KARACHI: Despite security concerns, tense relations with the US and economic slowdown, Pakistan’s stock market has managed to rank as the second best performing market in Asia after Indonesia in 2011 so far, according to a Topline Securities research note.
Corporate earnings and reduction in interest rates helped equities so far in 2011 amongst the Asian Emerging and Frontier markets tracked by MSCI, adds the note.
Resurgence of US crisis coupled with headwinds in eurozone saw huge selling in global equity markets as risk-averse offshore investors moved to safe heavens. The MSCI All Country World Index has slumped by 8% in 2011 till October 18 on concerns about the world economy and the lack of any credible solution to Europe’s debt issue, the reason also why most Asian Emerging and Frontier markets have posted negative returns so far in 2011.
Moreover, except the Indonesian market, all markets in MSCI Asian Emerging and Frontier markets are down 5% to 39% with India and China, the two leading markets falling by 26% and 24%, respectively.
Interestingly, Pakistan with a fall of 5% is so far the second best performing market amongst these 12 countries.
Due to fear of another recession, the benchmark MSCI Word Index is down 8%. Emerging and frontier market indices also followed by falling 18% and 25%, respectively
Published in The Express Tribune, October 20th, 2011.
COMMENTS (27)
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We fell by a smaller margin because we had never increased much in the first place.
I think its important to view a stock market, not just by the percentage gains but actually by how much volume is traded. If merely on avg 60-70 million shares get traded daily, that shows that there is NO real interest of ANYONE in the stock market. And i think that holds true for the Karachi Stock Exchange
Stock Market is nothing but a venue for Financial Politics
I never see Indians debating negative news about Pakistan. They readily agree and add to it. . Whenever there is a good news, they even resort to fake names just to malign Pakistan. . And then they expect us to be friendly towards a nation that hates us soooooooo much!
A quick look at KSE Wikipedia information shows that we had 654 companies listed with $120.5 Billion market cap in Dec.2009. As of recently, the market cap has been reduced to $35 Billion. That is 71% market cap decline in just one and a half year! Putting it simply, if we chop off 7 trees out of 10 and groom the rest of the three boasting slightly better results, we aren't doing that great of a job. Had Govt. focused on private sector productivity after Musharraf's departure, we would have been in a better shape. These numbers are misleading at best.
i thought only shareef's are busy in making false claims and cheap popularity through dengue banners and spray in one or two homes.....now the fed govt. is coming up with similar publicity stunts........
just leave Pakistan alone and it will stand on its own. we have some superb people working in business areas
This is good news for our ears. While industries shutdown because of power problems, trains cancelled due to lack of funds, unable to pay salaries to government employees, foreign investments not forthcoming, floods in half of the country and govt unable to provide them shelter, huge expenditure on military, are we shining or diminishing. Statistics are different from reality.
Whats the use if the Country is dependent on Aid and the economy is growing at a measly 2.5%? Whats the use if the Country is not able to create enough jobs to satisfy even the people coming out into the job market every year?
How many % of Pakistan dabble in the Share Market?
well done Pakistan
Indian commentators as usual cringing. They dont understand this financial indicator shows performance, not the size. Pakistan also has a better Public debt to GDP ratio than India but the size of economy is smaller..There are numerous ways to check health of a nations economy you do good at some and not tat well with others. If you start spending more time on your own newspaper sites , you'll be having fewer concerns here.
@Gautam: u r wrong. just google through KSE listings and u will find many blue chip cos. dont forget...pak has the potential...in 1960s pakistani economic model was being taught in US .
Hit will come to markets which are globally linked..India and china... KSE may not have taken hit as not many Bluechip and biggies had put their money in Pak. BTW how much is total worth of KSE..i believe not more then few millions !! So if you don't have money you will never loose that.. :-)
Why you people saying this Impossible without reading and analysing??
,As measured by the MSCI Indices. Over 20 percent growth in corporate earnings and reduction in interest rates helped Pakistan equities so far in 2011 amongst the Asian Emerging and Frontier markets tracked by MSCI. Experts said that almost all markets in MSCI Asian Emerging and Frontier markets showed declining trend, as India and China, the two major markets were down by 26 percent and 24 percent, respectively, only Indonesian market in 2011 showed 3% rise and following Indonesian market Pakistan with negative 5 percent return becomes the second best performing market amongst 12 countries in Asia.
Only i can "SAD" for your views you guys making comments.
Nice barometer for economic progress. Someone need to re-read economics 101.
@ex:
oww?? that means china also hit by bollywood??? why are you dragging India into this? so here one for you- i am traveling in a train of speed 100km/hr, and i am walking at a speed of 6km/hr backward, you are traveling in a train of speed 20km/hr and running at a speed of 30km/hr, what is the overall result??
@ex: carry on
.... err riazhuq fan??!
... except the Indonesian market, all markets in MSCI Asian Emerging and Frontier markets are down 5% to 39% with India and China, the two leading markets falling by 26% and 24%, respectively ...
Wow....
Pakistan Zindabad....I know its hard for indians to accept what bollywood taught was wrong just look at the growth rate of india from 1947-1989
We are never number two I am shocked. I thought we are always number one! Eat your heart out all the rich and large economies. Nice one, we all need a laughter.
tell me its not a joke rofl....
Now, how the hell on earth is that possible? Will some economist please explain this to all of us ignorant lot?
An economist's comments on this news item are awaited.
IMPOSSSSIBLE! That would be merely because of all the aid flowing in Pakistan.
to be honest, i don't know which global or blue chip companies are listed on kse.