Up to $500m may flow into Pakistan’s equities before MSCI upgrade to market
Pakistani equities are expected to be so popular with overseas funds this week that the country’s stock market could attract more money than it can handle
Karachi — EFG-Hermes expects Pakistani equities to be so popular with overseas funds this week that the country’s stock market could attract more money than it can handle the day before MSCI restores the nation to emerging-market status. As much as $500m may gush into the nation’s equities on May 31, said Ali Khalpey, CEO for frontier markets at the Cairo-based investment bank. The single-day inflow, if it comes to pass, would compare with the $532m Pakistan received in all of 2010. The benchmark KSE100 index has risen 6.8% in May to a record. "It’s a big number and there isn’t enough capacity in the system to handle the volume and value we expect," Khalpey said. "We have worked with similar investors when Qatar and the United Arab Emirates were upgraded by MSCI. The flows won’t be staggered. Tracker funds have to execute on the day." Khalpey was in Karachi to open the EFG-Hermes office. Here are the highlights from his interview with Bloomberg News. What do you expect to happen on ...
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