Pakistani 14 companies included in MSCI, to attract foreign investment in PSX

Pakistan companies listed at the stock market would increase in its weightage to 2.7% from 0.6% in MSCI following its quarterly witnessing inclusion of 14 companies.

In its latest Quarterly Index Review (QIR), the MSCI has announced changes in the constituents of its global indices, which will be effective from Sep 01, 2023.

Total 14 stocks have been moved from the MSCI Small Cap Index to the MSCI FM Standard Index.
Additionally, Bank Alfalah has been included in the MSCI FM Standard Index, bringing the total number of stocks in that index to 17.
Starting from the next month i.e. Sep’23, these modifications will lead to an upward revision in Pakistan’s weight within the MSCI FM Index, with the new weight being ~2.7%, a substantial rise from the current weight of ~0.6%.
In USD terms, the cumulative market capitalization of stocks added to the MSCI Pakistan FM Index has grown by 15% since the last MSCI review (effective from 01-Jun-2023).
The MSCI has also made adjustments to the MSCI Pakistan Small Cap Index, with the inclusion of 41 stocks in the index.

The combined market capitalization of the stocks added to the MSCI Pakistan Small Cap Index in USD has surged by 19% since the last MSCI review (effective from 01-Jun-2023).

It is pertinent to highlight that, among all the countries, Pakistan has experienced the most significant increase in weight in the FM Standard Index (+2.1%). In contrast, heavyweight countries like Morocco, Romania, and Kazakhstan have witnessed a decline of 1.2%, 1.0%, and 1.1%, respectively.

Overall, this review is anticipated to have a positive impact on the market.
Since the start of the current fiscal year equity market has witnessed a foreign investment of around $23 million