Karachi, Pakistan’s financial hub, Photo by Rahib ALi via Wikimedia Commons
After knocking the frontier doors for nine years, Pakistan has entered the grouping of world’s next promising economies with the Index provider MSCI’s inclusion of the country as an emerging market.
The reclassification of the country as an emerging market from frontier market marks recognition of its vast economic potential and opportunities for investors.
With the new status Pakistan has added six securities in its main board and 27 securities in small-cap index.
The US-based Morgan Stanley Capital International noted in its latest review that “MSCI will reclassify the MSCI Pakistan Indexes from Frontier Markets to Emerging Markets at the May 2017 Semi-Annual Index Review.
“The MSCI Pakistan Indexes will fully converge with the MSCI Provisional Pakistan Indexes, effective June 1, 2017,” it noted.
According to a newspaper report, six companies, namely Engro Corporation, Habib Bank, Lucky Cement, MCB Bank, Oil and Gas Development and United Bank, will be part of MSCI EM main board, while 27 companies, including DG Khan Cement, International Steel, Engro Fertilizer, Sui Northern, Thal Limited, Shell Pakistan, Honda Cars and National Refinery will be part of small-cap index, according to the latest decision.
In a report The News said MSCI Pakistan Index will have a pro forma weight of 0.10 percent compared to earlier expectation of 0.15-0.18 percent. Final weights would be determined on the closing rates of May 31.
