Karachi, September 08, 2021 (PPI-OT): MSCI to reclassify MSCI Pakistan Index from Emerging to Frontier Markets

MSCI announced the reclassification of MSCI Pakistan Indexes from Emerging Markets (EM) to Frontier Markets (FM). The reclassification is a result of the three existing stocks (HBL, MCB and LUCK) no longer meeting the standards for Size and Liquidity since the past two years.

The implementation will coincide with the November 2021 Semi-Annual Index Review, where we expect a cumulative net outflow of over US$100mn from EM funds in HBL, MCB and LUCK.

Pakistan will have an inclusion of four securities in the MSCI Frontier Markets Index with an estimated index weight of 1.90% as compared to an estimated ~6% weight when Pakistan was a part of Frontier Markets four years ago when Pakistan was promoted to Emerging Markets.

The results of another consultation regarding inclusion in MSCI FM 100 and MSCI FM 15% Country Capped Index, that has begun today, will be announced coinciding with the February 2022 Quarterly Index Review.