KARACHI: Pakistan’s weight in the MSCI Frontier Markets Index fell to 4.8 per cent in the May 2026 review from 5.8 per cent previously, as weaker market capitalisation of existing Pakistani constituents outweighed gains in the broader frontier market universe, according to Topline Research.
The MSCI added Habib Metro Bank to its main frontier market index, while removing Searle Pakistan Limited in its latest semi-annual review.Searle was excluded after its foreign inclusion factor-adjusted free float market capitalisation fell below the minimum threshold of $116 million. The brokerage estimated Searle’s adjusted free float market cap at $82 million as of end-April 2026.
In contrast, Habib Metro Bank’s adjusted free float market capitalisation stood at $129.5 million, above the required threshold for inclusion.The brokerage noted that Habib Metro had previously met the free float requirement, but its latest inclusion was likely driven by improvement in liquidity measures, particularly the annualised traded value ratio (ATVR).
According to Topline Research, Pakistan’s reduced weighting in the MSCI Frontier Markets Index reflected an around 13 per cent decline in the market capitalisation of existing Pakistani constituents, while the overall global frontier market index capitalisation rose by 6.0 per cent.
