Soaring Profits Push Pakistan's KSE-100 to 4-Year High

[Yogi]

Its just because of the fact the corrupt people from the present GoP has taken money out from Pakistan to Dubai and then get it back in the name of "Remittances" which they used to claim a Record. After that they have invested all this money in the KSE and push it to level which is around 300% or even much more than the actual one. Some experts says that the actual index of KSE is around 7000-8000. So you can understand what will going to happen when the tenure of this GoP will end.

What ur saying is true n its a major reason for increase in KSE
here is a video to prove this point

 

[RiazHaq]

Case in point that you have no clue about what you are talking



He is talking of the market cap of the Stock exchange and not companies.. Also unlike what some magazines would have you believe, size matters

Anyway, for your reading pleasure

KSE index surge: is it different this time? | DAWN.COM

But the trouble with the bulls is that when they begin to charge, they do so with a fixed gaze on the positives. The current rally is neither driven by politics nor economy.


If the stock market in modern times is still regarded to be the barometer of the economy, the one that hangs over the KSE looks like in need of repairs.

All that raises the spectre of a doddering market at the edge of the cliff. It brings back the dreadful memory of stock crash of 2008, which had resulted in a fearful plunge in equity values by 55 per cent in fewer than four months from its historic high of 15,760 points touched on April 20, 2008.

Some market pundits, looking back at the current neck breaking speed of the stock index, have called for caution. The bulk of activity in the last few months in ‘penny’ stocks, suggests that the small investors badly bruised by the bear rampage of 2008, may again be biting more than they can chew

And what are exchange indexes made of? Companies, of course!

What matters to investors are company profits and returns....not market caps.

And KSE 100 today is driven by huge increases in profits and very attractive valuations as pointed out in my post.

 

[Abdal Ali]

And what are exchange indexes made of? Companies, of course!

What matters to investors are company profits and returns....not market caps.

And KSE 100 today is driven by huge increases in profits and very attractive valuations as pointed out in my post.

http://www.finance.gov.pk/survey/chapter_12/01-GrowthAndStabilization.pdf

On Page 11 of the above-linked Pakistan Finance Ministry 2012 report it says:

"Around 68 percent of Pakistan’s population is in the youth category (under 30 years) with the size of the
workforce increasing by over 3 percent annually. To absorb this youth bulge productively, Pakistan's real
GDP needs to grow at an annual average rate in excess of 7 per cent"

The same report on Page 2, states that our GDP growth rate were:

2001......... 2.00%
2002......... 3.10%
2003......... 4.70%
2004......... 7.50%
2005......... 9.00%
2006......... 5.80%
2007......... 6.80%
2008......... 3.70%
2009......... 1.70%
2010......... 3.10%
2011......... 3.00%
2012......... 3.70%

What is it that we are celebrating?

 

[Pak47]

http://www.finance.gov.pk/survey/chapter_12/01-GrowthAndStabilization.pdf

On Page 11 of the above-linked Pakistan Finance Ministry 2012 report it says:

"Around 68 percent of Pakistan’s population is in the youth category (under 30 years) with the size of the
workforce increasing by over 3 percent annually. To absorb this youth bulge productively, Pakistan's real
GDP needs to grow at an annual average rate in excess of 7 per cent"

The same report on Page 2, states that our GDP growth rate were:

2001......... 2.00%
2002......... 3.10%
2003......... 4.70%
2004......... 7.50%
2005......... 9.00%
2006......... 5.80%
2007......... 6.80%
2008......... 3.70%
2009......... 1.70%
2010......... 3.10%
2011......... 3.00%
2012......... 3.70%

What is it that we are celebrating?

Yeah, Pakistan went through tough times.. especially in 2009. We are celebrating.. the increase the last 3 years proceeding. Inshallah, we will get to 9% once more.

 

[Abdal Ali]

Yeah, Pakistan went through tough times.. especially in 2009. We are celebrating.. the increase the last 3 years proceeding. Inshallah, we will get to 9% once more.

At the very minimum, the report says, we need a GDP growth rate "in excess of 7 percent". Of course, it would be good if we could achieve 9-10%, but what is our track-record for this kind of performance?

SOURCE: World Bank Countries | Data

 

[Jade]

The fact that KSE-100 is going up by double digits is confirmation of investors flocking to it... in fact, it's the best performing market in Asia so far this year. How else does a share index go up?

In imperfect markets, prices doesn't necessarily reflect the true value of the stock

Indeed.



Mr. Genius market cap. is not the issue here rather it is the rate of return. For any investor this is the biggest if not THE motivational factor.

Apart from the rate of returns, there are other factors such as volatility, liquidity, maturity that people take into consideration while investing.

 

[RiazHaq]

In imperfect markets, prices doesn't necessarily reflect the true value of the stock

Over short periods, yes. But not over 5 yrs, 10 yrs, 15 years period. KSE-100 has been outperforming most BRICs for at least a decade.

Haq's Musings: Karachi Tops Mumbai in Stock Performance

 

[karan.1970]

Over short periods, yes. But not over 5 yrs, 10 yrs, 15 years period. KSE-100 has been outperforming most BRICs for at least a decade.

Haq's Musings: Karachi Tops Mumbai in Stock Performance

Then why isnt economy ??? (Last 20 years)

 

[RiazHaq]

http://www.finance.gov.pk/survey/chapter_12/01-GrowthAndStabilization.pdf

On Page 11 of the above-linked Pakistan Finance Ministry 2012 report it says:

"Around 68 percent of Pakistan’s population is in the youth category (under 30 years) with the size of the
workforce increasing by over 3 percent annually. To absorb this youth bulge productively, Pakistan's real
GDP needs to grow at an annual average rate in excess of 7 per cent"

The same report on Page 2, states that our GDP growth rate were:

2001......... 2.00%
2002......... 3.10%
2003......... 4.70%
2004......... 7.50%
2005......... 9.00%
2006......... 5.80%
2007......... 6.80%
2008......... 3.70%
2009......... 1.70%
2010......... 3.10%
2011......... 3.00%
2012......... 3.70%

What is it that we are celebrating?

Here's what:

Haq's Musings: India and Pakistan Comparison Update 2011

 

[RiazHaq]

Then why isnt economy ??? (Last 20 years)

Pakistan's real economy is at least 30-50% bigger than the one officially reported.

Haq's Musings: Pak Consumer Boom Fuels Underground Economy

 

[Abdal Ali]

Here's what:
.........................................

http://www.finance.gov.pk/survey/cha...bilization.pdf

On Page 11 of the above-linked Pakistan Finance Ministry 2012 report it says:

"Around 68 percent of Pakistan�s population is in the youth category (under 30 years) with the size of the
workforce increasing by over 3 percent annually. To absorb this youth bulge PRODUCTIVELY, Pakistan's real
GDP needs to grow at an annual average rate in excess of 7 per cent"

The word productively means not just "employment", but meaningful employment such that the per capita economic output keeps increasing at a steady (or faster) rate. Unfortunately, however, as seen in the graph below, our per capita output increase-rates have consistently been falling. We are clearly facing another "lost decade", just like we did in the 1990s.....

SOURCE: IMF Database World Economic Outlook Database April 2012

 

[RiazHaq]

http://www.finance.gov.pk/survey/cha...bilization.pdf

On Page 11 of the above-linked Pakistan Finance Ministry 2012 report it says:

"Around 68 percent of Pakistan�s population is in the youth category (under 30 years) with the size of the
workforce increasing by over 3 percent annually. To absorb this youth bulge PRODUCTIVELY, Pakistan's real
GDP needs to grow at an annual average rate in excess of 7 per cent"

The word productively means not just "employment", but meaningful employment such that the per capita economic output keeps increasing at a steady (or faster) rate. Unfortunately, however, as seen in the graph below, our per capita output increase-rates have consistently been falling. We are clearly facing another "lost decade", just like we did in the 1990s.....

SOURCE: IMF Database World Economic Outlook Database April 2012

False flag again?

And who defines "meaningful" employment? You do? Do you know the first thing about Pakistan? Have you ever even set foot in Pakistan?

Pakistan's real GDP is at least 30-50% higher than what's officially reported...the undocumented economy has significantly increased in recent years.

Haq's Musings: Pak Consumer Boom Fuels Underground Economy

 

[karan.1970]

Pakistan's real economy is at least 30-50% bigger than the one officially reported.

Haq's Musings: Pak Consumer Boom Fuels Underground Economy

So now you going to use underground economy to try and show Pakistani economy is better

In last 30 years, Pakistan has out grown India only 5 times.. The Last time Pakistan grew faster than India was in 1992.. That was 2 decades back.. Hence your claim of Pakistan outgrowing BRICS for a decade is fake like most of your other arguments and fudged up facts

 

[Kyusuibu Honbu]

Pakistan's real economy is at least 30-50% bigger than the one officially reported.

Haq's Musings: Pak Consumer Boom Fuels Underground Economy

Might be 300%-500% too

 

[Riteon]

Underground economy or not....Can anyone gimme the taxation details of both countries