https://soundcloud.com/zafar-stocks/psx-pakistan-stock-exchange-market-behavior-15-march-2016-with-future-prediction-zafar-securities
Tuesday 15 March 2016
Zafar Stocks PSX 100 Index (Zafar Securities - PSX Pakistan Stock Exchange Broker)
ZSL,Market Recap March 15-2016
It’s like “if they build it, will they come” Journey from FM to EM space. Pakistan is hoping to get out of FM space & once again gearing towards the EM sphere, which is scheduled in June’16 by MSCI.
It’s important to revisit our past; June’09, the Pakistani equity market will need to function without any trading disruptions for some time as a condition to being considered for reclassification in EM. June’10, not added to review List for reclassification to EM, June’11 MSCI Pakistan Index will not be added to the review list primarily due to the limited number of sizable securities. So finally rationale for proposal to upgrade was that the Pakistani equity market underwent a number of positive developments over the course of the past 12 to 18 months. The Pakistani equity market has grown significantly and its liquidity has greatly improved over the past years. As a result, the concerns about the potential for failing to meet size and liquidity criteria should there be a negative market event have receded.
Looking at current volumes & lack of broad based participation it seems current volumes could be a hurdle in achieving the status as improved volume works as confidence proxy. One more important element in having an upgrade is that it also depends on stake holders for reclassification as all relevant concerns will be addressed prior approval.
Getting back to our market today talk of the town was MCB, as MCB & shareholders of NIB Bank are in preliminary non-binding discussions for possible merger of NIB with and into MCB. Well volumes went crazy in NIB hitting 75mn as it seems like that they are on the winning streak whereas reality is the other way round.
Overall volumes were 204mn and the 100 index lost -115.54 points closing at 32,623.02.
Zafar Securities Private Limited.
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