TWO Pakistani companies will be added into the MSCI Frontier Markets Index after close of business on May 29, the research and analytics firm announced last week.
The two companies are the Hub Power Company Ltd (Hubco) and Indus Motors Ltd (INDU). Meanwhile, the Pakistan Tobacco Company Ltd will be removed from the index.
On the whole, there will be six additions to and nine deletions from the MSCI Frontier Markets Index. Apart from Hubco, the two other largest additions will be Boubyan Bank (Kuwait) and Ciments Du Maroc (Morocco).
In the MSCI Frontier Markets Small Cap Index, four local companies — Kohat Cement, Maple Leaf Cement, Pak Elektron and Pak Suzuki Motor Company — will be added, while five firms — Hubco, INDU, D.G. Khan Cement, Murree Brewery and National Foods will be deleted.
After May 29, the index would have 16 Pakistani companies
The country’s overall weight in the MSCI FM index is also likely to increase from the current 8.88pc due to an increase in the free float of Habib Bank Ltd.
Post-May 29, the MSCI FM index would have 16 Pakistani companies: OGDC, POL, PPL, HBL, MCB, NBP, UBL, FFC, Engro, Fatima, Hubco, INDU, PTC, KEL, Lucky and PSO.
Published in Dawn, Economic & Business, May 18th, 2015