The Global X MSCI Pakistan exchange-traded (PAK) fund slumped 5% Tuesday, one of the worst performances among developing-economy ETFs.
Pakistan’s currency devaluation is weighing on equities, and the ETF is now down nearly 12% this year. MSCI moved Pakistan stocks from the frontier to the emerging category, which was supposed to be a boon. The central bank is the biggest player in the thinly-traded rupee market, a managed float system, Reuters reported.
After the Trump administration delayed a rule that would allow foreign entrepreneurs to work in the United States, the iShares MSCI India Small Cap ETF (SMIN) tumbled 1.3%, the second worst performance among ETFs we are following.
On the brighter side: The iShares MSCI Qatar Capped ETF (QAT) rose 2.2% after the United States and Qatar brokered an agreement to track the flow of terrorist financing. U.S. secretary of State Rex Tillerson praised Qatar’s negotiations behavior, but Saudi Arabia, Bahrain, the United Arab Emirates and Egypt said late Tuesday they would maintain economic sanctions on the country, The Guardian reports. Qatar’s foreign minister said the memorandum signed in Doha was in the works since President Donald Trump called for more action to track down terrorist fund two months ago, and was unrelated to the pressure from neighbors.
The iShares MSCI Turkey ETF (TUR) rose for a second day, bringing its increase this week to more than 3%. A protest rally in Istanbul Sunday drew big crowds culminated a 25-day March from Ankara by opposition leader Kemal Kilicdaroglu, 68, Reuters reports. The veteran politician said he was breaking down “walls of fear” about speaking out about “rights, law, justice” under the President Recep Tayyip Erdogan and his AK Party. The government arrested, fired or detained thousands for alleged collusion in the July 2016 coup attempt. Protesters in videos can be seen with signs reading “adalet,” or justice.
The iShares China Large-Cap ETF (FXI) rose 1.9%. China’s sovereign wealth fund, the china Investment Corporation, urged U.S. authorities to allow more access to American assets; it’s especially keen on U.S. infrastructure investments. See our post China, Russia & Oil In The News: Stop Yawning!
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