Frontier Stocks Poised to Build on Best First Half Since 2007

Frontier-market stocks are poised for more gains after their strongest first half in 18 years, strategists said.

MSCI Inc.’s gaugeof 25 smaller and less liquid equity markets advanced 17% in the first six months of the year, its biggest rally for that period since 2007. The advance was underpinned by a weaker dollar, relative insulation from global risks and the reduced threat of an oil-price spike.

Investors have pumped funds into frontier nations such as Vietnam and Morocco as they chase higher returns and options outside the US, where unpredictable trade policies and rising debt levels have spooked markets. ...