Pakistan's Karachi Stock Exchange to Perform Well in 2011
- Thread starter RiazHaq
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As some one said, 2/3 of listed company belongs to military. So no accountability. Who will invest.
Patrician
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Hey Ram!
Supidity galore.
Mr. Haq, it might give youo solace by comparing KSE to BSE but trust me you're just making a fool out of yourself.
Military-owned businesses are a tiny fraction of KSE market cap.
As to the size of the KSE market cap of $35 billion, it's reasonable fraction of Pakistan's GDP of $180 billion, and makes it really attractive for investors in terms of valuation. Sensex market cap of $1.6 trillion, OTOH, is a sure sign of trouble for a nation with $1.5 trillion GDP. It's clearly overvalued, and in bubble territory. That's why it's among the worst performing markets this year, down 9% so far.
Markets | The Economist
Punjabbi Munda
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Mr.Haq Whats your take on the recent trend?
FII trend shows Sensex may hit all-time high by 2011 end
Sensex might hit an all time high!
BTW,does it really make sense to compare KSE and BSE keeping their extreme large differences in mind? Its like comparing a local cat to a tiger.
FII trend shows Sensex may hit all-time high by 2011 end
Sensex might hit an all time high!
BTW,does it really make sense to compare KSE and BSE keeping their extreme large differences in mind? Its like comparing a local cat to a tiger.
kawaraj
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Second that.
The US is conducting Tax Cut soon, aiming to bring more MNLs money back home. If that happens, Not only Sensex drains, the whole Indian bubble is bursting.
Punjabbi Munda
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lol read the post above yours,sensex is doing well and may well hit an all time in 2011 end,your self made expertise is not needed.
kawaraj
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really? let's see then....
KSE 100 : PERFORMANCE DURING JANUARY - JUNE 2011 :
January 03, 2011 : 11,849
February 01, 2011 : 12273.38
March 01, 2011 : 11608.43
April 01, 2011 : 11885.64
May 02, 2011 : 12035.89
June 01, 2011 : 12264.06
There Endth the Lesson
January 03, 2011 : 11,849
February 01, 2011 : 12273.38
March 01, 2011 : 11608.43
April 01, 2011 : 11885.64
May 02, 2011 : 12035.89
June 01, 2011 : 12264.06
There Endth the Lesson
Rafi
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Pakistan's key share index KSE-100 was just over 1000 points at the end of 1999, and it closed at over 9727.40 on Dec 31, 2009. Pakistan rupee remained quite stable at 60 rupees to a US dollar until 2008, slipping only recently to about 80 rupees to a dollar. In spite of the currency decline, Pakistan's KSE-100 stock index surged 55% in 2009 in US dollar terms and 65% in rupee terms. During the same period of 1999-2009, Mumbai Sensex index moved from just over 5000 points to close at 17,464.81. If you had invested $100 in KSE-100 stocks on Dec. 31, 1999, you'd have over $900 today, while $100 invested in the Mumbai's Sensex stocks would be worth $274. Investment of $100 in emerging-market stocks in general on Dec. 31, 1999, would get you about $262 today, while $100 invested in the S&P500 would be worth $91.
Pakistan's KSE-100 stock index surged 55% in 2009 in US dollar terms and 65% in rupee terms, in a year that also saw the South Asian nation wracked by increased violence and its state institutions described by various media talking heads as being on the verge of collapse. Even more surprising is the whopping 825% increase in KSE-100 from 1999 to 2009, which makes it a significantly better performer than the BRIC nations. BRIC darling China has actually underperformed its peers, rising only 150 percent compared with energy-rich Brazil (520 percent) and Russia (326 percent) or well-regulated India (274 percent), which some investors see as a safer and more diverse bet compared with the Chinese equity market, which is dominated by bank stocks. This is the kind of performance that has got the attention of some of the top investors and investment firms around the world.
notsuperstitious
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Stock exchange is a barometer of the price performance of stocks of companies who have bothered to list with that exchange only.
Stock index is a representative selection of some of those stocks only.
Stock prices are not governed by a science, they depend on sentiment.
Comparing that while ignoring hard real numbers would however be very much justified given the tendency to scrape the bottom.
Stock index is a representative selection of some of those stocks only.
Stock prices are not governed by a science, they depend on sentiment.
Comparing that while ignoring hard real numbers would however be very much justified given the tendency to scrape the bottom.
I don't believe that you guys (Indians) are arguing with a moron like him. Seriously comparing BSE with KSE, that too over a period of days and weeks? I don't understand how can someone be so marvelously idiot Mr Haq. This forum seriously needs an IQ meter too right below the flags so that one can have fruitful discussions with sane people only. 
Here's a recent Washington Post story on slowdown in India:
....In developments that parallel events in the other Asian powerhouse, neighboring China, rising prices have forced the government to steadily tighten monetary policy. Interest rates rose for the 10th time in 16 months last week.
But business leaders are unhappy. They say the medicine could be making the economic situation worse.
Much of the inflation in India is a function of higher oil and food prices, factors that respond poorly, if at all, to higher interest rates. Instead of depending on the central bank, the government needs to push through the kind of agricultural reforms and investment it has been talking about for years, analysts say.
“Government policy should be focused on improving agricultural productivity, but because that isn’t happening, the burden is falling more and more on monetary policy,” said Sanjay Mathur, Royal Bank of Scotland’s Asia emerging markets economist in Singapore. “Consequently, a number of sectors that shouldn’t be getting hurt are getting hurt.”
That means growth could fall back toward 7 percent, some economists warn, still faster than that of any major economy except China but below what India could achieve — and needs, if it is to pull hundreds of millions of people out of poverty.
“There is no point substituting one bad policy with another bad policy,” said Surjit Bhalla, chairman of Oxus Investments. “When the patient is down, don’t give him another kick in the pants.”
In the early 1990s, India’s government pushed through a series of economic reforms that unshackled the private sector and laid the foundation for two decades of strong growth. With that growth has come rising incomes, an expanding middle class and changing eating patterns. No longer dependent solely on rice, lentils and grains, Indians are demanding more vegetables, fruit, eggs, meat and fish.
Local agriculture has not kept pace. Farmers grow the wrong mix of crops, and about 40 percent of production is wasted before it reaches market because of inadequate distribution, warehousing and cold-storage systems.
Add to the mix a rural employment scheme that has boosted the incomes and appetites of India’s poorest, and a demographic bulge in hungry 15- to 24-year-olds, and it is little surprise that food prices are rising steadily year by year.
That in turn has pushed up wages, while production of raw materials such as coal, ores and cotton is also struggling to keep up with rising demand. Inflation hit 9.1 percent in May, and the central bank says it is expected to remain high through at least September.
To get food prices down, the government needs to promote horticulture and revolutionalize agricultural marketing and distribution, economists say. Allowing foreign companies such as Wal-Mart to set up supermarkets in India and invest in cold-storage facilities, a long-promised but still undelivered policy goal, would also help, they say.
------------
The Organization for Economic Cooperation and Development last week underlined the need for a new set of reforms in India to bolster growth, and no one in the finance or planning ministries seemed to disagree. The problem is getting it done.
----------
Higher interest rates are choking much-needed investment, which was almost flat in the first quarter of this year and grew just 4.1 percent year over year, as overall economic growth slipped to 7.8 percent.
The stock market is sliding — shares are down more than 14 percent this year, making India the worst-performing market in Asia. That in turn makes it more difficult for companies to raise the capital they need to invest.
----
Indian economy starts to slow down - The Washington Post
....In developments that parallel events in the other Asian powerhouse, neighboring China, rising prices have forced the government to steadily tighten monetary policy. Interest rates rose for the 10th time in 16 months last week.
But business leaders are unhappy. They say the medicine could be making the economic situation worse.
Much of the inflation in India is a function of higher oil and food prices, factors that respond poorly, if at all, to higher interest rates. Instead of depending on the central bank, the government needs to push through the kind of agricultural reforms and investment it has been talking about for years, analysts say.
“Government policy should be focused on improving agricultural productivity, but because that isn’t happening, the burden is falling more and more on monetary policy,” said Sanjay Mathur, Royal Bank of Scotland’s Asia emerging markets economist in Singapore. “Consequently, a number of sectors that shouldn’t be getting hurt are getting hurt.”
That means growth could fall back toward 7 percent, some economists warn, still faster than that of any major economy except China but below what India could achieve — and needs, if it is to pull hundreds of millions of people out of poverty.
“There is no point substituting one bad policy with another bad policy,” said Surjit Bhalla, chairman of Oxus Investments. “When the patient is down, don’t give him another kick in the pants.”
In the early 1990s, India’s government pushed through a series of economic reforms that unshackled the private sector and laid the foundation for two decades of strong growth. With that growth has come rising incomes, an expanding middle class and changing eating patterns. No longer dependent solely on rice, lentils and grains, Indians are demanding more vegetables, fruit, eggs, meat and fish.
Local agriculture has not kept pace. Farmers grow the wrong mix of crops, and about 40 percent of production is wasted before it reaches market because of inadequate distribution, warehousing and cold-storage systems.
Add to the mix a rural employment scheme that has boosted the incomes and appetites of India’s poorest, and a demographic bulge in hungry 15- to 24-year-olds, and it is little surprise that food prices are rising steadily year by year.
That in turn has pushed up wages, while production of raw materials such as coal, ores and cotton is also struggling to keep up with rising demand. Inflation hit 9.1 percent in May, and the central bank says it is expected to remain high through at least September.
To get food prices down, the government needs to promote horticulture and revolutionalize agricultural marketing and distribution, economists say. Allowing foreign companies such as Wal-Mart to set up supermarkets in India and invest in cold-storage facilities, a long-promised but still undelivered policy goal, would also help, they say.
------------
The Organization for Economic Cooperation and Development last week underlined the need for a new set of reforms in India to bolster growth, and no one in the finance or planning ministries seemed to disagree. The problem is getting it done.
----------
Higher interest rates are choking much-needed investment, which was almost flat in the first quarter of this year and grew just 4.1 percent year over year, as overall economic growth slipped to 7.8 percent.
The stock market is sliding — shares are down more than 14 percent this year, making India the worst-performing market in Asia. That in turn makes it more difficult for companies to raise the capital they need to invest.
----
Indian economy starts to slow down - The Washington Post
Indices :SENSEX
03/01/11 : 20,621.61
18/07/11 : 18,592.19
Fall : 9.2%
However, India is still not begging USA, E U, S Arabia, China, Japan etc. etc. & etc. for Billions upon Billions of US Dollars in the "INTEREST OF INTERNATIONAL PEACE!"
Some one is on to "A nice little earner".
Meantime :
Comparing KSE to BSE (BSE having a Marketcap of over THIRTY THREE Times that of KSE and the Indian Population is slightly over SIX Times as that of Pakistan must be very frustrating for our Pakistani Interlocutor.
Keep up the good work!
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