Flash Note: Pakistan Market: Pak weight in EM to slightly fall Post China A Shares Inclusion
- Morgan Stanley Capital International (MSCI) earlier today announced the results of the May 2018 Semiâ€Annual Index Review for the MSCI Equity Indexes.
- While there was no change in the MSCI Global Standard Indexes, MSCI has removed Pak Elektron (PAEL), National Refinery (NRL) and IGI Holdings Limited (IGIHL) from the MSCI Global Small Cap Indexes. All changes will be implemented from the close of May 31, 2018.
- Other development coinciding with the index review is the partial inclusion of China A shares in the MSCI China Index as well as relevant global and regional composite indexes, such as the MSCI Emerging Markets Index.
- China A-shares (234 stocks), will represent an aggregate weight of 0.39% in the MSCI Emerging Markets Index at a 2.5% partial inclusion factor during the first step. The second phase of the entry will take place in Sep 2018.
- Consequently, we estimate Pakistan’s weight in MSCI Emerging Market Index to slightly fall after partial inclusion of China A shares.
- While there were rumors pertaining to addition of Pakistan Petroleum (PPL) to MSCI EM index before the announcement, the standard MSCI EM index remain unchanged with existing 5 stocks (large & midcap) – Habib Bank (HBL), Oil & Gas Development Company (OGDC), United Bank (UBL), MCB Bank (MCB) and Lucky Cement (LUCK) – which was in-line with our expectations.
Topline Securities is one of the fastest-growing brokerage houses in Pakistan. It has strong Equity Brokerage, Economic/ Equity Research, Commodity Trading and Corporate Finance & Advisory functions.
Topline Securities has been endowed with numerous awards by renowned international financial organizations. The highlights of which consists of the award for ‘Best Local Brokerage House of Pakistan’ by Asiamoney Brokers Poll (the largest Asia-focused equity services provider poll) in 2016 and ‘Best Equity Brokerage House’ by CFA Society Pakistan in 2015.
Previously, Topline Securities held the title for ‘Best Brokerage House’ for 4 consecutive years (2011-2014) by Asiamoney Brokers Poll. Other awards include the ‘Best Salesperson’ award by Asiamoney for 6 consecutive years (2011-2016), the ‘Arabia Fast Growth 500’ award and ‘Pakistan Fast Growth 100’ award in 2012 and 2013 by AllWorld Network.
JCR-VIS, a credit rating agency providing independent rating services in Pakistan has assigned initial rating of “A-2” for short term and “A” for long term to Topline Securities. Topline Securities is registered as Underwriter, Book Runner and Research Entity with Securities & Exchange Commission of Pakistan (SECP).
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