MSCI announces Pakistan’s constituents in the Frontier Market

• Following its previous announcement of reclassification of Pakistan from the Emerging Market to the Frontier Market Index in Aug’21, the global index provider has disclosed constituents alongside the Nov’21 Semi-Annual Index Review (SAIR).

• While the reclassification coincided with the Nov’21 SAIR, effective date of transition has been set at Dec 01, 2021.

• Pakistan’s weight is estimated at 1.36% (as per yesterday closing) in the MSCI FM Large Cap Index with LUCK (0.56% weight), HBL (0.42% weight) and MCB (0.37% weight) making the cut.

• Apart from this, the MSCI has announced 14 constituents under the MSCI Small Cap Index namely ENGRO, EFERT, FFC, HUBC, MARI, MTL, POL, PPL, PSO, SEARL, SYS, TRG, and UBL.

• To recall, MSCI had previously simulated OGDC to be part of the Large Cap Index however, it could not be added to the final list while INDU, BAHL, NBP, PKGS and ABOT were axed from the final MSCI Small Cap list as well.

• We also highlight that the MSCI also started the consultation for inclusion of Pakistan in the MSCI FM 100 index and MSCI FM 15% country capped index, which will be announced in the Feb’22 quarterly review (applicable in the May’22 SAIR).

Courtesy – AHL Research


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