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MSCI likely to add Pakistan to FM 100 index

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Although a small inflow of investment of only $80 Million but good returns will encourage bigger volume and even more investors.

MSCI likely to add Pakistan to FM 100 index​

Research house expects $75-95m foreign inflows in May 2022



Salman SiddiquiFebruary 08, 2022

the msci pak fm would have a weight of 2 3 in the msci fm index and 5 8 in the msci fm 100 index photo file

The MSCI Pak FM would have a weight of 2.3% in the MSCI FM Index and 5.8% in the MSCI FM 100 Index. Photo: File

ISLAMABAD:
The Morgan Stanley Capital International (MSCI) will announce the results of its consultation with global investors for potentially making Pakistan a part of its Frontier Market (FM) 100 index and FM 15% Country Capped index, developing an outlook for foreign investment flows into the country.
The result of the consultation along with MSCI Quarterly Index Review is scheduled to be announced on Wednesday (February 9, 2022). The decision would come into effect from May 2022 onward.
Foreign investors, that track the MSCI FM 100 index, are managing funds in the range of $2-2.5 billion.
“We can expect foreign inflows in the range of $75-95 million in May 2022, while the active flows could materialise before May 2022,” Arif Habib Limited Head of Research Tahir Abbas projected.
“Pakistan’s weight is expected at 3.64% in the MSCI FM 100 index.”
Earlier, Pakistan Stock Exchange (PSX) was downgraded to MSCI FM from Emerging Market (EM) index in September 2021, following market capitalisation (share prices) of companies listed at the bourse fell below the required level of MSCI EM and failed to rebound for quite a long time.
PSX was made part of the MSCI FM index with three securities namely Lucky Cement, Habib Bank Limited and MCB Bank in September 2021.
Besides, another 17 companies from PSX made their way to Pakistan standalone index among MSCI FM index at the time. “We do not expect any major deletions from the main frontier market index (from the three securities in quarterly index review), however, we believe that Oil and Gas Development Company can become part of the main index,” Topline Research analyst Umair Naseer added.
In its semi-annual review in November 2021, MSCI assigned Pakistan a weight of 1.25% in FM index.
“We anticipate Pakistan’s weight to remain more or less the same in the upcoming quarterly index review,” he said.
 
No thanks Roshan Digital Account Direct Investment in Pakistan
Just need Pakistan's National ID card and 7-8% profits

May be for foreigners who need access to Pakistan's Market sure they can invest in the index but for Pakistani the Easier Direct Route is Roshan Digital Account

Recognized by all the Banks in Pakistan
 
No thanks Roshan Digital Account Direct Investment in Pakistan
Just need Pakistan's National ID card and 7-8% profits

May be for foreigners who need access to Pakistan's Market sure they can invest in the index but for Pakistani the Easier Direct Route is Roshan Digital Account

Recognized by all the Banks in Pakistan
Problem is lack of clearity and investment in pakistan acquities

How can this change?
1- eliminate pension fund instead make pension fund that invest in equities
2- strengthen the security comission

Why it wont happen?

Corruption..pakistan is most corrupt country in the world hence noone trust the stock market

More pakistanis invest in india then pakistan due to this reason..yes in india..

Other reason is that 60% pakistanis think corruption is not only okay but also necessary for development..majority of those are educated hence why there is also no future hope..as education may make the problem worse
 
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