August 21, 2023 (MLN): The Pakistan stock market witnesses a sharp decline at the start of the week as the benchmark KSE-100 index has lost 574.75 points [01:19 pm PST] in intraday trade and is currently trading at 47,643.74.
This might be attributed to the FTSE September 2023 Semi-annual Index Review, which revealed some major changes in the composition and weighting of the Pakistani stocks.
According to the review, MCB Bank will be removed from the FTSE All Cap index, resulting in an estimated outflow of $9 million, while PPL will be downgraded to the small-cap segment.
Moreover, some market players will face a transition as L&M Capital will move out from the FTSE All World index to the Small Cap segment.
On a country level, Pakistan’s overall weight will remain broadly unchanged at 0.04%.
Sector-wise, the Index was let down by Commercial Banks with 137 points, Oil & Gas Exploration Companies with 66 points, Technology & Communication with 59 points, Fertilizer with 44 points, and Power Generation & Distribution with 27 points.
The most points taken off the Index were by HBL which stripped the Index of 41 points followed by MCB with 38 points, HUBC with 30 points, OGDC with 29 points, and TRG with 29 points.
Moreover, the Pakistani Rupee continues to remain under strain, depreciating by 1.47 rupees [01:19 pm PST] against the greenback during intraday trade in the interbank.
