Pakistan stocks closed at a record high on Tuesday as expectations rose that the country’s stock market would be included in the MSCI’s emerging market index by Wednesday, dealers said.
The benchmark 100-share index of the Pakistan Stock Exchange closed up 537.79 points, or 1.45 percent, at 37,517.75.
The index posted its best single-day percentage gain since May 5.
“The stock exchange rose today due to the expectation of the upgradation of Pakistan into emerging markets which will be announced in less than a day,” said Hammad Aman, Manager, Equity Sales at Topline Securities (Pvt) Ltd.
Pakistan was excluded from the emerging markets index and classified as a higher-risk frontier market after the Karachi Stock Exchange was temporarily closed in late 2008 to prevent investors from withdrawing funds.
The exchange applied for inclusion last two years, gaining review status last year. (http://reut.rs/1No7Qzr)
Volumes rose 2.9 percent to 143 million shares on Tuesday, while traded value increased to 9.5 billion rupees ($90.82 million).
K-Electric and Pakistan International Bulk Terminal Private Ltd led the volume gainers with a combined trade of about 38 million shares.
Banking stocks rallied as Habib Bank Ltd closed at its upper limit, while United Bank Ltd and MCB Bank Ltd gained 2.3 percent and 2.1 percent, respectively.