KARACHI: The benchmark index of the Pakistan Stock Exchange (PSX) closed at 45,045 points on Monday after gaining 173 points, or 0.4 per cent, from a day ago.

The KSE-100 index closed in the green zone despite increased foreign outflows. Foreigners have been selling shares for many sessions mainly because of the reclassification of Pakistan from the MSCI Emerging Market index to the MSCI Frontier Market index, according to Arif Habib Ltd.

Outflows from energy exploration and production, banking and fertiliser sectors kept local investors poised for a further downside in these sectors. A reflection of this phenomenon was witnessed in the shares of Pakistan Petroleum Ltd, Pakistan Oilfields Ltd, Habib Bank Ltd, Systems Ltd and Engro Fertiliser.

An uptick in the stocks of NetSol Technologies Ltd, TRG Pakistan Ltd and Avanceon Ltd just before the commencement of trading in its subsidiary, Octopus Digital, helped the index turn green, which was otherwise down 310 points during the session. The lost points saw a recovery by the close of the session.

TeleCard Ltd topped the volumes with 25.6 million shares, followed by WorldCall Telecom Ltd (21.6m) and Summit Bank Ltd (14.7m). Summit Bank announced that a UAE-based investor was poised to take over the controling interest in the smallest listed bank.

Sectors contributing to the KSE-100 index’s performance included technology (70 points), pharmaceutical (48 points), food (21 points), chemical (18 points) and investment banks (13 points).

The traded volume rema­ined the same at 267.2m shares. The average traded value increased 12pc to touch $59.1m against $52.8m.

Stocks that contributed positively to the index include TRG Pakistan (49 points), The Searle Company (39 points), Colgate-Palmolive Pakistan (17 points), Avanceon Ltd (17 points) and Engro Corporation (16 points).

Stocks that contributed negatively include Pakistan Petroleum Ltd (23 points), Lucky Cement (21 points), Pakistan Oilfields Ltd (12 points), Fauji Fertiliser Company (11 points) and Cherat Cement Company (8 points).

JS Global said it expects the equity market to consolidate at the current level and advised investors to build positions in blue-chip stocks, especially those that yield double-digit dividends.

Published in Dawn, October 5th, 2021