Pakistan to be dropped from MSCI emerging markets index this month:

Pakistan to be dropped from MSCI emerging markets index this month:


According to the MSCI this is due to the floor mechanism which had resulted in total closure of Pakistani equity market. The MSCI international equity indices are constructed and managed with an objective of being fully liquid from the perspective of international institutional investors. However the statement issued says that if the floor mechanism is removed and in due course the index resumes its normal trading pattern then it may be allowed to be traded again. Removal from MSCI in addition to the downward rating by moody’s and S&P is another blow to the confidence of the already worried investors.