The Pakistani stock market is on a tear… yet it must to be one of the least hyped markets in the world.
Three major Wall Street firms have progressively shuttered their local equity research businesses…
Citigroup’s Citibank shuttered its equity research office in Karachi, the nation’s financial capital, in March. Credit Suisse Group closed its research operations in the same city earlier this year. That follows JPMorgan Chase’s decision in late 2008 to suspend its brokerage operations, also in Karachi.
…yet nobody has cared. The Karachi 100 Index has just kept rallying and seems little concerned about the lack of Wall St. noise machines promoting it:
On a three-year chart, it looks like JP Morgan freaked-out during the crisis, and their freak-out at the end of 2008 nearly called the market bottom which came on January 23rd. The market has kept rising post the departure of Credit Suisse and Citi.
The fact that Wall St. is leaving makes us want to believe in Pakistan’s rally, despite all the country’s problems.
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