KARACHI: Morgan Stanley Capital International (MSCI) will be releasing the results of the MSCI May 2021 semi-annual index review on May 11, 2021. The announcement is expected to be made shortly after 11:00 pm, Central European Summer Time (CEST), and 2:00 am according to Pakistan Standard Time (PST) on May 12, 2021.
All changes will be made as of the close of May 28, 2021.
There is some chatter in the market regarding the possible inclusion of Lucky Cement (LUCK) in the main index. However, we do not expect any deletions or additions of constituents in MSCI Pakistan Index under MSCI Global Standard Indexes. LUCK is unlikely to meet the free-float capitalization requirement of over US$750million.
The existing constituents are Oil and Gas Development Company (OGDC), Muslim Commercial Bank (MCB) and Habib Bank Limited (HBL).
Under the MSCI Global Small Cap Indexes, we highlight the possibility of inclusion of TRG Pakistan (TRG) whereas Packages Limited (PKGS) may see possible deletion.
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 Pakistan’s exclusion from MSCI EM.