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

[AyanRay]

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

Dear Sir, don't you even feel ashamed comparing a Stock Exchange with USD80 to 90 billion market capitalisation, with a Stock market having more than USD1.5 triilion market capitalisation. And if you add our BSE and NSE, they both have a total of USD 3trillion in market capitalisation. Please stay within your standards.

 

[AntiToxic]

Uncle.....Can you please also explain about Pakistan's falling exports , piling up loans and using foreign loans to
show increasing reserves with graphs and tables in which you are good at ???

 

[DrPuff]

Heck of an idiot!! What kind of idiots read these articles!
Bigger economy will always have lower growth rate..
Don't even compare India to Pakistan..

 

[Stag112]

@HRK what is up with you guys actively promoting filthy language? Have Pakistanis run out of substance?

@WAJsal are you noticing anything? The forum is full of abuse and even pointing it out has been getting me multiple negative ratings while extremely explicit abusive posts just above mine remain untouched by Pakistanis title holders.

 

[kamrananvaar]

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.

son of _____
he is a terrorist , period

Heck of an idiot!! What kind of idiots read these articles!
Bigger economy will always have lower growth rate..
Don't even compare India to Pakistan..

ahmmmm u do
hahahaaaa

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.

would agree on most points except that modi had anything to do with india prosperity and
its INDIA that is sponsoring terrorism not the other way round

Uncle.....Can you please also explain about Pakistan's falling exports , piling up loans and using foreign loans to
show increasing reserves with graphs and tables in which you are good at ???

bro u r an indian and should have a very good concept of corrupt politicians , u have managed to contain them , wheras we are trying to do so

Dear Sir, don't you even feel ashamed comparing a Stock Exchange with USD80 to 90 billion market capitalisation, with a Stock market having more than USD1.5 triilion market capitalisation. And if you add our BSE and NSE, they both have a total of USD 3trillion in market capitalisation. Please stay within your standards.

nah never ashamed , one can dream and try to be inspired
good luck to you hope u reach ever more than 3 trillion , and hope our countryman beat u to it

 

[DrPuff]

son of _____
he is a terrorist , period


ahmmmm u do
hahahaaaa


would agree on most points except that modi had anything to do with india prosperity and
its INDIA that is sponsoring terrorism not the other way round


bro u r an indian and should have a very good concept of corrupt politicians , u have managed to contain them , wheras we are trying to do so


nah never ashamed , one can dream and try to be inspired
good luck to you hope u reach ever more than 3 trillion , and hope our countryman beat u to it

Read you comment again.. Stop giving non substantial moronic one liners. Don't get how can a Pakistani giving use education over corruption & extremism..
According to you fellas who are not terrorist! You people term terrorists as NGO workers & UN certified masterminds are roaming freely under your political umbrella..
You are clueless about the ground reality of your own land.. It's pretty much run by Loans with hundreds of billions of debts, more than GDP..

 

[kamrananvaar]

Read you comment again.. Stop giving non substantial moronic one liners. Don't get how can a Pakistani giving use education over corruption & extremism..
According to you fellas who are not terrorist! You people term terrorists as NGO workers & UN certified masterminds are roaming freely under your political umbrella..
You are clueless about the ground reality of your own land.. It's pretty much run by Loans with hundreds of billions of debts, more than GDP..

what do u want an essay
facts are facts , u cannot deny them
and MODI is a terrorist that sponsors terrorism activity in pakistan

 

[DrPuff]

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

World thinks other way around.Don't think we are out of stock with such potty mouth.. Try to learn how to be civilized & respect individual..

what do u want an essay
facts are facts , u cannot deny them
and MODI is a terrorist that sponsors terrorism activity in pakistan

Like Pakistan is promoting as pinnacle of humanity..
Who gives funding to Hizbul,Talibal,JeM,LeT & such terrorist groups? You have a long history.

 

[SarthakGanguly]

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.”

Hindus, Jews, Parsis, Sikhs, Buddhists, Christians, Atheists all are conspiring against you guys.
That is heart breaking.

 

[Green Ranger]

This stock game in pakistan is rigged , they create bubble and it bursts

Look at our currency getting de valued daily , dollar is record high these days

 

[Aamir Siddiqui]

World thinks other way around.Don't think we are out of stock with such potty mouth.. Try to learn how to be civilized & respect individual..


Like Pakistan is promoting as pinnacle of humanity..
Who gives funding to Hizbul,Talibal,JeM,LeT & such terrorist groups? You have a long history.

Yes we have a long History, but i think you never learn from history... India is supporting and funding the above terrorist groups.. go and check the history, not browser history..

 

[Sully3]

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.

what an absolutely idiotic post.

Modi declared war on paksitan through international isolation and other things he said like freedom for balocistan and gilgit. The so called surgical strikes, pakistans isolation and other anti pakistan things he said have superbly back fired at him, especially with the western media who time and time again called his bluff on the surgical strikes case and everyday its pretty evident that pakistan isn't isolated at all in the world. the only countries that seem to have an issue with pakistan is Afg, Bangla and India other then that Modi has completely failed to isolate pakistan.

 

[DrPuff]

Yes we have a long History, but i think you never learn from history... India is supporting and funding the above terrorist groups.. go and check the history, not browser history..

Don't be mental.. Those mentioned groups work against India. What would India gain by supporting them??LeT hafiz saed also funded by India??
DON'T BE FULL RETARD

 

[Aamir Siddiqui]

Don't be mental.. Those mentioned groups work against India. What would India gain by supporting them??LeT hafiz saed also funded by India??
DON'T BE FULL RETARD

Don't talk like fools, everybody knows who are funding and using the TTP / BrA / BLA against Pakistan and who is providing the explosive materials to ISIS..

 

[Stag112]

Don't talk like fools, everybody knows who are funding and using the TTP / BrA / BLA against Pakistan and who is providing the explosive materials to ISIS..

* everybody = local madrassa Ghazwa E Hind book reading club.

Your stupidity is so deep that you think India supplies explosives to ISIS? By that logic any terrorist today is supported by China because most things are China made today.

Now don't think I don't know you are incapable of understanding stuff like reason, reasonableness etc etc. I do. I did not actually post that in the hope of turning around your life. So ignore it and go back to learning by rote.