Pakistan, Asia's best-performing stock market, is just getting started

Key index is up 36% since March after rate cuts

The rebound that’s helped make Pakistan equities Asia’s best performers since the end of March isn’t done yet, according to some money managers.

The nation’s central bank has been among the most aggressive globally in cutting interest rates this year to cushion the economy amid the coronavirus pandemic. That has reduced the double-digit returns from fixed income and bolstered the bullish case for equities.

“Given the abrupt fall in interest rates, locals are still early in their re-allocation from bonds to equities,” said Ayub Khuhro, chief investment officer at Faysal Asset Management Ltd, whose assets have tripled to 35 billion