KARACHI: Global index provider MSCI retained only two stocks — Lucky Cement Ltd and MCB Bank Ltd — in the MSCI FM Pakistan index as part of its latest semi-annual review released on Friday.

MSCI provides investment tools like indices that many global passive funds use to make investments with distributed risks around the world equity markets.

MSCI added Oil and Gas Development Company Ltd to the MSCI Pakistan Index while transferring Habib Bank Ltd to its Frontier Markets Pakistan Small-Cap Index in the half-yearly review. The changes in the constituents of its global indices will be effective from June 1.

According to Arif Habib Ltd, Pakistan’s weight in the MSCI FM Index is now 1.02 per cent.

Apart from Habib Bank Ltd, MSCI announced two additions from Pakistan — Engro Polymer and Chemicals Ltd and Indus Motor Company Ltd — to its MSCI Small-Cap Index. The index provider didn’t announce any deletions from the index.

Following the feedback received from market participants, MSCI concluded in February that Pakistan would become eligible for the inclusion in the MSCI Frontier Markets 100 and the MSCI Frontier Markets 15pc Country-Capped Indices under the semi-annual review.

“Therefore, we believe Pakistan will be added to the FM Index 100 — whereby our estimates suggest 13 constituents to be selected — and the MSCI FM 15pc Country-Capped Index (with four constituents) from June 1,” the brokerage said.

Published in Dawn, May 14th, 2022

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