Pakistan’s representation in the MSCI Frontier Markets (FM) Index is anticipated to undergo some key changes in the upcoming MSCI review, scheduled for August 12th, 2024. These changes are expected to take effect on September 2, 2024.
Expected additions:
We anticipate that seven stocks will be added to the MSCI FM Index, which is:
- Sazgar Engineering Works Limited (SAZEW)
- Service Industries Limited (SRVI)
- Pioneer Cement Limited (PIOC)
- D.G. Khan Cement Company Limited (DGKC)
- Fauji Fertilizer Bin Qasim Limited (FFBL)
- Fauji Cement Company Limited (FCCL)
- Faysal Bank Limited (FABL)
Expected deletions: On the other hand, TRG Pakistan Limited (TRG) will be deleted from the MSCI FM Index because its stock does not meet the total market capitalization criteria of USD 126mn.
After these adjustments, the total number of Pakistani constituents in the MSCI FM Index is expected to increase to 27 from 21 in the last MSCI review. Consequently, we anticipate that Pakistan’s weight in the MSCI FM Index will rise from 3.7% to approximately 4.2%.
Courtesy – AHL Research
