Pakistan's Market Leaves India's And China's In The Dust

[Bashido]

• 
  Panos MourdoukoutasContributor
  I cover global markets, business and investment strategy
  
  Opinions expressed by Forbes Contributors are their own.
  
  MARKETS 11/28/2016 @ 4:55PM 11,038 views
  Pakistan's Market Leaves India's And China's In The Dust
  
  Unshaken by the rise in US interest rates, Pakistan’s equity markets continue to beat China’s and India’s markets by a wide margin. In the last twelve months, Global X MSCI MSCI +% Pakistan ETF was up 16%, beating India’s and China’s comparable ETF’s, which were in negative territory for the year – see table.
  
  Index/Fund 12-month Performance
  Global X MSCI Pakistan (NYSEAK) 16%
  IShares China (NYSE:FXI) -1.5%
  iShares S&P India 50 (NASDAQ:INDY) -3.24%
  iShares MSCI Emerging Markets (NYSE:EEM) 1.10%
  Source: Finance.yahoo.com 11/23/2016
  
  Index/Fund 12-month Performance
  Global X MSCI Pakistan (NYSEAK) 20%
  IShares China 9.80%
  iShares S&P India 50 12.77%
  iShares MSCI Emerging Markets
  
  
  5.38%
  Source: Finance.yahoo.com 9/14/2016
  
  That’s contrary to what one would have expected. India has become more competitive in the global economy recently, rising by 16 rankings in 2016 to the 39thposition, while it is still at 122th position, near the bottom of the World Forum ranking—see table.
  
  Country 2016 2015
  India 39 55
  China 28 28
  Pakistan 122 126
  Source: World Competitiveness Index, World Economic Forum.
  
  There’s more: Pakistan has been lagging behind both India and China in key macroeconomic metrics like GDP growth rates and unemployment—see table.
  
  Pakistan’s, India’s and China’s Key Metrics
  
  Country China India Pakistan
  GDP $10866 billion 2074 billion $270 billion
  GDP Growth yoy 6.7% 7.1% 4.24%
  Unemployment 4.05% 4.9% 5.9%
  Inflation Rate 1.3% 5.05% 3.56%
  Capital flows -594 HML -$300 million -$1882 million
  Government Debt to GDP 43.9% 67.2% 64.8%
  Still, there are a few good explanations for the Pakistan’s market lead over India and China.
  
  Pakistan is a frontier market economy, while India and China are emerging market economies. This means that Pakistan’s economy is less exposed to the global economy than India and China. Thus, it is less vulnerable to interest rate fluctuations in developed countries, most notably in the US.
  
  Then there’s the pouring in of Chinese investment, which is turning Pakistan into Beijing’s corridor to Middle East oil and to Africa’s riches.
  
  Add to that a couple of overseas endorsements for Pakistan’s market reforms from overseas institutions that have been hyping investor expectations. Like $1 billion in support from the World Bank – and a couple of domestic acquisitions from foreign suitors like the acquisition of Karachi’s K-Karachi by Shanghai Electric Power Co.
  
  While Pakistan’s market has been getting praise from overseas institutions and investors, India’s markets have been rattled by Modi’s experimentations with the country’s currency, as I wrote in a previous piece here. And China’s markets have been unsettled by the return of heavy-handed government policies, which have scared away foreign investors.
  
  To be fair, frontier markets are highly volatile, with one year’s big winners turning into next year’s big losers. Besides, with a big run up over the last five years, the big gains are already behind, for now. Investors should be very careful in establishing new positions at this time.
  
  
  
  http://www.forbes.com/sites/panosmo...s-indias-and-chinas-in-the-dust/#348244356cd9

 

[Hakikat ve Hikmet]

The Pak folks have been shown all the tricks, and still they're moving forward. It means for them it'll be only upward till they reach the high end of the middle income group. This is all based on "conventional" wisdom. Pak, however, loves to show the "unconventional" staffs. Let's see whether it can break even the middle income trap ....

 

[Kaniska]

I think, credit must go to NS for developing the economy of Pakistan.

 

[Thorough Pro]

I keep stressing, we need at least 10 more years of political stability and business minded government, after that India won't even be visible in our back view mirrors.

We have seen the worst of all, MQM, Zardari government, Terrorism, political un-stability, ethnic violence, power shortage higher petroleum prices etc. Now we are on the move in the right direction. With political stability and economy improvement hopefully we will also see some control on corruption.

PWEWASTA REH SHAJAR SAY, UMEED-E-BAHAR RAKH

 

[AZADPAKISTAN2009]

All due to PTI

Well on different note I do wish to add that the fund mentioned here is merely a new fund that is very raw and new.

It will take 2-6 Years for this fund to reach higher potential , other draw back is that it is only 1 single , itsy bitsy fund

Just as comparison other countries have 7-10 or even 100 funds that target different special areas of courntry where $$ goes.

So to say this BABY fund is reflection of immediate success we are really jumping too far of ourselves in my opinion the real success would be when we will have 500 Billion in reserves

And over 40 Funds available nationally for folks to invest openly

We got a LONG LONG road ahead

 

[war&peace]

I think, credit must go to NS for developing the economy of Pakistan.

No chance, Rather the true statement will be that Pakistan's market ( not economy), as per the article, is rising despite NS.

While the economy is going down but the market is rising which shows the optimism for future (markets always operate under impressions and skepticism and get influenced by events like Trumps election crashed markets while economy was the same). This optimism for the future begets from two factors...Pakistan recovering from terrorism due to the army operations and development of CPEC so Thanks to Gen. Raheel Shareef and China

 

[DJ_Viper]

No chance, Rather the true statement will that Pakistan's market ( not economy), as per the article, is rising despite

Sir, this is an interesting statement. Its pretty obvious that you have no idea about the differences between an economy and its "market". These are interchangeable terms. A "stock market" only grows when the economy grows or has high potential of growth already proven and visible to analysts. Like the article states in its first detailed paragraph. Everything you need to know as to why "Pakistan's economy" is growing or has a higher potential to grow in the near future is right there, from domestic reforms, to investor's confidence, to the Chinese investment and to future links with the Middle Eastern countries for Oil, Africa and the West. Thanks

• 
  Panos MourdoukoutasContributor
  I cover global markets, business and investment strategy
  
  Opinions expressed by Forbes Contributors are their own.
  
  MARKETS 11/28/2016 @ 4:55PM 11,038 views
  Pakistan's Market Leaves India's And China's In The Dust
  
  Unshaken by the rise in US interest rates, Pakistan’s equity markets continue to beat China’s and India’s markets by a wide margin. In the last twelve months, Global X MSCI MSCI +% Pakistan ETF was up 16%, beating India’s and China’s comparable ETF’s, which were in negative territory for the year – see table.
  
  Index/Fund 12-month Performance
  Global X MSCI Pakistan (NYSEAK) 16%
  IShares China (NYSE:FXI) -1.5%
  iShares S&P India 50 (NASDAQ:INDY) -3.24%
  iShares MSCI Emerging Markets (NYSE:EEM) 1.10%
  Source: Finance.yahoo.com 11/23/2016

@SBD-3 : Sir, I am disappointed. If I had the "privilege to post", I would've posted it on here when the article was published and I posted it in one of your threads. Thank you for not posting

 

[war&peace]

Sir, this is an interesting statement. Its pretty obvious that you have no idea about the differences between an economy and its "market". These are interchangeable terms. A "stock market" only grows when the economy grows or has high potential of growth already proven and visible to analysts. Like the article states in its first detailed paragraph. Everything you need to know as to why "Pakistan's economy" is growing or has a higher potential to grow in the near future is right there, from domestic reforms, to investor's confidence, to the Chinese investment and to future links with the Middle Eastern countries for Oil, Africa and the West. Thanks

I have no idea or better you forgot to wear glasses before you decided to run over me

Pakistan's Market Leaves India's And China's In The Dust

 

[FunkyGen]

All due to PTI

k

 

[CriticalThought]

The Pakistani stock market is probably the biggest scam ever invented. The small investor will always suffer from lack of liquidity because the punters sitting in the brokerages are out to make money on the investor's expense. The only safe way to enter the KSE is through large international institutional investors. And the way money is made on the KSE is prices are artificially pumped up, idiots buy shares at high prices, and the cunning ones leave the market. So you will see a cycle of the market crashing and then picking up again.

Things like Efficient Market Hypothesis absolutely do not apply to the KSE. Consequently, all the trading volume you see has no real bearing on actual economic performance. It is a good indicator of investor confidence in the country's stability though. They are voting with their money that the country won't go up in smoke tomorrow.

 

[PakGuns]

No chance, Rather the true statement will be that Pakistan's market ( not economy), as per the article, is rising despite NS.

While the economy is going down but the market is rising which shows the optimism for future (markets always operate under impressions and skepticism and get influenced by events like Trumps election crashed markets while economy was the same). This optimism for the future begets from two factors...Pakistan recovering from terrorism due to the army operations and development of CPEC so Thanks to Gen. Raheel Shareef and China

Your logic is as good as I am in skydiving..

 

[My-Analogous]

I have no idea or better you forgot to wear glasses before you decided to run over me

Bro, His statements is based on financial background, so if you have some theory to support your statement based on finance, please bring

 

[SBD-3]

@SBD-3 : Sir, I am disappointed. If I had the "privilege to post", I would've posted it on here when the article was published and I posted it in one of your threads. Thank you for not posting

Amid a hectic week, heavier workload means lesser time for other activities like fora.

I think, credit must go to NS for developing the economy of Pakistan.

Most of the people would find this hard to digest, some will vomit and some will die in hatred.

 

[Devil Soul]

Pakistan’s stock market leaves India’s, China’s in the dust: Forbes
Home / Today's Paper / Top Story / Pakistan’s stock market leaves India’s, China’s in the dust: Forbes
By Monitoring Report
November 30, 2016
Print : Top Story

• 0
• 0

Pak economy less vulnerable to interest rate fluctuations in US, developed states; Pak market getting praise from overseas institutions, investors

ISLAMABAD: Unshaken by the rise in US interest rates, Pakistan’s equity markets continue to beat China’s and India’s markets by a wide margin.In the last 12 months, Pakistan ETF was up 16 percent, beating India’s and China’s comparable ETF’s, which were in negative territory for the year, Forbes reported.

That’s contrary to what one would have expected. India has become more competitive in the global economy recently, rising by 16 rankings in 2016 to the 39th position, while it is still at 122th position, near the bottom of the World Forum ranking.

Still, there are a few good Forum ranking. Still, there are a few good explanations for the Pakistan’s market lead over India and China.

Pakistan is a frontier market economy, while India and China are emerging market economies. This means that Pakistan’s economy is less exposed to the global economy than India and China. Thus, it is less vulnerable to interest rate fluctuations in developed countries, most notably in the US.

Then there’s the pouring in of Chinese investment, which is turning Pakistan into Beijing’s corridor to Middle East oil and to Africa’s riches. Add to that a couple of overseas endorsements for Pakistan’s market reforms from overseas institutions that have been hyping investor expectations. Like $1 billion in support from the World Bank – and a couple of domestic acquisitions from foreign suitors like the acquisition of Karachi’s K-Karachi by Shanghai Electric Power Co.

While Pakistan’s market has been getting praise from overseas institutions and investors, India’s markets have been rattled by Modi’s experimentations with the country’s currency. And China’s markets have been unsettled by the return of heavy-handed government policies, which have scared away foreign investors.

Frontier markets are highly volatile, with one year’s big winners turning into next year’s big losers. Besides, with a big run up over the last five years, the big gains are already behind, for now.

 

[SoulSpokesman]

CT,

The Pakistani stock market is probably the biggest scam ever invented.

Not necessarily. The symptoms that you have described are in a way endemic to any SE which has relatively low amount of m-cap, traded volumes etc. Once Pak economy and KSE achieves a certain size and scale, the kind of fluctuations you refer to will substantially lessen.

Regards