Lahore - The MSCI has announced results of May 2016 Semi-Annual Index Review for MSCI Equity Indices. There will be one addition to and five deletions from the MSCI Frontier Markets Index. The addition to the MSCI Frontier Markets Index will be Al Eqbal For Investment (Jordan). There is no addition/deletion for Pakistan in the MSCI FM Index.

In MSCI FM Small Cap Index, 2 companies (HCAR, PIBTL) from Pakistan have been added while 4 Pakistani companies (ABOT, BAHL, DAWH and HMB) would be deleted. At present, weight of Pakistan in MSCI FM index is 8.8% and in MSCI FM Small Cap Index is 9.8%. Recent MSCI announcement have no update on development of Pakistan equity market towards reclassification to Emerging Markets.

To recall, in Jun 2015, MSCI placed Pakistan for a potential reclassification to emerging market in Market Reclassification Review. MSCI highlighted in its consultation papers that most of the accessibility criteria of the Pakistani equity market meet the MSCI Emerging Markets standards, except for stability of the institutional framework and non-availability of stock lending and short selling.

However, MSCI will communicate its final conclusion on the potential inclusion of Pakistan into Emerging Markets on June 14, 2016. Every June, MSCI communicates its conclusions from the discussions with the investment community on the list of countries under review and announces the new list of countries, if any, under review for potential market reclassification in the upcoming cycle.