Semi Annual Review: Pakistan now has weight of 0.023pc in MSCI EM Standard Index

KARACHI: The Morgan Stanley Capital International (MSCI) has announced the outcome of its Semi Annual Review, whereby Pakistan, with one addition and one deletion, now has a weight of 0.023 percent in MSCI EM Standard Index as compared to 0.016 percent previously.

With four deletions and one addition, the Pakistan’s weight in the Small Cap Index has been revised to 0.379 percent.

The said changes of MSCI Semi Annual Review will become effective from May 28, 2021.

MSCI has added Lucky Cement (LUCK) and deleted Oil and Gas Development Company (OGDC) from MSCI EM Standard Index.

“We estimate inflows in the LUCK to the tune of $39.65 million (6.89 million shares at last closing price) while we estimate outflows in OGDC to clock in at $16.69 million (27.48 million shares at last closing),” Tahir Abbas at Arif Habib Limited said.

Moreover, there have been four deletions and one addition from MSCI Small Index as Indus Motor Company (INDU), Lucky Cement (LUCK), National Bank of Pakistan (NBP) and Packages (PKGS) have been removed and TRG has been added.

“On the small cap flows, we believe that funds invested in LUCK under small cap might not offload LUCK while other estimated outflows are NBP ($3.78 million ; 17.56 million shares), INDUS ($4.0 million ; 0.55 million shares), and PKGS ($3.46 million ; 1.09 million shares),” Abbas said.

On the inflow side, $17.46 million inflows are expected in TRG (16.08 million shares at last closing), he added.

“Total $29.18 million net inflows expected ($22.96 million net inflows from Standard Index and $6.22 million net inflows from Small Cap) assuming Small Cap tracking funds won’t be selling LUCK while assuming selling in LUCK from Small Cap net inflows will still be $3.36 million ($22.96 million net inflows from Standard Index and net selling of $19.60 million from Small Cap Index).”

Copyright Business Recorder, 2021