MSCI has announced fresh changes to its Frontier Market Indexes, adding Habib Metropolitan Bank to the main MSCI Frontier Market Index while removing The Searle Company Limited in its latest review.

The changes are part of MSCI’s regular review of Frontier Market constituents and are closely tracked by investors because of their potential impact on foreign fund flows and institutional trading activity.

Following the review, Habib Metropolitan Bank will be included in the MSCI Frontier Market Index, a key benchmark followed by global funds investing in frontier economies.

At the same time, The Searle Company Limited has been removed from the main Frontier Market Index and added to the MSCI Frontier Markets Small Cap Index.

MSCI also announced the addition of Crescent Textile Mills and Highnoon Laboratories to the Frontier Markets Small Cap Index, while Murree Brewery was removed from the same index.

Market analysts said that inclusion in MSCI indexes often boosts a company’s visibility among international investors and can support trading volumes and foreign portfolio inflows.

Pakistan remains part of the MSCI Frontier Markets category after being downgraded from the Emerging Markets Index in 2021 due to concerns over liquidity and market accessibility.

Since then, MSCI reviews have continued to carry significance for foreign investor participation in the Pakistan Stock Exchange.