MSCI adds OGDC to Frontier Market Index

Morgan Stanley Capital International (MSCI) has announced the addition of Oil and Gas Development Company (OGDC) to its global Frontier Market Index (FM) with effect from June 1, 2022.

It, however, decided to shift Habib Bank Limited (HBL) to the MSCI FM Pakistan Small-Cap Index from the main Frontier Market Index.

MSCI made the announcement in its latest Semi Annual Review (SAIR). The changes would come into effect on June 1, 2022.

The number of Pakistani stocks in the global FM index remained at three as it retained Lucky Cement and MCB Bank in the main index.

Arif Habib Limited reported that Pakistan has an estimated weight of 1% in the MSCI FM Index.

MSCI also announced other changes in the MSCI Small-Cap index whereby apart from HBL, two new additions were made from Pakistan, namely Engro Polymer and Chemicals (EPCL) and Indus Motor Company. No deletions were announced from this index.

To recall, following the feedback received from market participants, MSCI concluded in February 2022 that Pakistan would become eligible for inclusion in the MSCI Frontier Markets 100 and the MSCI Frontier Markets 15% Country Capped Indexes under the Semi-Annual Index Review.

Therefore, it believes Pakistan will be added to the FM Index 100 (whereby estimates suggest 13 constituents to be selected) and the MSCI FM 15% Country Capped Index (with 4 constituents) from June 1, 2022.

Published in The Express Tribune, May 14^th, 2022.

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