Pakistan upgraded to MSCI emerging market status
KARACHI: Morgan Stanley Capital International (MSCI) has upgraded Pakistan to MSCI Emerging Market status after a gap of nine years, opening its door to global investors that track the index.
MSCI, a leading provider of international investment decision support tools, announced the changes to its indexes as a result of its May 2017 Semi‐Annual Index Review, including upgrading Pakistan as an emerging market from a frontier market status.
“The MSCI Pakistan Indexes will fully converge with the MSCI Provisional Pakistan Indexes, effective June 1, 2017,” said the press release issued early Tuesday morning.
As per the decision, six large-cap stocks will now be part of the MSCI Pakistan Index with effect from June 1, 2017.
The stocks of Oil and Gas Development Company (OGDC), Habib Bank Limited (HBL), United Bank Limited (UBL), Lucky Cement, MCB Bank, Engro Corporation will be large cap stocks added to MSCI Pakistan Index.
Additionally, 27 small-cap stocks were included into the MSCI Pakistan Index.
MSCI’s decision to upgrade Pakistan from the Frontier Markets status is also expected to generate substantial inflows of global portfolio investment.
Pakistan remained part of the MSCI EM Index between 1994 and 2008. In 2008 MSCI remove it from the index then made Pakistan a part of the Frontier Markets Index in May 2009.