Elixir Securities - Pakistan Equity Market - MSCI EM Index - Two More Bite the Dust

Report

Elixir Securities

Hamad Aslam

EUR 4.28 For Business Accounts Only

Pakistan Equity Market - MSCI EM Index - Two More Bite the Dust

There were no surprises in MSCI semiannual review as UBL and LUCK were removed from the EM Standard Index and added to the Small Cap Index; we expect this to result in sell-off of around 10mn shares (USD35mn at current value) from LUCK and 25mn shares (USD26mn at current value) from UBL
We estimate Pakistan’s weight in the Standard EM Index to plummet to under 4bps (0.04%) from 6bps as of now and 7bps as of last SAIR in May-18
HCAR and MLCF were removed from the MSCI Small Cap Index, which were already flagged by us as the most vulnerable due to the erosion in the market capitalizations
While we disregarded the market misconception that Pakistan may be completely downgraded from Emerging to Frontier Markets via this review, we however highlight that the next SAIR due in May-19 will be a key event to watch out for

14/11/2018 4 EN

Provider

Elixir Securities

Elixir Securities Pakistan is a Corporate Member of the Pakistan Stock Exchange & Pakistan Mercantile Exchange and is one of the leading securities brokerage & investment banking firms in Pakistan, established since 1994. Our principal business activities include all aspects of Pakistan’s Capital Markets covering Securities Brokerage (Equities, Fixed Income and Commodities), Corporate Finance & Capital Markets Advisory (M&A, ECM, DCM) and Investment Research (Economics & Securities). We are one of the most active & aggressive Broker-Dealers in Pakistan executing trades for most of the Top 20 Global Brokers with unmatched corporate access credentials and have successfully advised and closed on some landmark ECM transactions in the history of Pakistan including the largest deal in frontier Asia (USD 1.02 billion). Our Clients include foreign and domestic financial institutions (Banks, Asset Managers, Insurance Companies, Pension Funds) corporates, HNWI’s and retail investors. This is supported by a very strong and independent research capability, which is quoted regularly in both local and international media.

Elixir Securities Pakistan is the proud recipient of many awards & recognitions including AsiaMoney’s Brokers Poll 2017, FinanceAsia’s Pakistan Best Investment Bank and Best Broker 2017, The Asset’s Best Brokerage House in Pakistan 2016, Asiamoney’s “Best Domestic Equity House 2015 in Pakistan”, The Asset Triple A Country Awards 2015 - Pakistan “Deal of the Year” and “Deal of the Year-Highly Commended”, CFA Society of Pakistan Awards for Year 2015 “Best Research Analyst (1^st Rank), CFA Society of Pakistan Awards for Year 2014 “Best Research Analyst (1^st Rank)”, “Best Trader” 2nd Runner-up (3rd Rank), The Asset Triple A Country Awards 2014’s “Best Deal in Pakistan” and Capital Finance International’s nomination for “Best Equity Research in Pakistan 2010”.

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Analysts

Hamad Aslam

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Pakistan Equity Market - MSCI EM Index - Two More Bite the Dust

Open End Mutual Funds Industry - Ad Oculos

Pakistan Equity Market: Weekly Review - Index Closes Above 41k Mark on Foreign Buying

Elixir Grid - KSE100: Make or Break?

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