World’s Top Money Managers Eye Investments in PSX After Record Rally in 2024

Pakistani equities are attracting a new wave of interest from the world’s biggest asset managers after last year’s historic 84 percent growth which made PSX the top global performer, reported Bloomberg. Companies like BlackRock Inc. and Eaton Vance Corp. have reentered or increased their holdings in the market. Pertinently, BlackRock’s Frontiers Investment Trust allocated 5 percent of its portfolio to Pakistani stocks in December 2024 after nearly two years of zero involvement. Eaton Vance also reentered the market in mid-2024, while Legal & General Investment Management Limited and Evli Fund Management Company have also increased their holdings. Intermarket Securities Ltd projects a 40 percent gain for the KSE-100 Index this year, reflecting growing confidence among investors. A portfolio manager at Morgan Stanley Investment Management Inc. said strong earnings growth were key drivers of the projected rally this year. However, political uncertainty remains a concern. Additionally, Pakistan’s downgrade to frontier market status by FTSE Russell in September led to net foreign selling in late 2024. But fund managers remain bullish. They say that if Pakistan can manage its current account deficit, there can be a multi-year rally in the market.