KARACHI: The benchmark KSE-100 Index increased 0.37 per cent during the week ended February 11, 2022. This positivity in the market can be attributed to good corporate announcement, where higher-than-expected dividend announcement came as a positive surprise for the market.
An analyst at Topline Securities said that the MSCI released update on its Quarterly Index Review, notifying no change in the constituents for Pakistan in the MSCI main Frontier Market Index.
“MSCI also included Pakistan in MSCI FM 100 and MSCI 15% country capped index, which may generate some additional inflows.”
The Pakistan Stock Exchange KSE-100 shares Index gained 0.36 per cent, or 169.72 points, to close at 46,079.37 points. The KSE-30 shares index closed flat at 17,968.1 points.
Average daily traded volume declined 28 per cent to 207 million shares/
day, while the value of traded securities declined 16.5 per cent to Rs8.1 billion.
An analyst said a number of positive announcements were expected as an outcome of Prime Minister Imran Khan’s visit to Beijing, which was likely to greet developments in the textile, information technology, defence, manufacturing and engineering sectors coupled with the trade enhancement and balance of payments support, which would keep positive sentiment in the bourse upbeat, going forward.
“Moreover, corporate results’ spell will be carried forward in the forthcoming week too with investors hoping of strong earnings growth coupled with attractive dividend payouts, directing the market in the green zone.”
In the latest MSCI Quarterly Index Review (QIR), MSCI consultation for Pakistan’s eligibility for inclusion in the MSCI FM 100 Index and the MSCI FM 15% Country Capped Index has concluded.
Pakistan will become a part of these indices in the upcoming MSCI Semi-Annual Index Review (SAIR) in May 2022, wherein analysts expect a total of $86 million worth of foreign inflows, which can likely to rejoice the investors’ sentiment.
Pakistan continues to trade at unwarranted earnings multiple 5.3x its earnings, 55 per cent discount to the average of other markets in the investible universe of Frontier Market funds.
An analyst at JS Global Capital said Pakistan had never traded near to 5x its earnings for a considerably long time and this effectively puts the KSE-100 in one of the most lucrative spot, especially compared with the region.
“We reckon frontier focused foreign investors could wake them from slumber and rekindle interest in blue chips.”
