A Bloomberg report has cited that investors have been on a spree of buying up a US listed exchange trade fund dedicated to Pakistan before its entry into MSCI emergent market index on 1st of June. The data compiled by Bloomberg shows Global X MSCI Pakistan ETF is on its way to recording its highest ever monthly inflow since its inception two years ago. Roughly investors have added $11.8m from the start of May till the 24th of this month.
Since Pakistan’s reclassification as an emerging market by MSCI, Bloomberg reported that foreigners have bought the most shares in a year on Tuesday, May 23rd. Global X MSCI Pakistan’s ETF funds assets have quadrupled to $48m this year, as the data revealed. Bloomberg spoke to Mark Mobius, executive chairman of Templeton Emerging Markets Group who said that it still considered Pakistan as a frontier market due to lack of improvement in its corporate governance. Also it was mentioned in the report that foreign investors had pulled out $213m in the first five months of 2017, following the outflow of $334m last year.
