Mobius buys into stricken Pakistan stocks

Mark Mobius' Templeton Asset Management is buying shares in Pakistan after the country's devastating floods prompted an equity sell-off.

The floods, which have so far killed about 1,600 people, may cut Pakistan's economic growth in half.

However, Mobius told Bloomberg he remains positive on the prospects for stocks in Pakistan.

"There will be an impact on growth but company valuations are very, very attractive now and therefore we continue to invest in Pakistan despite all the negatives," he says.

"The bottom line is that Pakistan is not going to go away. We want to buy stocks that look cheap as prices come down as a result of the flood."

The Karachi Stock Exchange 100 Index has dropped 9% this month, the worst performer among 93 global indices tracked by Bloomberg.

Mobius, who oversees about $34bn in emerging markets assets, says the group currently favours banks and energy companies within the country.