MSCI upgradation opens door for foreign inflows
AMANULLAH KHAN KARACHI—Foreign inflows up to $ one billion into Pakistan stocks likely following upgradataion of Pakistan Stock Exchange by MSCI to Emerging Market status. It is believd the ripple effect would also be visible in EFERT, PPL, DGKC, MCB, OGDC and K Electric stocks. The status to emerging market in act is a big endorsement of government’s economic reform program, improved institutional framework for capital market regulations and strong investment credentials.
According to market analysts, net foreign flows associated with the re-classification has gained added importance given investors’ experience in Qatar and UAE, two markets which saw pre-buying by locals and significant market run-up (46-70% return) from MSCI announcement of upgrade leading to actual inclusion. Meanwhile KSE-100 Index which in a high profile added yet another 191 points to close in green at 38,751.61 levels here on Thursday, the market mood indicates that it may soon cross the unprecedented level of 40,000. Amid a market volume of 255 million shares, K ELECTRIC already in a high profile retained its position as the volume leader with a trade of 22 million shares to their credit while PIBT and PTCL were second and third volume leaders with a respective trade of 21 million 13 million shares to their credit.