MSCI Adds 3 More PSX Companies to Its Frontier Markets Index

MSCI has announced its May 2025 Index review, wherein 3 new securities of Pakistan are added to the frontier market index, namely DG Khan Cement (DGKC), Maple Leaf Cement (MLCF), and Fauji Cement (FCCL), all three represent cement sector of Pakistan. This takes the total number of constituents in the MSCI Frontier Index to 26 from 23 earlier, said Topline Securities. These changes will be effective from May 30, 2025. According to JS Global, Pakistan now has 93 stocks in the MSCI Frontier Market Index. Based on details updated on the MSCI website, in the May 2025 review, the minimum threshold of free float and total market cap for the selection of frontier market stocks was US$ 78 million and US$ 155 million, respectively. In the last review (February 2025), the threshold was US$ 72 million and US$ 145 million, respectively. Interloop (ILP), Searle Limited (SEARL), and Abbott Laboratories (ABOT) are retained in the index despite not meeting the free float threshold on the basis of the buffer rule. In the past, TRG was retained despite not meeting the threshold and was subsequently removed from the index in upcoming reviews. Pakistan weighs at 6-6.5 percent: The report estimates Pakistan’s weight in the MSCI frontier market index to be close to 6-6.5 percent. Inflow estimation in new additions: The addition of 3 cement companies constitutes a weight of 26bps. Assuming US$ 2-3 billion in funds tracking the frontier market index globally, the inflows in these companies are estimated at around US$ 5-8 million. MSCI Small Cap: MSCI has also added 4 stocks to the small cap index, namely Archorma Pakistan (ARPL), At-Tahur (PREMA), Engro Polymer (EPCL), and Pak Reinsurance (PAKRI). One stock is moved to the main index (DGKC), and two are deleted, namely AGP Pharma (AGP) and Agritech Limited (AGL).