Lahore - The MSCI , a leading provider of investment decision support tools worldwide, announced on Wednesday, the results of Semi-Annual Index Review for MSCI Equity Indices with 2 additions and 1 deletion for Pakistan in MSCI Frontier Markets (FM) Index. In MSCI FM Index as a whole, there will be 6 additions while 9 companies will be deleted. The 3 largest additions to the MSCI Frontier Markets Index will be Boubyan Bank (Kuwait), Ciments Du Maroc (Morocco) and Hub Power Company (Pakistan). All changes will be applicable from May 29, 2015. In MSCI FM Index, Hub Power Company (HUBC) and Indus Motor (INDU) from Pakistan have been added while Pakistan Tobacco (PAKT) has been deleted. Pakistan’s new weight in MSCI FM Index is not yet available. However, its weight will rise following these additions/deletion and successful Habib Bank’s (HBL) secondary offering by Govt. in Apr 2015.
To recall, 4 additions and 1 deletion from Pakistan were made in May 2014. Moreover, Qatar and UAE were upgraded from FM to Emerging Markets (EM).
As a result, Pakistan’s weight in MSCI FM Index increased to 8.88% (as of Apr 30, 2014) compared to 4.1% in May 2014. After this review, Pakistan will have 16 companies in MSCI FM Index, i.e. ENGRO, FATIMA, FFC, HBL, HUBC, INDU, KEL, LUCK, MCB, NBP, OGDC, POL, PPL, PSO, PTC and UBL.
In MSCI FM Small Cap Index, 4 companies (KOHC, MLCF, PAEL and PSMC) from Pakistan have been added, while 5 companies (HUBC, INDU, DGKC, MUREB and NATF) have been deleted.
With the current additions/deletions, Pakistan will have 22 companies in MSCI Small Cap Index i.e. ABOT, AKBL, APL, BAFL, NML, BAHL, DAWH, FCCL, FFBL, HMB, IGIIL, KAPCO, KOHC, MLCF, MTL, LPCL, NRL, PAEL, PKGS, PSMC, SHEL and SSGC.
MSCI will be announcing on Jun 9, 2015 the results of its 2015 Annual Market Classification Review. Just to recall, only the proposal to partially include China A shares into Emerging Markets is currently included on the review list of the 2015 Annual Market Classification Review.
Start of any consultation process to upgrade Pakistan from MSCI Frontier Market Index to MSCI Emerging Market may be initiated in the 2015 Annual Market Classification Review. The consultation process, however, takes a minimum of 6-12 months before actual decision is taken to upgrade any country.