Pakistan Stock Market is the World's Best Performer Over 1 Year & 5 Years

[RiazHaq]

http://www.riazhaq.com/2016/12/pakistan-stock-market-is-worlds-best.html

Pakistan's KSE100 (Karachi Stock Exchange 100) index closed the year 2016 as the world's best performing stock market index over one-year and five-year periods, according to data available from Bloomberg. It has not only outperformed India's Sensex index but also the Morgan Stanley Emerging Markets index.


Source: Bloomberg


Pakistan's key index KSE-100 has rocketed up nearly 46% in 2016, far outpacing India's Sensex's 2.57% rise and MSCI emerging market's 8.42% increase. Similarly, over 5 year period, KSE-100 has soared 321% vs India's Sensex rise of 72% and Morgan Stanley emerging market index decline of 7.72%.


Source: Bloomberg


Pakistani stock market gains are driven by multiple factors. Dramatically improved security has brought investors and accelerated the nation's GDP growth. Adding to that is the optimism accompanying Morgan Stanley's decision to bring Pakistan back into its emerging market index that has spurred more buying by foreign index fund managers.

Other major indicators such as rising cement and energy consumption as well as growing sales of motorcycle and automobiles. A big driver of these improvements is the Chinese commitment of more than $50 billion to finance China Pakistan Economic Corridor (CPEC).

China-Pakistan Economic Corridor (CPEC) is expected to add over 2 million direct and indirect jobs to Pakistan's economy and boost the country's GDP growth rate to 7.5%. If all goes well and on schedule, of the 21 agreements on energy– including gas, coal and solar energy– 14 will be able to provide up to 10,400 megawatts (MW) of energy by March 2018. According to China Daily, these projects would provide up to 16,400 MW of energy altogether. In addition, there will be roads, rail tracks and oil and gas pipelines stretching thousands kilometers to connect Pakistan's Arabian sea ports to landlocked Western China.

After years of underinvestment and slow growth, Pakistan is finally seeing a lot of investment and development activity. 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. The challenges to sustain this growth ranging are many, among the biggest are continuous improvement in security, maintaining political stability and timely execution of projects.

Related Links:

Haq's Musings

China-Pakistan Economic Corridor

Investors Undeterred By Modi's Threats to Isolate Pakistan

ADB Raises Pakistan GDP Forecast

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/2016/12/pakistan-stock-market-is-worlds-best.html

 

[Zaahir]

http://www.riazhaq.com/2016/12/pakistan-stock-market-is-worlds-best.html

Pakistan's KSE100 (Karachi Stock Exchange 100) index closed the year 2016 as the world's best performing stock market index over one-year and five-year periods, according to data available from Bloomberg. It has not only outperformed India's Sensex index but also the Morgan Stanley Emerging Markets index.


Source: Bloomberg


Pakistan's key index KSE-100 has rocketed up nearly 46% in 2016, far outpacing India's Sensex's 2.57% rise and MSCI emerging market's 8.42% increase. Similarly, over 5 year period, KSE-100 has soared 321% vs India's Sensex rise of 72% and Morgan Stanley emerging market index decline of 7.72%.


Source: Bloomberg


Pakistani stock market gains are driven by multiple factors. Dramatically improved security has brought investors and accelerated the nation's GDP growth. Adding to that is the optimism accompanying Morgan Stanley's decision to bring Pakistan back into its emerging market index that has spurred more buying by foreign index fund managers.

Other major indicators such as rising cement and energy consumption as well as growing sales of motorcycle and automobiles. A big driver of these improvements is the Chinese commitment of more than $50 billion to finance China Pakistan Economic Corridor (CPEC).

China-Pakistan Economic Corridor (CPEC) is expected to add over 2 million direct and indirect jobs to Pakistan's economy and boost the country's GDP growth rate to 7.5%. If all goes well and on schedule, of the 21 agreements on energy– including gas, coal and solar energy– 14 will be able to provide up to 10,400 megawatts (MW) of energy by March 2018. According to China Daily, these projects would provide up to 16,400 MW of energy altogether. In addition, there will be roads, rail tracks and oil and gas pipelines stretching thousands kilometers to connect Pakistan's Arabian sea ports to landlocked Western China.

After years of underinvestment and slow growth, Pakistan is finally seeing a lot of investment and development activity. 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. The challenges to sustain this growth ranging are many, among the biggest are continuous improvement in security, maintaining political stability and timely execution of projects.

Related Links:

Haq's Musings

China-Pakistan Economic Corridor

Investors Undeterred By Modi's Threats to Isolate Pakistan

ADB Raises Pakistan GDP Forecast

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/2016/12/pakistan-stock-market-is-worlds-best.html

Tomorrow if Nepal opens a stock exchange with 10 stocks and a benchmark at 100 and it grows to 200 in a quarter then statistically Nepal would be the best performing market in the world with 100% return in a quarter. Don't make a fool out of your countrymen with half baked stories. Look at KSE market Cap - $90 billion? with most stocks trading in low volumes. BSE market cap is more than $1500 billion. Have you studied the base effect?
The market Cap of Tata Consultancy Services alone is $70 bn. Ring any bells?

 

[Areesh]

Tomorrow if Nepal opens a stock exchange with 10 stocks and a benchmark at 100 and it grows to 200 in a quarter then statistically Nepal would be the best performing market in the world with 100% return in a quarter. Don't make a fool out of your countrymen with half baked stories. Look at KSE market Cap - $90 billion? with most stocks trading in low volumes. BSE market cap is more than $1500 billion. Have you studied the base effect?
The market Cap of Tata Consultancy Services alone is $70 bn. Ring any bells?

Stop moaning and invest in PSX for better returns.

 

[MULUBJA]

So china has the 40% ownership of the world's best performing stock market now. Congratulation to pakistan and china both.

 

[Zaahir]

So china has the 40% ownership of the world's best performing stock market now. Congratulation to pakistan and china both.

China might soon own 40% of everything in Pakistan.

 

[Areesh]

China might soon own 40% of everything in Pakistan.

You shouldn't bother. Better be a good baniya and invest in PSX if you want better returns.

Looks like new generation of baniyas is only good in trolling on internet forums.

 

[Hammad Arshad Qureshi]

China might soon own 40% of everything in Pakistan.

It's our country and our rules . We do whatever we want to do. You Indian dont like it then get lost.

 

[newb3e]

China might soon own 40% of everything in Pakistan.

Better than mouthful of american pubic hairs indians!

 

[Areesh]

Tomorrow if Nepal opens a stock exchange with 10 stocks and a benchmark at 100 and it grows to 200 in a quarter then statistically Nepal would be the best performing market in the world with 100% return in a quarter. Don't make a fool out of your countrymen with half baked stories. Look at KSE market Cap - $90 billion? with most stocks trading in low volumes. BSE market cap is more than $1500 billion. Have you studied the base effect?
The market Cap of Tata Consultancy Services alone is $70 bn. Ring any bells?

By the way you can continue to suck tattas of Tata. Meanwhile in real world:

 

[Zaahir]

By the way you can continue to suck tattas of Tata. Meanwhile in real world:

View attachment 364711

You didn't understand a bit of what i said above..did you . Never mind...not your fault..it's the education...or lack of it...and by the way...
These tattas of tata are worth half your country's gdp..if you had grown some like these you won't need to borrow from papa China.

 

[Areesh]

You didn't understand a bit of what i said above..did you . Never mind...not your fault..it's the education...or lack of it...and by the way...
These tattas of tata are worth half your country's gdp..if you had grown some like these you won't need to borrow from papa China.

I understood everything what you said. It is same old bullsh!t of supa puwa india by a delusional fool from this country.

I just gave you a hint of what is happening in real world.

Now go invest in PSX and prove yourself to be a good banya.

 

[AyanRay]

You shouldn't bother. Better be a good baniya and invest in PSX if you want better returns.

Looks like new generation of baniyas is only good in trolling on internet forums.

With market cap of just USD90 billion, you just don't have enough for us baniyas to invest. The 5 most richest man in India can buy 100% stake in all of the companies listed at PSX, are you Ok with that? Furthur with such low credit ratings, who would risk his investments.
Just a few years ago trading at your stock exchanges were stopped by the govt and there was sort of rioting by the investors, that's how valatile your stock exchanges are.

And lastly, a newly set up kirana shop near my place has doubled its sales over the last year. Seems he is doing better than PSX. Next time try comparing yourself with someone of your level. Maybe start Bangladesh's stock exchange.

 

[Chichago_bulls]

I am be waiting for a real market correction in PSX. The greater the height the stronger will be the impact of fall. LOL

 

[Areesh]

Furthur with such low credit ratings, who would risk his investments.

Everyone except banyas with deteriorating IQ who also voted a foolish chai wala as their PM.

 

[truthseeker2010]

Tomorrow if Nepal opens a stock exchange with 10 stocks and a benchmark at 100 and it grows to 200 in a quarter then statistically Nepal would be the best performing market in the world with 100% return in a quarter. Don't make a fool out of your countrymen with half baked stories. Look at KSE market Cap - $90 billion? with most stocks trading in low volumes. BSE market cap is more than $1500 billion. Have you studied the base effect?
The market Cap of Tata Consultancy Services alone is $70 bn. Ring any bells?

PSX's p/e is still far below than BSE and other emerging markets.......

I invested all my money in Brazil and Russia...They don't have bomb blasts every other day..My investment is safe there. thanks

it shows that even u don't have faith in ur own domestic markets..... and ur commenting on others..........