Pakistan ETF Tumbles After Trump Speech, Hitting Lowest Level Since June 2016

By Ryan Vlastelica Markets MarketWatch Pulse

The largest exchange-traded fund to track Pakistan's equity market fell on Tuesday, after President Donald Trump said the U.S. would pressure the country step up its fight against extremism. The Global X MSCI Pakistan ETF fell 0.6%, building on Monday's 1.4% drop. With the day's decline, the fund declined to its lowest level since June 2016. The fund has been a weak performer of late, and is on track for its eighth decline of the past 12 sessions. While it hit an all-time high in May, the $36 million fund has lost more than 20% of its value of the past three months. In a speech given on Monday night, Trump said he intended to step up the fight against extremists and Taliban forces in Afghanistan, a strategy that will include taking a harder line on Pakistan. "Pakistan has much to gain from partnering with our effort in Afghanistan," he said. "It has much to lose by continuing to harbor terrorists." For the year, the ETF is down 16.2%. To compare, the Dow Jones Industrial Average is up 10.4% over that period while the S&P 500 has risen 9.1%.

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