MSCI has announced changes to its Frontier Market Indexes, with Habib Metropolitan Bank added to the main MSCI Frontier Market Index, while The Searle Company Limited has been removed in the latest index review.
The changes are part of MSCI’s periodic review of Frontier Market constituents and are closely watched by investors because they can affect foreign fund flows and institutional investment activity in emerging and frontier markets.
Following the review, Habib Metropolitan Bank will join the MSCI Frontier Market Index, a benchmark tracked by global investment funds focused on frontier economies.
Meanwhile, The Searle Company Limited has been deleted from the main Frontier Market Index but added to the MSCI Frontier Markets Small Cap Index.
MSCI also announced the addition of Crescent Textile Mills and Highnoon Laboratories to the Frontier Markets Small Cap Index.
Murree Brewery was removed from the MSCI Frontier Markets Small Cap Index under the latest review.
Analysts said inclusion in MSCI indexes often improves a company’s visibility among international investors and can support trading activity and foreign portfolio inflows.
Pakistan remains part of the MSCI Frontier Markets category after being downgraded from the Emerging Markets Index in 2021 because of lower market liquidity and accessibility concerns. Since then, changes in MSCI reviews have remained important for foreign investor participation in the Pakistan Stock Exchange.