Global index provider MSCI Inc. has announced a series of changes to its Frontier Markets Small Cap Indexes, affecting several emerging economies including Sri Lanka, Pakistan, Kenya, Vietnam, and Tunisia.
The changes, which form part of MSCI’s semi-annual index review, will take effect as of the market close on November 24, 2025.
The latest review sees Sri Lanka and Vietnam leading in the number of constituent adjustments, reflecting renewed market activity and investor confidence in select frontier markets.
Sri Lanka, which has been recovering from a prolonged economic crisis, recorded the most significant update in the review with four companies added to the MSCI Sri Lanka Small Cap Index.
The new entrants include Citizens Development, Kelani Cables, Laugfs Gas Voting, and Sierra Cables, while Swisstek (Ceylon) was deleted.
The additions may signal a growing recognition of Sri Lanka’s improving corporate fundamentals and foreign investor interest, particularly in the manufacturing and energy sectors.
In Pakistan, six companies entered the index, underscoring gradual recovery in investor sentiment despite macroeconomic headwinds. The additions comprise AGP, Big Bird Foods, Ghandhara Industries, Giant Chemical Industries, Ghani Global Holdings, and Int’l Packaging Films.
Atlas Battery and Bank of Punjab were deleted from the Pakistan index.
Pakistan’s inclusion activity reflects MSCI’s continued interest in the South Asian market, which remains attractive to investors seeking long-term value despite ongoing currency and political risks.
Kenya, one of Africa’s key frontier markets, saw two additions: CIC Insurance Group and Williamson Tea Kenya, with no deletions. Market experts suggest that Kenya’s growing insurance and agribusiness sectors are becoming increasingly significant in frontier market portfolios.
Morocco recorded one addition, Salafin, to its small-cap index, maintaining a stable representation in the North African region.
Vietnam continued to show dynamism, with six new companies added and four deletions. The additions include 4D Investment and Construction, Cat Lai Port, Ha Giang Mineral, Japan Vietnam Medical, One Capital Hospitality, and Saigon Cargo Service.
Meanwhile, Bamboo Capital, HCM City Infrastructure, Tracodi Construction Holdings, and Vinh Phuc Infrastructure were removed.
Vietnam’s continued expansion in MSCI’s small-cap representation underlines the country’s growing role as a manufacturing hub and investment destination in Southeast Asia.
In other updates, Tunisia added STE Assurances to its index, while Romania included Antibiotice, both with no deletions.
Oman saw Phoenix Power removed, and Mauritius had Gamma Civic deleted from its index.
Jordan added Philadelphia Intl Education with no deletions.
Overall, the review saw 18 additions and 10 deletions across nine frontier markets, reflecting MSCI’s ongoing effort to align its indexes with market performance and liquidity trends.
The MSCI Frontier Markets Small Cap Indexes are key benchmarks for global investors tracking smaller, high-growth companies in emerging and frontier economies.
Changes in index constituents often lead to portfolio rebalancing by institutional investors, potentially driving shifts in capital flows.
MSCI reviews its indexes quarterly, with major semi-annual updates typically conducted in May and November.
These reviews ensure that each index remains reflective of current market dynamics and eligible securities.
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