Pakistani cement firms downgraded from MSCI EM Index

Pakistan stock markets may see a repercussion of the MSCI Semi Annual Index Review in the short term. According to market sources, in its November 2018 Semi Annual Review, MSCI has downgraded United Bank (UBL) and Lucky Cement (LUCK) from Standard classification to Small Cap classification.
 
Similarly, Maple Leaf (MCF) and Honda Atlas (HCAR) have been deleted from the Small Cap indexes. These changes will be effective on Monday, 3 December 2018 and will likely lead to passive foreign outflows, mostly concentrated in UBL and LUCK.
 
After the effective date, Pakistan's remaining representatives in the MSCI Global Standard Indexes will be OGDC, HBL and MCB.