Opening Bell: MSCI rebalancing answers the door for bears

MG News | May 28, 2019 at 11:43 AM GMT+05:00

Add Mettisglobal as a Trusted Source on Google

0:00

May 28, 2019 (MLN): The lingering fear of the bears’ return to the trading floors has just come to pass as the benchmark KSE – 100 index lost over 750 points to MSCI rebalancing in early trade today, thus marking an intraday low of 34,939 points.

The index is currently trading at 35,071 points, after spending a week on recovering from the prior damages caused by persistent bearish sentiments.

Today’s losses are attributed to MSCI’s semi-annual review which took place earlier this month, and in which three companies namely; Fauji Cement (FCCL), Fauji Bin Qasim (FFBL) and International Industries (ISL) were removed from the small-cap index.

Although this rebalancing was announced a fortnight ago, it comes into effect from today, thereby resulting in a steep crash at the trading floors.

Moreover, since the equity market recovered remarkably by 7% in 5 days, profit-taking seems to be another cause for the index's downfall today.

The sectors most impacted by this are the commercial banks and the oil & gas exploration companies.

Copyright Mettis Link News

Related News

Name	Price/Vol	%Chg/NChg
KSE100	180,104.61 388.90M	-0.11% -206.60
ALLSHR	108,838.05 888.10M	-0.14% -150.10
KSE30	53,603.57 82.09M	-0.20% -109.40
KMI30	252,988.26 112.53M	-0.14% -356.16
KMIALLSHR	69,789.36 622.55M	0.02% 11.95
BKTi	51,939.19 21.86M	-0.35% -181.79
OGTi	35,691.88 10.10M	0.01% 3.44

Symbol	Bid/Ask	High/Low

Name	Last	High/Low	Chg/%Chg
BITCOIN FUTURES	63,065.00	63,340.00 62,700.00	90.00 0.14%
BRENT CRUDE	88.47	88.97 88.01	-0.05 -0.06%
RICHARDS BAY COAL MONTHLY	110.00	0.00 0.00	-0.45 -0.41%
ROTTERDAM COAL MONTHLY	122.30	0.00 0.00	0.40 0.33%
USD RBD PALM OLEIN	1,175.00	1,175.00 1,175.00	0.00 0.00%
CRUDE OIL - WTI	82.16	82.73 81.72	-0.24 -0.29%
SUGAR #11 WORLD	16.60	0.00 0.00	0.00 0.00%