By: Taurus Securities Limited
MSCI, a leading provider of research‐based indexes and analytics for more than 40 years, has announced results of Nov’15 Semi‐ Annual Index Review for MSCI Equity Indices.
There will be seven additions to and nine deletions from the MSCI Frontier Markets Index. The three largest additions to the MSCI Frontier Markets Index will beAhli United Bank (Bahrain), RockcastleGlobal (Mauritius) andGlobant (Argentina), all foreign listed companies.
There is no addition/deletion for Pakistan in the MSCI FM Index.
In MSCI FM Small Cap Index, 3 companies (BYCO, SEARL & FEROZ) from Pakistan have been added while there is no deletion for the country.
At present, weight of Pakistan in MSCI FM index is 9.07% and in MSCI FM Small Cap Index is 8.61%.
Recent MSCI announcement did not update on development of Pakistan equity market towards reclassification to Emerging Markets.
To recall, in Jun’15, MSCI placed Pakistan for a potential reclassification to emerging market in Market Reclassification Review June 2015.At that time, MSCI highlighted that most of the accessibility criteria of the Pakistani equity market meet the MSCI Emerging Markets standards, except for some potential issues with the stability of the institutional framework.