MSCI August 2025 Review: FABL Added to Standard Index, IDYM & JGICL Join Small Cap

KARACHI – The MSCI August 2025 review brought notable changes for Pakistan's equity landscape, with Faysal Bank (FABL) securing inclusion in the MSCI Frontier Markets Standard Index, while Indus Dyeing (IDYM) and Jubilee General Insurance (JGICL) were added to the Small Cap Index. These changes will take effect from August 26, 2025.

FABL’s addition to the Standard Index is a key highlight, signaling potential passive foreign inflows and increased trading interest. Such inclusions typically enhance short-term liquidity and reflect confidence in a company’s growing market position.

Meanwhile, IDYM and JGICL's entry into the Small Cap Index points to growing investor interest in the textile and insurance sectors. On the flip side, Habib Sugar Mills (HABSM) and Octopus Digital (OCTOPUS) were removed from the Small Cap Index, indicating possible concerns over liquidity or market performance.

While the overall liquidity impact on PSX may be limited, the psychological effect of MSCI movements remains significant. These adjustments reinforce investor sentiment around newly added stocks and caution around those removed. As regional peers face scrutiny, Pakistan's relative market stability continues to be a point of strength.