Investors Ignore Modi's Threat & Drive Pak Shares to New Highs

[RiazHaq]

http://www.riazhaq.com/2016/10/investors-ignore-modis-threats-to-drive.html

Indian Prime Minister Narendra Modi's threats of war and Pakistan's isolation have failed to deter investors as KSE-100 index made new highs this week. The key index of Pakistani shares closed at an all time high level of 41,412.04 points this week. Pakistan shares index has continued to outperform all regional and emerging market indices over the last 5 years.

Modi's Threats:

First came "boli nahi, goli" (Bullets, not talks). Then came "chappan inch ki chhaati" (56 inch chest, 44 actual according to Modi's tailor) and "Munh tor jawab (Jaw-breaking response) followed by threats of isolating Pakistan and claims of surgical strikes across the line of control in Kashmir.

Investors ignored all of Modi's bluster as just rhetoric and drove Pakistani shares to a new all-time record.

Source: Faseeh Mangi Bloomberg News

Market Performance:

To add insult to injury, the investment flow maintained Pakistan market as the best performer in the region with KSE-100 outperforming all regional and emerging market indices over the last 5 years.

As of Sept 30, 2016, KSE100 index, the PSX's key stock index, has gained almost 24 percent year to date making Pakistan the best performing market in Asia. Vietnam and Indonesia follow with returns of 18% and 16.8%, respectively, while India’s Sensex Index has gained only 6.7%.

Year-to-date, the Global X MSCI Pakistan ETF (PAK) has gained 21.7%, according to Barron's Asia.
Pakistan's shares are still selling at a big discount in terms of average price-earnings ratio of just 9.7 while other major indices in emerging markets like India are trading at much higher PE ratios of 15 or more.

A total of 576 companies are listed on the PSX, with an aggregate market cap of slightly higher than 8 trillion rupees (US$80 billion), according to Nikkei Asian Review. PSX market cap is just 28% of Pakistan's GDP of $280 billion.

ADB Pakistan Forecast:

The Asian Development Bank (ADB) has recently raised Pakistan's economic growth forecast for fiscal year 2017 (from July 2016 to June 2017) from 4.8% to 5.2%. The Bank also sees brighter outlook for the the entire South Asian region.

Summary:

Pakistan's economic recovery is in full swing with double digit growth in multiple industries, including auto, pharma, chemicals, cement, fertilizers, minerals, etc. It is expected to pick up steam over the next several years with new investments on the back of China-Pakistan Economic Corridor related projects.

Investors have brushed aside Indian Prime Minister Narendra Modi's threats against Pakistan to drive the shares index to a new record high. They have expressed strong confidence in Pakistan's economy to continue to perform well.


Related Links:

Haq's Musings

ADB Raises Pakistan GDP Growth Forecast

Is Pakistan Ready For War With India?

India's Israel Envy: Surgical Strikes in Pakistan?

Growing Middle Class in Pakistan

Rising Energy Consumption

China-Pakistan Economic Corridor

Pakistan's Thar Desert Sees Development Boom

Gwadar vs Chabahar Ports





http://www.riazhaq.com/2016/10/investors-ignore-modis-threats-to-drive.html

 

[Ram Mahadev]

Bhaijaan what is Modi s threat? . It's India's threat. Modi alone can't declare war its Indian Armed Forces. Your obsession on Modi is mind boggling.

No. Need to fear Modi this much he is son of Barath. He is doing what is good for his country.

 

[Stag112]

Stock market?

India improves world competitiveness ranking from 71 to 39 within two years since Modi took power.

Pakistan ranks 126th.

And it has nothing to do with Modi. It is because Pakistanis like the OP seem to think spin doctoring to selectively compare data without context is a real life substitute for sound understanding of economics.

Now I could recommend a good book or two to the poor blogger, but I think he has already read the one book he needed to read.

If I were dumb I would open a thread saying "Mumbai beats most world cities in real estate prices despite Pakistan sponsored 2008 terror attacks". But I am not THAT dumb. Actually most Indians are not.

 

[xyxmt]

Bhaijaan what is Modi s threat? . It's India's threat. Modi alone can't declare war its Indian Armed Forces. Your obsession on Modi is mind boggling.

No. Need to fear Modi this much he is son of Barath. He is doing what is good for his country.

same as someone says Washington warns Moscow, it does not mean the city of Washington is warning the city of Moscow.

 

[I S I]

 

[Chauvinist]

Charger choro..Chullo bhar pani do Modi ko ..Doob maren us main...!!

 

[RiazHaq]

Among Donald #Trump’s Biggest #US Fans: #Hindu Nationalists. #Modi #BJP #India

http://www.nytimes.com/2016/10/15/us/politics/indian-americans-trump.html?_r=0

As one of Mr. Trump’s biggest Hindu financial backers, Mr. Kumar, who runs an electronics manufacturing company in Illinois and grew up in the state of Punjab along the Pakistani border, has helped organize a speech by the Republican nominee in Edison, N.J., at a Bollywood-themed charity concert on Saturday. The proceeds will benefit terrorism victims.

“It will be an incredible evening,” Mr. Trump said in a video promoting it, one of the few ethnic events he has agreed to do during this campaign.

Mr. Trump may be largely indifferent to the reasons behind his Hindu loyalists’ fervor, but his most senior advisers are not. The campaign’s chief executive, Stephen K. Bannon, is a student of nationalist movements. Mr. Bannon is close to Nigel Farage, a central figure in Britain’s movement to leave the European Union, and he is an admirer of India’s prime minister, Narendra Modi, a Hindu nationalist Mr. Bannon has called “the Reagan of India.”

It may be pure coincidence that some of Mr. Trump’s words channel the nationalistic and, some argue, anti-Muslim sentiments that Mr. Modi stoked as he rose to power. But it is certainly not coincidental that many of Mr. Trump’s biggest Hindu supporters are also some of Mr. Modi’s most ardent backers.

At times, the similarity of Mr. Trump’s and Mr. Modi’s political vocabulary is striking. Mr. Modi fed the perception that India’s feckless leaders had failed to allow the country to reach its full potential. And he campaigned as the only one capable of fixing that.

“I will make such a wonderful India that all Americans will stand in line to get a visa for India,” he said once. A centerpiece of his agenda is the “Make in India” program, which is aimed at stimulating economic growth by encouraging more manufacturing in the country.

“It’s all about India first, or ‘Make India Great,’ ” said Sujeeth Draksharam, a civil engineer from Houston who supports Mr. Trump and planned to attend Saturday’s event. “Look at Donald Trump. It’s the same thing. ‘Make America Great Again’ — strong again.”

Another similarly powerful sentiment that both leaders have harnessed is grievance. Mr. Trump has seized on how the working class feels out of place and left behind in a country that is changing demographically and economically.

Even if Mr. Modi’s appeals were never as crass as Mr. Trump’s, his followers say he always understood that many Hindus felt their concerns were ignored by India’s secular and, in their minds, deeply corrupt government, which Mr. Modi vowed to clean up.

“One of the things that Modi very subtly articulated, but was very clear about, was something which nobody wanted to say,” said Subramanian Swamy, a longtime Indian politician and Hindu nationalist who is often a thorn in the side of the country’s political elite. “And that is that Hindus, despite being 80 percent of the population, feel like they got a raw deal.”

 

[RiazHaq]

#China refuses to support #India’s #NSG bid, #Azhar’s banning - The Hindu. #Pakistan #BRICSSummit http://www.thehindu.com/news/international/article9220338.ece …


On the eve of President Xi Jinping’s India visit, China on Friday stuck to its guns saying that there was no change in its stand on India’s Nuclear Suppliers Group membership bid and New Delhi’s attempts to get Jaish-e-Mohammad (JeM) chief Masood Azhar designated as a terrorist by the United Nations (UN).

As Mr. Xi is due to arrive in Goa on Saturday to take part in the BRICS Summit, Chinese Foreign Ministry Spokesperson Geng Shuang said the relations between India and China made “great headway” despite some “disputes” but there was no change in in Beijing’s stand on the issues of NSG and Azhar.

“I have stated China’s position. I would like to reiterate that the UN committee dealing with the listing does it according to provisions of the UN charter,” he said while replying to a question on India’s application to ban Azhar following the Pathankot terrorist attack.

1267 Committee line

Mr. Geng, at a briefing, said China maintained that 1267 Committee of the UN designated to ban terrorist outfits should work on true facts and make a decision according to consensus of its members.

“All parties are divided in listing of the relevant people. And this is why China has put on hold banning Azhar,” he said.

The second technical hold put by China will give enough time to make the listing decision, Mr. Geng has said, adding that this also shows the responsible and professional attitude of the Chinese side.

“China’s position has not changed regarding the joining of the NSG by India,” Mr. Geng said.

‘Need for consensus on NSG issue’

Speaking on the same issue earlier this month, China’s Vice Foreign Minister Li Baodong had harped on the need to build consensus over the admission of new members in the 48-member NSG.

Mr. Geng said that he wanted to “underscore” that in recent years China and India relations had been making “great headway” despite some “disputes.” He said that the “mainstream of bilateral relations has been positive” and “cooperation far outweighs competition.”

Mr. Geng has expressed hope that the two countries can continue with dialogue and cooperation to exchange views on some disputes, seek solutions and properly manage relevant disputes.

Expediting CPEC

Meanwhile, a Chinese scholar, Hu Shisheng, Director of the China Institutes of Contemporary International Relations affiliated to the Chinese Foreign Ministry, said China may speed up the construction of the $46 billion China-Pakistan Economic Corridor which passes through Azad Kashmir if Pakistan was isolated and cornered by India.

“China has to discuss with Pakistan about the current situation on how to handle and how to come out it,” Mr. Hu said speaking about Pakistan’s isolation in the region leading to the postponement of the SAARC summit after the Uri terror attack in which 19 Indian soldiers were killed.

“China has to further enhance relations with Pakistan if it feels cornered. A cornered regime some times will be more desperate, which will not be conducive to political development within Pakistan,” Mr. Hu said.

 

[ali_raza]

share market is a great scam

 

[RiazHaq]

#India Is Making A Mistake By Turning #BRICS Summit Into A #Pakistan Bashing Program. #Modi #Kashmir #China
http://www.huffingtonpost.in/2016/1...stake-by-turning-brics-summit-into-a-pakista/

Much before the BRICS heads of nations meet in Goa today, the western media had already begun writing about its live funeral, if not epitaph. Less than a decade into its existence, this economic grouping of newly industrialised countries--that account for about half of the world population and nearly a quarter of its combined GDP--seems to be losing its relevance other than being a feel-good club.

At its eighth annual meeting in Goa, BRICS is making headlines in India, not for any economic cooperation and growth, but for geopolitics. If the seventh summit at Ufa in Russia last year was about the much celebrated BRICS Bank (New Development Bank) and contingent reserve arrangement, all that we hear about the eight summit in Goa is geopolitics: terrorism, military cooperation with Russia and isolation of Pakistan. And it's India that's mostly talking.

--------


India using SAARC for ridiculing Pakistan or even undermining its convening rights is the swat, BRICS is the sledgehammer. Instead of development planners and finance ministry bureaucrats, it's going to be an Ajit Doval show. At least that's what Indian media reports indicate. Apparently he and his officials will push for "a strongly worded counterterrorism statement and a declaration that will highlight isolating countries that provide shelter to terror groups and help in arming these groups". The summary of this statement is two words: isolate Pakistan. Is that what BRICS means to India?

And how does it even matter? Will Russia and China, the only BRICS countries that are of consequence to the south Asian geopolitics, will ever do anything? Certainly not. Pakistan is China's strategic asset and Russia, a self-interested voluntary ally against American strategy of using India as its Asian pivot. Brazil and South Africa are so far away and don't even have enough money or political resources for themselves.

Therefore, making BRICS a proxy opportunity to bash Pakistan is a little excessive. If India has been clever and strategic, it should have used it for strengthening the idea of BRICS, when the whole world is justifiably sceptical. Isolation of Pakistan should have been just the incidental message that India would have anyway conveyed by inviting BIMSTEK (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation), that Pakistan is not a part of.

-------


Showing off on the BRICS platform, at least for the time being, doesn't mean much because the global media have almost written it off with disappointing growth projections for Brazil, South Africa and Russia and competing interest by China.

India could have done by less theatre and more substance. Repetition of lines to keep people in perpetual anticipation, national pride and false-hopes, not just in dealing with Pakistan, but also in improving their lives, seems to have become a habit. And it has started showing everywhere as a standard, Indira-era Indian imprint.

 

[RiazHaq]

What next 4 #Pakistan, #Asia's best-performing stock market? It's already up 27% year-to-date #Karachi http://bloom.bg/2eJBggc via @markets

Pakistan has plowed an independent trajectory this year, outperforming both its fellow frontier markets and members of the emerging-market grouping that it is slated to join in 2017.

The country's benchmark KSE100 Index has rallied 27 percent year-to-date to become Asia’s best-performing equity market in 2016, according to a basket of 26 peers tracked by Bloomberg. The market received a boost in June when MSCI Inc. announced that it would reclassify Pakistan as part of its benchmark emerging-market index from May 2017 — a show of confidence that it declined to extend to China.

It was a long time coming for South Asia's second-largest economy. The Pakistan Stock Exchange, previously known as the Karachi Stock Exchange, was downgraded to frontier-market status in 2009 after it introduced curbs against sell orders to stem an investor exodus in late 2008.
After registering gains over seven of the eight years since, investors are betting it still has further to climb.

"The benchmark index can easily reach 60,000 before the general election in 2018," said Vasseh Ahmed, who's chief investment officer of Karachi-based Faysal Asset Management Ltd., in an interview. That represents almost a 50-percent increase from present levels. "Now that the IMF program is over, the government will be giving incentives that will positively impact the market and business sentiment. The boost from the upgrade and Chinese investment is also there.".

The KSE100 Index reached its all-time peak of 41,464.31 last Friday, and by 2:23 p.m. in Karachi was heading toward a new record. Last month Pakistan completed a three-year $6.6 billion International Monetary Fund loan program. Thanks to the aid, Prime Minister Nawaz Sharif was able to avert a balance-of-payments crisis and boost foreign-exchange reserves to a new high.

"Textile is already seeing the push, and the government may further boost the agriculture sector. The banking sector will also rebound given interest rates have bottomed, while the oil and gas sectors are rallying following a recovery in energy prices and infrastructure development," added Ahmed. The country's central bank has held its benchmark interest rate at 5.75 percent since cutting by 25 basis points in May.
For Federico Parenti, Milan-based fund manager of Base Sicav Emerging and Frontier Markets Equity Fund, Pakistan is on top of his wish-list.
"My fund is currently waiting to get access to such a beautiful and nice market," Parenti said by e-mail. "At the moment Pakistan access is delayed due to fear of political and religious risks, but I think staying just in Europe for investment and thinking other places won't change for the better is a bigger risk."

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For Parenti, the improvements that are predicted by EFG Hermes to lure around $475 million of inflows by the middle of next year do, in themselves, carry risks.
"Because of the MSCI upgrade, the ratio of foreigners holding onto Pakistani stocks is set to increase," the fund manager said. "But they will also add volatility since most of the money is 'disloyal,' meaning that they can easily pull their money out of the country whenever they want."

Still, he said he plans to allocate 10 percent of his funds to Pakistan once regulators give the go-ahead, with these challenges failing to overwhelm to the country's enticing demographics. "The prospect is bright with the growing young population and the rising middle class. I want a piece of your economy — a piece of your frozen food, a piece of your cement, and a piece of your hospitals," he wrote.

 

[RiazHaq]

5-Year Stock Performance: #India #SENSEX up 65% vs #Pakistan #KSE100 up 293% https://www.bloomberg.com/quote/KSE100:IND … pic.twitter.com/LFu5ipOFKc

 

[war&peace]

Nobody gives a rat's rear to the rants of this ugly and stinky creature

 

[Clutch]

If I were dumb I would open a thread saying "Mumbai beats most world cities in real estate prices despite Pakistan sponsored 2008 terror attacks". But I am not THAT dumb. Actually most Indians are not.

Yes, i agree that would be dumb.... Especially considering pakistan had nothing to do with the Mumbai attacks.

 

[Aamir Siddiqui]

Guyz....Don't worry about CPEC.. CPEC is in safe hands... Insha ALLAH it will become the game changer..