Morgan Stanley Capital International (MSCI) Inc, has reclassified three Pakistani stocks to its MSCI Frontier Markets Index, while the change will be effective from November 30, 2021.

Pakistan was recently downgraded from an emerging market category to the frontier markets index. Three Pakistani Stocks has been added to the MSCI Frontier Markets Index with total weight of 1.25%. Analyst had also predicted OGDCL in the revised list, however the stock has been omitted.

Habib Bank (HBL), Lucky Cement (LUCK) and MCB Bank (MCB), have been added to the MSCI Frontier Markets Indexes List after their removal from MSCI Global Standard Indexes. Moreover, additional 14 Pakistani companies have been added to MSCI Pakistan Index Frontier Markets small-cap indexes including ENGRO, TRG, HUBC, FFC, UBL, PPL, PSO, POL, EFERT, MARI, MTL, SEARL, BAFL.

The MSCI has stated that Pakistani stock market meets the requirements for market accessibility under the classification framework for Emerging Markets, however it fails to meet the standards for size and liquidity.

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