Pakistan retains position in FTSE secondary emerging market

March 28, 2024 (MLN): FTSE Russell, a leading global index provider has kept Pakistan's status as a secondary emerging market.

However, it also kept Pakistan on the watch list for possible demotion from secondary emerging to Frontier market status amid a decline in its index weight over the past few years.

"Over the last few years Pakistan has experienced a steady decrease in its index weight within FTSE Russell global benchmarks, " FTSE said in the statement on Wednesday.

This resulted in the market failing to meet the minimum investable market capitalisation exit level threshold required to retain a secondary emerging market status, based on data as of the close on Friday June 30, 2023, resulting in Pakistan being placed on watch list from September 2023.

The minimum investable market capitalisation and securities count assessment is conducted twice a year, based on data as of month-end June and December.

Based on data as of the close on Friday December 28, 2023, Pakistan marginally passed the minimum investable market capitalisation exit level threshold that is required to retain secondary emerging market status.

Pakistan will next be assessed against the minimum investable market capitalisation and securities count exit level thresholds based on data as of the close on Friday June 28, 2024.

FTSE Russell will announce the results of the assessment by Friday July 05, 2024.

Subject to Pakistan failing the thresholds and final ratification by the FTSE Russell Index Governance Board, FTSE Russell will announce the reclassification of Pakistan from secondary emerging to Frontier market status in conjunction with the September 2024 index reviews that are effective from the open on Monday September 23, 2024.

Consequently, following the recommendations received from the FTSE Equity Country Classification Advisory Committee and the FTSE Russell Policy Advisory Board, the FTSE Russell Index Governance Board has determined to retain Pakistan on the watch list as part of the March 2024 Interim Update.

To provide investors with visibility of the potential movement of markets between classifications, FTSE Russell maintains a watch list of markets that are under review and being monitored for reclassification.

Copyright Mettis Link News