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Friday, March 29, 2024

MSCI reclassifies PSX to Emerging Markets Index

MSCI confirms that the Pakistan Stock Exchange has been reclassified from Frontier Markets to Emerging Markets in its semi-annual index review earlier this week.

According to the press release  published by MSCI that was previously known as  Morgan Stanley Capital International and MSCI Barra, the company states that it “will reclassify the MSCI Pakistan Indexes from Frontier Markets to Emerging Markets at the May 2017 Semi-Annual Index Review.”

In the days leading up to the announcement, the benchmark KSE-100 index saw bullish frenzy as anxious investors were optimistic about the PSX being upgraded to the Emerging Markets Index, pushing the index to an all-time high. Monday’s close saw the KSE-100 close at 52,387.87.

Despite the intense wait, the market started Tuesday’s trading session on a negative note as investors started to “sell on news” of the reclassification as more than expected companies had been added to the MSCI Pakistan Index, according to Arif Habib Corp’s Ahsan Mehanti. Pakistan’s weight in the MSCI Emerging Markets index will be 0.10 per cent, which will take effect on June 1. According to the press release, the three largest constituents of the MSCI Pakistan Index are Habib Bank, United Bank and Lucky Cement .

Other companies included in the MSCI Global Standard Index (large cap index) include Engro Corporation, MCB Bank and Oil and Gas Development Company. Companies on the Small Cap index list include Bank Al-Falah, Fauji Cement Co, Fauji Fertilizer Bin Qasim, Fauji Fertilizer Co, Ferozesons Laboratories, Hub-Power Co, IGI Insurance, Indus Motor Company, Kot Addy Power Company, Maple Lead Cement, Millat Tractors, National Bank of Pakistan, Nishat Mills, Packages Ltd, Pak Elektron, Pak Suzuki Motor Co, Pakistan Oilfields, Pakistan State Oil and Searle Pakistan.

 

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