Pakistan emerges as second best performing market in Asia

Published: October 20, 2011
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Corporate earnings and reduction in interest rates helped equities so far in 2011 amongst the Asian Emerging and Frontier markets tracked by MSCI. PHOTO: REUTERS/FILE

Corporate earnings and reduction in interest rates helped equities so far in 2011 amongst the Asian Emerging and Frontier markets tracked by MSCI. PHOTO: REUTERS/FILE

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.

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Reader Comments (27)

  • ukmuslim
    Oct 20, 2011 - 1:38AM

    to be honest, i don’t know which global or blue chip companies are listed on kse.

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  • Pakistani
    Oct 20, 2011 - 1:54AM

    IMPOSSSSIBLE! That would be merely because of all the aid flowing in Pakistan.

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  • Peace
    Oct 20, 2011 - 2:12AM

    An economist’s comments on this news item are awaited.

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  • Ali
    Oct 20, 2011 - 5:50AM

    Now, how the hell on earth is that possible? Will some economist please explain this to all of us ignorant lot?

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  • foruchandan
    Oct 20, 2011 - 7:14AM

    tell me its not a joke rofl….

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  • Mirza
    Oct 20, 2011 - 8:19AM

    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.

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  • ex
    Oct 20, 2011 - 8:32AM

    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

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  • ex
    Oct 20, 2011 - 8:33AM

    @Pakistani:
    cash aid has beeen 8 billion over 10 years ! war on terror has cost 70 billion
    most us aid is just trainingRecommend

  • Oct 20, 2011 - 9:17AM

    Wow….

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  • Word Life
    Oct 20, 2011 - 9:34AM

    … 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 …

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  • xxx
    Oct 20, 2011 - 10:03AM

    @ex:
    carry on

    just look at the growth rate of india
    from 1947-1989

    …. err riazhuq fan??!

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  • xxx
    Oct 20, 2011 - 11:21AM

    @ex:

    Pakistan Zindabad….I know its hard for
    indians to accept what bollywood
    taught was wrong

    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??

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  • Oct 20, 2011 - 12:27PM

    Nice barometer for economic progress. Someone need to re-read economics 101.

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  • Faraz
    Oct 20, 2011 - 12:51PM

    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.

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  • Gautam
    Oct 20, 2011 - 2:04PM

    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.. :-)

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  • antanu g
    Oct 20, 2011 - 5:37PM

    @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 .

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  • kachookooma
    Oct 20, 2011 - 6:01PM

    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.

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  • Saman
    Oct 20, 2011 - 6:57PM

    well done Pakistan

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  • BruteForce
    Oct 20, 2011 - 9:06PM

    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?

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  • Oct 20, 2011 - 9:42PM

    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.

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  • A.Khan
    Oct 20, 2011 - 9:52PM

    just leave Pakistan alone and it will stand on its own. we have some superb people working in business areas

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  • tit for tat
    Oct 20, 2011 - 10:27PM

    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……..

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  • Falcon
    Oct 20, 2011 - 10:42PM

    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.

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  • optimist
    Oct 21, 2011 - 3:40AM

    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!

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  • FJ
    Oct 21, 2011 - 1:18PM

    Stock Market is nothing but a venue for Financial Politics

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  • Sahar
    Oct 21, 2011 - 4:33PM

    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

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  • XX
    Oct 22, 2011 - 1:32AM

    We fell by a smaller margin because we had never increased much in the first place.

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