MSCI Adds 7 PSX Companies to Its Indices

Investment research firm and stock markets index provider Morgan Stanley Capital International (MSCI) has added 7 Pakistani-listed companies to its indices.

MSCI released an update on its Quarterly Index Review for August 2024, notifying of 1 addition for Pakistan to the MSCI Main Frontier Market Index.

Sazgar Engineering Works (SAZEW) has been added to the MSCI Main Frontier Market. The addition of SAZEW is likely to increase the weight of Pakistan by ~7 bps. Similarly, existing constituents’ weight is also expected to increase from 4.35 percent to 4.49 percent. According to Topline Securities, both will take total Pakistan weight to 4.56 percent, up 21bps.

In the MSCI Pakistan Frontier Market Small Cap index, 6 new constituents have been added, and 2 constituents have been removed.

The additions to the small-cap index include Atlas Battery Limited (ATBA), Ghandhara Automobiles Limited (GAL), Habib Sugar Mills Limited (HABSM), Chemical Pakistan Limited (LOTCHEM), Octopus Digital Limited (OCTOPUS) and Soneri Bank Limited (SNBL).

The companies that defied industry expectations were Faysal Bank (FABL), Fauji Cement (FCCL), Fauji Fertilizer Bin Qasim (FFBL), and DG Khan Cement (DGKC). These companies had a free float market cap of $67.8 million, $63.9 million, $68.6 million, and $67.1 million, respectively as of the last cut-off date. However, the criteria was raised to $69 million free float.

While Hascol Petroleum and Sazgar Engineering Works have been deleted from the MSCI Small Cap Index.

All changes will be implemented as of the close of August 30, 2024.