• MSCI, a leading provider of investment decision support tools and services, has released the results of its May 2025 Index Review for the MSCI Equity Indexes. The announced changes will take effect after the market closes on May 30, 2025.
• As part of the review, three Pakistani stocks, DG Khan Cement (DGKC), Fauji Cement (FCCL) and Maple Leaf Cement (MLCF) have been added to the MSCI Standard Index, increasing the total number of Pakistani companies in the index from 23 to 26.
• In the MSCI Small Cap Index, four companies, Archorma Pakistan (ARPL), At-Tahur (PREMA), Engro Polymer (EPCL) and Pak Reinsurance (PAKRI), have been included. However, two companies, AGP Pharma (AGP) and Agritech limited (AGL), have been removed from the Small Cap Index. Additionally, DG Khan Cement (DGKC) has been upgraded from the Small Cap Index to the Standard Index.
• The latest MSCI review is positive for Pakistan, as new listings are expected to strengthen the country’s position in global indices. Enhanced representation in MSCI indices could attract greater foreign investment, improving market liquidity and boosting investor confidence.
• As of April 30, 2025, the MSCI Pakistan Index comprised 23 constituents with a total market capitalization of USD 6,423.17 million. The index remains concentrated in a few key sectors, reflecting the structural makeup of Pakistan’s listed equity market. The Materials sector holds the largest weight at 30.19%, followed by Financials at 25.56% and Energy at 23.56%. Together, these three sectors account for nearly 80% of the total index weight. Utilities stand at 9.8%, while Information Technology, Consumer Discretionary, Industrials, and Health Care hold smaller shares of 3.4%, 2.7%, 2.69%, and 2.1% respectively.

 Courtesy- AHCML Research