Morgan Stanley Capital International (MSCI) is expected to include six additional stocks from the Pakistan Stock Exchange (PSX) in its indices during the upcoming review scheduled for February 11, 2025. This development is anticipated to bring significant changes to Pakistan’s representation in the MSCI Frontier Markets (FM) Index, according to a review by Arif Habib Limited.
Based on the latest criteria outlined in MSCI’s August 2024 report, companies with an ordinary share market capitalization of at least USD 168 million and a free float market capitalization of USD 69 million qualify for inclusion in the MSCI Frontier Markets Index. The changes resulting from the review are expected to take effect on March 3, 2025.
The brokerage house predicts that six stocks will be added to the MSCI FM Index: Cherat Cement Company Limited (CHCC), Attock Refinery Limited (ATRL), D.G. Khan Cement Company Limited (DGKC), The Searle Company Limited (SEARL), Pioneer Cement Limited (PIOC), and Air Link Communication Limited (AIRLINK). No deletions are expected in this review.
Following these adjustments, the total number of Pakistani constituents in the MSCI FM Index is projected to increase from 21 to 27. As a result, Pakistan’s weight in the index is expected to rise from 4.4% to approximately 6.9%, further enhancing the country’s representation in the global financial markets.
