The MSCI (Morgan Stanley Capital International), a global leader in research-based indices and analytics, released its November 2024 quarterly review for the Frontier Markets Index. The adjustments to the MSCI indices will be effective from November 26, 2024. The review reflects key changes in the MSCI Pakistan Index and MSCI FM Small Cap (Pakistan) Index.
Key Highlights
- MSCI Pakistan Index:
- Deletion: TRG Pakistan Limited (TRG) has been removed.
- This adjustment brings the total securities in the MSCI Pakistan Index down to 21.
- MSCI Frontier Market Small Cap (Pakistan) Index:
- Additions: Eight companies have been added – CPHL, CSAP, FCL, FLYNG, PAKOXY, SHFA, THCCL, and TRG.
- Deletion: FFBL has been removed.
- With these changes, the MSCI FM Small Cap (Pakistan) Index now includes 67 securities.
Implications for Pakistan’s Financial Market
This update is expected to bolster Pakistan’s weight within the MSCI Frontier Market indices, potentially attracting increased foreign investment. However, there has been a noted net foreign selling of USD 93.7 million in FY25 to date, driven largely by Pakistan’s exclusion from the FTSE Emerging Market indices, contrasting with foreign buying of USD 140.8 million in FY24.
Market Capitalization of MSCI Index Constituents
Below are notable companies within each index based on their free-float market capitalization:
- MSCI Pakistan Index (Top Companies by Market Cap):
- FFC – USD 715 million
- UBL – USD 552 million
- EFERT – USD 422 million
- OGDC – USD 414 million
- MSCI FM Small Cap (Pakistan) Index (Top Companies by Market Cap):
- CHCC – USD 124 million
- PIOC – USD 73 million
- ATRL – USD 70 million
- TRG – USD 69 million
Summary Table of Changes
| Index | Additions | Deletions | New Total Securities |
|---|---|---|---|
| MSCI Pakistan Index | None | TRG | 21 |
| MSCI FM Small Cap (Pakistan) | CPHL, CSAP, FCL, FLYNG, PAKOXY, SHFA, THCCL, TRG | FFBL | 67 |
These updates reflect MSCI’s dynamic approach in evaluating market performance and aligning its indices with current market conditions. The adjustments aim to foster market growth, ensuring a diversified representation of Pakistan’s economy within the global investment landscape.