The reclassification of the Index is expected to bode well for the local equity market as Pakistan’s weight will increase to 2.3% in the Frontier Market Index compared to 0.2% in the Emerging Market Index and the number of companies will increase to 23 from 16. Consequently, the visibility of the Pakistani market among foreign investors will improve and attract more investment.

Moreover, the reclassification into Frontier Market will reduce the uncertainty among investors as more companies meet the criteria for a longer time. The local investors also prepare their investment strategies accordingly.

Courtesy – Spectrum Research