Pakistan markets and country-specific ETF surged Wednesday after Saudi Arabia provided a “larger than expected” bailout to stabilize the emerging economy.
The Global X MSCI Pakistan ETF (NYSEArca: PAK) advanced 5.4% Wednesday.
Pakistan stocks rallied, experiencing its best single-day gain on record, after Saudi Arabia provided a $6 billion bailout to support the country’s sever account imbalances, Arab News reports.
“Pakistan’s stock market today recorded the highest surge in a single session in its entire history thanks to the Kingdom of Saudi Arabia’s much-needed support of $6 billion,” Mohammed Sohail, CEO of Topline Securities, told Arab News, adding that Saudi’s cash and deferred oil facility is far larger than expectations. “This will provide the much-needed support to Pakistan’s worsening external account position.”
The worsening account positioning has been further exacerbated by the depreciating Pakistani rupee currency, which has depreciated 16.8% against the U.S. dollar so far this year. The welcomed bailout deal could help stem the bleeding.