Morgan Stanley Capital International (MSCI), a leading provider of benchmark indices has announced the results of November 2010 Semi-Annual Index Review with one deletion of Kot Addu Power Company (KAPCO) from the MSCI Frontier Market Index. After deletion of one company, Pakistan's weight in MSCI Frontier Market Index has reduced from 3.76 percent to 3.66 percent.
According to details available, the MSCI is considering to exclude Trinidad and Tobago (0.93 percent weight) from the MSCI Frontier Index. While a decision on the same is expected in February and deletion of one country could provide some nominal weight-age gains to Pakistan, Imtiaz Gadar, an analyst at KASB Securities said.
MSCI has also announced the results of the initial construction of the MSCI Frontier Markets Small Cap Indices where 13 Pakistan stocks have been included in the index. The details of weights are not available currently. Pakistan ranks third in terms of the number of stocks included in the small cap indices behind Bangladesh and Vietnam.
MSCI has not placed Pakistan on its rating watch for potential upgrade to Emerging Markets index, an analyst at JS Global Capital said. The twelve stocks remaining in the index are Oil and Gas Development Company (OGDC), MCB Bank Limited (MCB), Habib Bank Limited (HBL), Fauji Fertiliser Company (FFC), Engro Corporation (Engro), National Bank of Pakistan (NBP), Pakistan Petroleum Limited (PPL), Pakistan Oilfields Limited (POL), Pakistan State Oil (PSO), Hub Power Company (HUBCO), United Bank Limited (UBL) and Pak Telecom Company.