Wednesday Sep 08, 2021
KARACHI: Stocks at the Pakistan Stock Exchange (PSX) slipped on Wednesday, as the MSCI decision to downgrade Pakistan to Frontier Markets rattled investor confidence.
According to the verdict, the MSCI will reclassify the MSCI Pakistan Indexes from Emerging Markets to Frontier Markets in one step, coinciding with the November 2021 Semi-Annual Index Review (SAIR).
In line with the market forecast, foreign and local investors resorted to selling of shares at the stock market as an immediate response to the news. The benchmark KSE-100 touched an intra-day low of 402 points.
Moreover, a surge in COVID-19 cases also impacted the investment climate. Trade at PSX faced a weaker lead from the start of the trading session after investors considered the impact that the increasing number of local COVID cases could have on economic growth.
The benchmark KSE-100 index fell 333.25 points or 0.71% on Wednesday, to close at 46,396.71 points.
A report from Topline Securities noted that Pakistan equities closed in the red as the benchmark KSE-100 index came under pressure over the MSCI's decision to downgrade Pakistan from Emerging Market to Frontier Market.
Trading volume rose to 477.9 million shares compared to 423.8 million shares traded on Tuesday (September 7).
During the session, shares of 524 listed companies were traded. At the end of the session, 160 stocks closed in the green, 344 in the red, and 20 remained unchanged.
TPL Corp was the volume leader with 39.04 million shares, gaining Rs0.24 to close at Rs25.52. It was followed by Telecard Limited with 37.4 million shares, gaining Rs1.54 to close at Rs1.54, and Ghani Global Holdings with 35.4 million shares, gaining Rs3.37 to close at Rs48.39.