KARACHI: Three companies of Pakistan, including Bank Al Habib Limited, Lucky Cement and Pakistan State Oil, will be added to the MSCI index, stated a report issued by the BMA Capital on Thursday.
On the increase in weight of Pakistan in the MSCI FM (Frontier Markets) 100 index to 8.3 percent from previous 4.3 percent, the report noted that it would allow greater visibility and allocation within the FM funds – having estimated assets under management at $18 billion.
According to the report, the MSCI (Morgan Stanley Capital International) Inc, a leading provider of investment decision support tools worldwide, would implement all changes to the methodology for the MSCI FM 100 index as proposed on 3 March, 2014 following consultations with the investment community.
The changes to the MSCI FM 100 index will be implemented in seven phases with the first phase to be coincided with the May 2014 semi-annual index review, noted the brokerage firm.
The changes, it said, include application of a higher and more representative free float adjusted market capitalisation requirement, a cap of 40 percent on the cumulative weight of the two largest countries in the MSCI FM 100 index, permission to the number of constituents in the MSCI FM 100 index to fluctuate between 85 and 115 at the time of the semi-annual reviews and reclassification of the MSCI Qatar and MSCI UAE indices to emerging markets from the FM.