The upcoming MSCI review scheduled for August 12, 2024, is expected to bring significant changes to Pakistan’s representation in the MSCI Frontier Markets (FM) Index. Several Pakistani companies are poised to be added to the index, while one company may be delisted.
According to a report by Arif Habib Limited (AHL), seven Pakistani stocks are likely to be included in the MSCI FM Index: Sazgar Engineering Works Limited, Service Industries Limited, Pioneer Cement Limited, D.G. Khan Cement Company Limited, Fauji Fertilizer Bin Qasim Limited, Fauji Cement Company Limited, and Faysal Bank Limited.
However, TRG Pakistan Limited is anticipated to be removed from the index due to its failure to meet the required minimum market capitalization of $126 million.
With these changes, Pakistan’s representation in the MSCI FM Index is expected to increase to 27 companies from 21. This will also boost Pakistan’s weight in the index from 3.7 percent to approximately 4.2 percent.