The Morgan Stanley Capital International (MSCI) has announced outcome of its Semi Annual Review (SAIR), whereby Pakistan now has a weight of 0.026 percent. Additionally, Pakistan's weight in the small cap index has been revised to 0.734 percent.
All three companies including OGDC, MCB and HBL have maintained their position in the MSCI Standard Index as the buffer rule (33 percent or 2/3) has most probably been applied and relaxation given in the total float category for HBL, and for OGDC and HBL in the free float market cap. Moreover, there have been two deletions and two additions from the MSCI small index as NML and SNGP have been removed and MARI and PPL have been added. Pertinently, said changes will become effective from 1st June 20. The outflows resulting from deletions of NML and SNGP are expected to be negligible.
Post review, the MSCI small cap index scrips include ENGRO, LUCK, FFC, HUBC, PPL, UBL, POL, EFERT, PSO, MARI, BAFL, SEARL, MTL, NBP, INDU and PKGS. "Overall, the review is expected to be neutral for the market," an analyst at Arif Habib Limited said. However, HBL might perform given its underperformance prior to the review as threat of exit from the index has been avoided, he added.
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