to increase in MSCI index participants from Pakistan: analyst.
• Shares of 331 companies traded during the session.

KARACHI: Stocks at the Pakistan Stock Exchange (PSX) opened higher Friday after Morgan Stanley Capital International (MSCI) integrated 15 stocks into the Frontier Market Index.

The MSCI Frontier Markets Index captures large and mid-cap representation across 28 Frontier Markets (FM) countries. The index includes 99 constituents, covering about 85% of the free float-adjusted market capitalisation in each country.

The benchmark KSE-100 closed the day in the green by gaining 616.06 points or 1.29% to 48424.40 points. During the intraday trade, the index went as high as 48,898.82 points. 

In its quarterly review, 41 stocks found their place within the MSCI Frontier Markets Small Cap Index, with Pakistan's weight to ascend significantly — anticipated to rise from its current 0.6% to a more substantial 2.6% to 2.7%.

The report mentioned that there has been an inclusion to increase capital inflows from foreign investors — and foreign investment in the equity market rises to $22.8 million since the start of the fiscal year 2023-24.

"Market is up due to increase in MSCI index participants from Pakistan and increase in weight," Pakistan-Kuwait Investment Company Head of Research Samiullah Tariq told Geo.tv.

Shares of 331 companies were traded during the session. At the close of trading, 207 scrips closed in the green, 101 in the red, and 23 remained unchanged.

K-Electric Limited was the volume leader with 53.87 million shares traded, gaining Rs0.05 to close at Rs2.16. It was followed by Oil & Gas Development Company Limited with 22.57 million shares traded, gaining Rs2.86 to close at Rs103.47 and Lalpir Power Limited with 18.63 million shares traded, gaining Rs2.24 to close at Rs32.15.