Five Pakistani Companies to Join FTSE Index

In the regional scenario, five additional stocks (MCB, SNGP, BAFL, MTL & THAL) from Pakistan are all set to be added in the FTSE Asia Pacific ex Japan Index from Monday next week.

As the week closes, institutional buyers are increasing their position in value stocks, as market amalysts expect the market to recover on the back of FTSE rebalancing.

The five companies to be added to the index are MCB Bank, Sui Northern Gas Pipelines, Bank Alfalah, Millat Tractors and Thal Ltd.

According to analysts, institutional investors showed interest in Financials, Oils and selected index names banking on expected higher inflows from foreign investors.

The FTSE Global Equity Index Series Asia Pacific ex-Japan Regional Index announced the results of its semi-annual review on Aug 31. The changes will be effective from the close of business on Sept 15.

The market gradually inched up on reported institutional interest primarily in financials, oils and select [KSE-100] Index names on hopes of better flows tomorrow given FTSE rebalancing.

This should not be confused with the upgrade of six companies, namely Oil and Gas Development Company, Habib Bank, United Bank, Lucky Cement, MCB Bank and Engro Corporation, by global index provider MSCI to the emerging market status on June 1

The six stocks that were selected for the upgrade by MSCI started selling like hotcakes weeks before the date of inclusion. Buyers expected to offload these stocks at a premium to emerging-market passive funds after Jun e 1.

Analysts expected an inflow of up to $500 million of foreign investment is expected in Pakistan stock market after inclusion in MSCI Emerging Market Index but after the day it was just $82m only.

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