PSX: Support continues to build around the 80k structurally bullish level.

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  • Support continues to build around the 80k structurally bullish level.
  • 49 shares rose while 44 shares fell, with LUCK PA (+1.42%), FABL PA (+5.11%) and MEBL PA (+0.85%), the biggest contributors to index gains.
  • HUBC PA (-0.89%), PPL PA (-1.17%) and OGDC PA (-1.08%) were the largest index drags.
  • Pakistan has been reclassified to FM status from secondary EM by FTSE Russell, having been on the watchlist since last year. The effective date for this will be September 23, 2024, with the rebalance on September 20.
  • With the MSCI having already reclassified to FM in 2021, the FTSE reclassification is not expected to disrupt the market. Instead, declining interest rates are fueling domestic appetite for equities, instilling confidence in the market’s stability.
  • FTSE is yet to allocate a weight to Pakistan in the FM space, where AUMs tracking will be much smaller, but Pakistan will have a far larger weight than the 0.05% it currently has across 14 stocks in the FTSE Emerging All Cap Index.
  • Once the weight is provided, calculations can be made to anticipate whether the market should expect inflows or outflows, sparking interest in future market dynamics.
  • Holding 80k keeps order flow bullish, and we anticipate expansion moves.

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