In its May 2025 Index Review, MSCI has added three Pakistani cement sector stocks—DG Khan Cement (DGKC), Maple Leaf Cement (MLCF), and Fauji Cement (FCCL)—to the MSCI Frontier Market Index. With these additions, the total number of Pakistani constituents in the index rises to 26 from the previous 23, according to Topline Securities.
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These changes will take effect on May 30, 2025.
According to JS Global, Pakistan now has 93 stocks represented across MSCI’s Frontier Market indices. The country’s estimated weight in the MSCI Frontier Index stands at approximately 6–6.5 percent.
Based on MSCI’s updated selection criteria, the minimum free float and total market capitalization thresholds for inclusion in the Frontier Market Index were raised in the May 2025 review to \$78 million and \$155 million, respectively—up from \$72 million and \$145 million in the February 2025 review.
Despite not meeting the revised free float threshold, Interloop (ILP), Searle Limited (SEARL), and Abbott Laboratories (ABOT) have been retained in the index under MSCI’s buffer rule, a precedent also seen with TRG in earlier cycles before its eventual removal.
The newly added cement companies collectively represent an index weight of approximately 26 basis points. With an estimated \$2–3 billion in global funds tracking the MSCI Frontier Index, projected inflows into these stocks could range from \$5 million to \$8 million.
In parallel, MSCI has updated its Small Cap Index. Four Pakistani stocks have been added: Archroma Pakistan (ARPL), At-Tahur (PREMA), Engro Polymer (EPCL), and Pak Reinsurance (PAKRI). One stock, DGKC, has been upgraded to the main index, while AGP Pharma (AGP) and Agritech Limited (AGL) have been removed.
