Shareholders seem to be in a rush to snap up U.S.-listed exchange-traded fund dedicated to Pakistani stocks before the nation’s entry into MSCI Inc.’s emerging-market index next week.
Hence, Global X MSCI Pakistan ETF is on course for the biggest monthly inflow since it started two years ago after investors added $11.8 million from May 1 through May 24, data compiled by Bloomberg show. More than $1 million short positions have been cut as bearish bets were pared to the lowest since December.
Most of the Pakistani shares were bought on Tuesday, turning net buyers for only the fourth time this month, amid optimism the nation may lure a wider class of investors after regaining emerging-market status for the first time in nine years.
“Pakistan is going from being a big fish in a small pond to a small fish in a big pond,” Jay Jacobs, director of research at Global X, said by phone from New York.
“The upgrade will put the country on people’s radars, whereas they wouldn’t have had the desire to invest before.”, he added.
The fund’s assets have quadrupled this year to a record $48 million, the data show.
Read more at Bloomberg.