The Pakistan Stock Exchange’s benchmark KSE-100 index experienced a significant gain of over 600 points on Friday. Market experts attribute this surge to the inclusion of 15 additional Pakistani-listed companies in Morgan Stanley Capital International’s (MSCI) main Frontier Market index.
The benchmark KSE-100 index closed at 48,424.40 points, registering a gain of 616.06 points or 1.29 percent.
This increase in Pakistan’s weight within the MSCI FM index, from 0.6 percent to 2.6 percent, means that foreign investors now have access to a wide range of Pakistani stocks for investment, according to market analyst Naqvi.
In addition, the power sector experienced positive developments as investors anticipated the announcement of good dividends and payouts. The International Monetary Fund (IMF)’s approval of the dividend plug-in scheme related to the circular debt also boosted confidence in the Pakistan Petroleum, OGDC, and PSO shares.
Market analysts are optimistic about the future, hoping for the smooth transition of a capable caretaker government to take over the reins of the country.
Raza Jafri, the Head of Equity at Intermarket Securities, described the KSE-100 index as ending the week on a “buoyant note.” He also noted strong interest in banks due to their solid financial results and undervalued stock prices.
Overall, the addition of more Pakistani companies to the MSCI index and positive developments in various sectors have contributed to the remarkable surge in the KSE-100 index, enhancing investor sentiments and driving market growth.