Pakistan's stock market poised for continued growth in 2024: Bloomberg

January 09, 2024 (MLN): The economic recovery story playing out in countries like Pakistan can shape up to be one of the most favorable bets for 2024 as these markets will benefit from greater political stability, macro-economic stabilization, easing monetary policies, and a robust recovery in earnings, according to Bloomberg.

“My biggest bet for 2024 is the economic recovery story playing out in Bangladesh, Pakistan, and Sri Lanka as these markets will benefit from greater political stability, macro-economic stabilization, easing monetary policies, and a robust recovery in earnings,” a fund manager at Asia Frontier Capital was quoted as saying by Bloomberg.

Ruchir Desai, Asia Frontier Capital's fund manager, expects the rally in Asia’s frontier markets to extend into 2024 thanks to growing macro stability, with larger economies like Vietnam playing catch up.

The equity benchmarks of Pakistan and Laos, a rare investment destination for many due to the markets’ small size and volatility, ranked among the world’s top five gauges in 2023, notching gains of more than 50%, while Vietnam rose 12%.

Asia’s top-performing fund managers are seeking opportunities in battered Chinese stocks and turning selective on the hot artificial intelligence theme as the region comes off a tough year.

The MSCI Asia Pacific Index hugely underperformed global peers in 2023, with its 9% rise less than half the S&P 500’s advance.

The global backdrop now looks more favorable.

The Federal Reserve’s much-anticipated interest rate cuts are poised to add tailwinds while expectations are growing for Chinese equities to bottom out.

Copyright Mettis Link News