Pakistan’s USD 500 mn headache: EFG Hermes Frontier CEO Ali Khalpey says “Pakistani equities [could 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 Inc. restores the nation to emerging-market status,” Bloomberg reports. Says Khalpey: “It’s a big number and there isn’t enough capacity in the system to handle the volume and value we expect. 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.” Read the piece for a nice Q&A with Khalpey and for a video on what to expect of Pakistan’s upgrade (runtime: 3:04).
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