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.
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