MSCI quarterly review may see few changes

08 Aug, 2020

KARACHI: MSCI will release the results of August 2020 Quarterly Index Review on Aug 12. Announcement will be made available shortly after 11 pm Central European Summer Time (CEST), i.e. 2 am Pakistan Standard Time (PST) on Aug 13. Analysts expect no deletions or additions of constituents in MSCI Pakistan Index under MSCI Global Standard Indexes. The existing constituents are Oil and Gas Development Company (OGDC), MCB Bank (MCB) and Habib Bank (HBL).

"We estimate Pakistan's weight is likely to remain around the 0.02 percent mark", Syed Atif Zafar, director research and chief economist at Topline Securities said.

In the last review, the minimum criteria for EMs was reduced to $1,400 million of total market capitalization and $700 million of float market capitalization.

"Under the MSCI Global Small Cap Indexes, we highlight the possibility of inclusion of Bank Al Habib (BAHL) whereas Package Limited (PKGS) may see possible deletion", he said.

Pakistan has been part of MSCI Emerging Market (EM) owing to the Index Continuity Rule since May-2019. "However, we do not expect any developments with respect to the Pakistan's exclusion from MSCI EM", he added.

Copyright Business Recorder, 2020

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