Bloomberg said that Pakistan’s stocks, which increased an unprecedented 84 percent last year to make PSX the best global performer, are drawing fresh attention from the world’s largest asset managers.
Enterprises such as BlackRock Inc. and Eaton Vance Companies. have reentered or raised holdings in the market.
After almost two years of no engagement, BlackRock’s Frontiers Investment Trust December 2024 assigned 5 percent of its portfolio to Pakistani stocks. Legal & General Investment Management Limited and Evli Fund Management Company have also grown their stakes, as has Eaton Vance in mid2024.
Reflecting increasing investor confidence, Intermarket Securities Ltd forecasts a 40% gain for the KSE100 Index in 2021. At Morgan Stanley Investment Management Inc., a portfolio manager. mentioned that the forecasted surge this year majorly depended on strong earnings expansion.
Still, political uncertainty is a worry. Pakistan’s relegation in September by FTSE Russell to frontier market category caused net foreign selling towards the end of 2024 as well.
Fund managers nevertheless are optimistic. They claim that a severalyear stock market surge can follow if Pakistan can control its present account deficit.
