MSCI Drops 3 Pakistani Stocks

Morgan Stanley Capital International (MSCI) eliminated Bank Alfalah Limited (BAFL), Engro Polymer & Chemicals Limited (EPCL), and Indus Motor Company (INDU) from its Frontier Markets (FM) Small Cap Index.

In its recent update, MSCI removed three Pakistani equities from its Pakistani indices, effective May 31, 2023.

No PSX companies were added to the MSCI FM Small Cap index during this review. Pakistan’s MSCI FM Standard Index remains unchanged.

AHL data estimates Pakistan’s weight in the MSCI FM Standard index at 0.6 percent, with ENGRO and OGDC as constituents.

Pakistan is predicted to have 2.1 percent of the MSCI FM 100 index, with ENGRO being the largest (0.38 percent) and HBL and TRG being the least (0.2 percent apiece). The country has the second-lowest MSCI FM index PE(x) and PB(x) multiples.

Pakistan ranks third in MSCI FM liquidity.

Pakistan was reclassified into MSCI FM Index from Emerging Markets (EM) last year in November 2021. Pakistan met the classification framework for EM for market accessibility but not size or liquidity, resulting in the reclassification.

In its recent update, MSCI removed three Pakistani equities from its Pakistani indices, effective May 31, 2023.

No PSX companies were added to the MSCI FM Small Cap index during this review. Pakistan’s MSCI FM Standard Index remains unchanged.

AHL data estimates Pakistan’s weight in the MSCI FM Standard index at 0.6 percent, with ENGRO and OGDC as constituents.

Pakistan is predicted to have 2.1 percent of the MSCI FM 100 index, with ENGRO being the largest (0.38 percent) and HBL and TRG being the least (0.2 percent apiece). The country has the second-lowest MSCI FM index PE(x) and PB(x) multiples.

Pakistan ranks third in MSCI FM liquidity.

Pakistan was reclassified into MSCI FM Index from Emerging Markets (EM) last year in November 2021. Pakistan met the classification framework for EM for market accessibility but not size or liquidity, resulting in the reclassification.

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