Based on the September 2024 holding analysis, the FTSE benchmarked fund Vanguard has sold approximately $82.5 million worth of stocks by September 2024 out of a total of $165 million using the current market price.
According to Topline Securities, approximately $60 million worth of stocks were sold in the first two weeks of October 2024, taking the total selling to $135-145 million.
Background
On July 03, 2024, FTSE Russell announced the reclassification of Pakistan from Secondary Emerging to Frontier Market status with effect from September 23, 2024, as Pakistan failed to meet the criteria of stock count. FTSE benchmarked fund held $160-165 million of position in Pakistan stocks as of Apr/May 2024.
Top Sold Positions As of September 2024
The fund was fully sold in Systems Limited (1.8 million shares) by September followed by OGDC with 96 percent of the position sold off by September 2024 with a quantity of 25 million shares (total 26.3 million). Furthermore, the fund has also sold 84 percent of its holdings in EFERT with a quantity of 18.4 million shares (total 21.8 million).
Top Remaining Positions As of September 2024
The fund has sold only 11 percent of the position in PSO by Sep 2024 with 11.4 million shares still in hand out of a total of 12.8 million shares. The second and third remaining position is in PPL and FFC with 28 percent of the sold in both stocks. The remaining quantity of PPL and FFC is 17.8 million shares and 18.2 million shares out of a total holding of 25.0 million and 25.3 million shares, respectively.
According to Topline, approximately $55-60 million worth of stocks were sold in the first 14 days of October 2024. From October 01 to October 14, foreigners have sold $88 million of stocks (gross), which also includes selling in non-FTSE stocks like COLG, valuing around $18 million. Out of COLG adjusted selling of $70 million, a majority (roughly 85-90 percent or $60 million) consists of Vanguard. That said, Vanguard is now left with $20-30 million of stocks. The few leftover names are most likely FFC, TRG, ENGRO, MTL, and PSO, based on the NCCPL FIPI data analysis.
Outlook
The report said the selling of Vanguard is well absorbed by local Mutual funds with net buying of $86.2 million from September 2024 to date followed by companies with net inflows of $25.3 million. The report expects the market to reach 106,000 by June 2025, providing a return of 24 percent.
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