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KARACHI: The MSCI Inc announced results of its 2018 semi-annual review whereby Pakistan’s weight in its Emerging Market (EM) Index clocked in at 0.079 per cent.

Additionally, the country’s weight in the small-cap index was revised to 0.81pc.

“There has been no change in MSCI main index against our expectation of addition of Pakistan Petroleum Ltd, as the company was not eligible on the basis of lower free float as per MSCI assumption, we view,” stated Arif Habib Ltd.

Moreover, three companies including IGI Holding Ltd, National Refinery Ltd and Pak Electron Ltd were excluded from MSCI small cap. The changes would be effective on June 1.

Five companies have maintained their position in the MSCI EM Index. Those include one large cap stock (Oil and Gas Development Company) and four mid-caps namely HBL, UBL, MCB, and Lucky Cement.

Post review, MSCI small cap index constituents are as follows: Engro Corp, FFC, Hub Power, PSO, POL, The Searle, NBP, Kot Addu Power, Fauji Cement, Maple Leaf, Nishat Mills, Millat Tractors, Packages Ltd, Bank Alfalah, Indus Motor, Fauji Fertiliser Bin Qaism, Engro Fertiliser, Honda Atlas, Inter Steel Ltd, DG Khan Cement, Sui Northern Gas and Thal Ltd.

Other development coinciding with the index review was the partial inclusion of China ‘A’ shares in the MSCI China Index as well as relevant global and regional composite indexes, such as the MSCI EM Index.

China A-shares (234 stocks), will represent an aggregate weight of 0.39pc in the MSCI EM Index at a 2.5pc partial inclusion factor during the first step. The second phase of the entry will take place in September.

“Consequently, we estimate Pakistan’s weight in MSCI EM Index to slightly fall after partial inclusion of China A shares,” stated Topline Securities.

Published in Dawn, May 16th, 2018

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