MSCI increases its Indices by 56 PSX companies

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Morgan Stanley Capital International (MSCI), a supplier of stock market indexes and investment research, has added 56 Pakistani-listed businesses to its indices.

According to research released by Topline Securities, the alleged modification would be implemented right away starting on September 1st.

On August 10, 2023, MSCI announced the addition of 15 Pakistani equities to the MSCI Frontier Market Index and 41 Pakistani stocks to the MSCI Frontier Markets Small Cap Index.

With the inclusion of 15 new stocks, the MSCI FM index now includes OGDC, MARI, PPL, LUCK, MCB, UBL, ENGRO, HBL, POL, SYS, FFC, HUBC, EFERT, MTL, BAFL, PSO, and TRG among its 17 components. There were once only two stocks, OGDC and ENGRO.

The table below shows that the MSCI FM Small Cap index presently includes a total of 41 components. In the past, the Frontier Small Cap Index had 14 companies.

58 stocks total, including 17 in the MSCI FM Index and 42 in the MSCI FM Small Cap Index, are now included in Pakistan’s MSCI FM index.

According to the Topline analysis, Pakistan’s weight would probably rise from 0.6 percent to somewhere between 2-3 percent after rebalancing. Beginning on August 31, 2023, the MSCI Frontier Market index will reflect the modifications.

Remember that in November 2021 Pakistan’s classification was changed from Emerging Market to MSCI Frontier Market.

Interests of international participants are now once again in Pakistan. Foreign corporations have made net purchases of $27 million over the past six weeks. Relevantly, the Pakistan Central Bank has sent foreign portfolio investment money efficiently.