KARACHI: Pakistan equities closed flat after witnessing a volatile session on Tuesday as benchmark KSE100 index traded in the range of 800 points. The index dipped by 39 points to 42459.53 level. Market carried bearish momentum and opened lower with benchmark index tumbling within the first hour of trading. Initial selling pressure was reportedly due to margin calls that had risen sharply since yesterday as brokers offloaded margin holdings. The controversial statement of Nawaz Sharif during the week end that shook the mark previous day had its spillover effect on Tuesday’s session as well. On the MSCI front, Morgan Stanley Capital International MSCI announced the results of the May 2018 Semi-Annual Index Review for the MSCI Equity Indexes. No change in the MSCI Global Standard Indexes was made but MSCI removed Pak Elektron (PAEL), National Refinery (NRL) and IGI Holdings Limited (IGIHL) from the MSCI Global Small Cap Indexes. All changes will be implemented from the close of May 31, 2018. Other development coinciding with the index review is the partial inclusion of China A shares in the MSCI China Index as well as relevant global and regional composite indexes, such as the MSCI Emerging Markets Index. China A-shares, 234 stocks, will represent an aggregate weight of 0.39 percent in the MSCI Emerging Markets Index at a 2.5 percent partial inclusion factor during the first step. The second phase of the entry will take place in Sep 2018. “Consequently, we estimate Pakistan’s weight in MSCI Emerging Market Index to slightly fall after partial inclusion of China A shares”, analyst at Topline Securities commented . On corporate results front, Honda Atlas Cars traded lower after announcing poor results. Honda Atlas Cars, gross margins shrink 4 point YoY to 11 percent. Meanwhile, Gharibwal Cement inched up after announcing the start of Commercial Operations of 250TPH vertical grinding mill. “We continue to recommend cherry picking to take advantage of the ongoing weakness in value plays”, analyst at Elixir Securities said. Published in Daily Times, May 16th 2018.