• Monday, September 25, 2017

Pakistan Beats India, Again

Discussion in 'Strategic & Foreign Affairs' started by Farooq, Jan 10, 2017.

  1. Farooq

    Farooq FULL MEMBER

    Messages:
    1,372
    Joined:
    Dec 22, 2010
    Ratings:
    +0 / 1,156 / -1
    Country:
    Korea, Democratic Peoples Republic Of
    Location:
    Korea, Democratic Peoples Republic Of
    After beating India in equity markets, Pakistan beat India in another metric recently: Geopolitics.

    The country's leaders have skillfully leveraged Pakistan's strategic geographic location to extract a series of benefits from America and China.

    In fact, the performance of Pakistan's equity markets and geopolitics isn’t reflective of their independence from each other. Geopolitics has been, and will be, a major driver for the country's financial markets.

    Index/Fund

    12-month Performance

    IShares China (FXI)

    13.00%

    Global X Pakistan (PAK)

    40.78

    iShares S&P India 50 (INDY)

    8.49%

    Source: Finance.yahoo.com 1/6/17

    Back in 2001, Pakistan leveraged its proximity to Afghanistan to extract a big benefit from America: a write off for a big part of its foreign debt--the spark of Pakistan's fifteen-year bull market.

    America needed Pakistan as an ally in its war against Afghanistan. And Pakistan's leadership offered to do just that in exchange for the US brokering debt relief for their large external debt - 60 percent of the country’s GDP, with debt serving counting for 30 percent of exports.

    “A unilateral default seemed almost inevitable,” writes Marko Dimitrijevic in Frontier Investor (New York: Columbia Business School, 2017). “However, the United States’ post-9/11 collaboration with the Musharraf government to fight terrorism provided an environment conducive for Pakistan to request the rescheduling of its debt.”

    Indeed, in December 2001, the Paris club did just that, cutting Pakistan’s debt by $12 billion, with IMF providing the country additional funding.

    The rest is history. Pakistan’s currency strengthened as foreign expatriate remittances and foreign capital flowed into the country, with a good chunk of it ending in financial markets -- which took off, until the 2008-9 financial crisis.

    Then China came along to re-ignite Pakistan’s market, once again.

    Beijing needed a western route to the Middle East, and Africa--China's second continent. Ideologically that is, which can explain why Beijing committed $46 billion to China-Pakistan Economic Corridor (CPEC). In addition, China has been investing in Pakistan’s infrastructure companies.

    In a sense, Pakistan’s gain is India’s loss, as China cannot appease both countries at the same time. In fact, it has done quite the opposite: repeatedly blocking India's efforts to join the Nuclear Supplier Group (NSG).

    And it has sided openly with Pakistan in the India-Pakistan Kashmir impasse, as evidenced by statements by China’s senior officials on the sidelines of the ongoing 71st session of United Nations General Assembly in New York, as previously discussed in a piece here.


    http://www.forbes.com/sites/panosmourdoukoutas/2017/01/09/pakistan-beats-india-again/#6dd6cd737c1a


    sad times for gow mata :(
     
    • Thanks Thanks x 5
  2. Director General

    Director General BANNED

    Messages:
    514
    Joined:
    Jun 24, 2016
    Ratings:
    +0 / 592 / -4
    Country:
    India
    Location:
    India
    KSE has a market capitalization of a mere $91 billion.
    Whereas BSE Has a market capitalization of $1.57 trillion.
    Reliance and Tata have more market cap than entire KSE.:lol:
     
    • Thanks Thanks x 26
  3. truthseeker2010

    truthseeker2010 SENIOR MEMBER

    Messages:
    2,635
    Joined:
    Dec 7, 2010
    Ratings:
    +1 / 2,953 / -1
    KSE's p/e ratio is less than BSE........
     
  4. Director General

    Director General BANNED

    Messages:
    514
    Joined:
    Jun 24, 2016
    Ratings:
    +0 / 592 / -4
    Country:
    India
    Location:
    India
    It is futile to compare KSE with BSE, as BSE is in a league if it's own.
    Comparing tiny KSE with Giant BSE is like comparing Brazil stock exchange with Ecuador stock exchange.
     
    • Thanks Thanks x 2
  5. PïXëL

    PïXëL BANNED

    Messages:
    319
    Joined:
    Jan 6, 2017
    Ratings:
    +0 / 319 / -3
    Country:
    India
    Location:
    Ireland
    you can compare but you should know that there are about 1700 companies listed in NSE , and as 6000 in BSE where KSE has not even more than 700.Also I doubt if there is any large caps in KSE:lol: .So you be aware what you are talking about..Our large cap like TCS,Reliance,ONGC,HDFC alone can eat your whole stock capitalization several times.Let's not talk about others...
    :rofl:
     
    Last edited: Jan 10, 2017
    • Thanks Thanks x 7
  6. schoolboy

    schoolboy FULL MEMBER

    Messages:
    602
    Joined:
    Dec 27, 2016
    Ratings:
    +0 / 442 / -0
    Country:
    India
    Location:
    United States
    Good for Pakistan - since booming stock markets are a good creator of retail wealth - but the base of the KSE is quite small to begin with - relative to BSE in India - so large percentage jumps are not uncommon. Same reason why indices in developed countries move at a snails pace.
     
    • Thanks Thanks x 5
  7. AyanRay

    AyanRay FULL MEMBER

    Messages:
    748
    Joined:
    Aug 29, 2009
    Ratings:
    +0 / 1,265 / -7
    Add to that, another 1.5 trillion of NSE.

    This news article reminds me of this.

    http://www.dawn.com/news/79439

    “Pakistan’s space programme is now ahead of India after the formal launching of Paksat-I and this is due to the hard work of our scientists and I am sure Indians would take another 30 months to do the job,” Gen Musharraf claimed.
     
    • Thanks Thanks x 7
  8. xyxmt

    xyxmt ELITE MEMBER

    Messages:
    13,932
    Joined:
    Apr 27, 2012
    Ratings:
    +5 / 11,272 / -9
    Country:
    Pakistan
    Location:
    Canada
    Ali baba has more market cap than all of India
     
    • Thanks Thanks x 2
  9. Director General

    Director General BANNED

    Messages:
    514
    Joined:
    Jun 24, 2016
    Ratings:
    +0 / 592 / -4
    Country:
    India
    Location:
    India
    Smaller indexes generally always have better PSX than larger ones for eg Canadian index has better PSX than Dow Jones of U.S..
    But their low market caps make their value negligible in comparison.
     
    • Thanks Thanks x 1
  10. Anish

    Anish BANNED

    Messages:
    189
    Joined:
    Oct 16, 2016
    Ratings:
    +0 / 184 / -14
    Country:
    India
    Location:
    France
    Lol That doesn't mean Pakistan would bring more investors than India or any other bigger economies.Smaller markets give better outcome cause they tend to develop fast.In case of India only the market capitalization is huge as well as lots scope for future development & investors feels confident..
    By that logic people will buy more Pakistani stock rather than USA or China
     
    • Thanks Thanks x 1
  11. Director General

    Director General BANNED

    Messages:
    514
    Joined:
    Jun 24, 2016
    Ratings:
    +0 / 592 / -4
    Country:
    India
    Location:
    India
    Price per earnings.
     
    • Thanks Thanks x 1
  12. Director General

    Director General BANNED

    Messages:
    514
    Joined:
    Jun 24, 2016
    Ratings:
    +0 / 592 / -4
    Country:
    India
    Location:
    India
    Nope.
    Every smaller index has lower price per earnings than bigger ones.
    E.g. BSE has a better price per earnings than DOW but that doesnt mean that DOW is less attractive option.
     
    • Thanks Thanks x 1
  13. Arsala.nKhan

    Arsala.nKhan BANNED

    New Recruit

    Messages:
    93
    Joined:
    Dec 21, 2016
    Ratings:
    +0 / 37 / -0
    Country:
    Pakistan
    Location:
    Pakistan
    Well done Pakistan :pakistan:
     
    • Thanks Thanks x 1
  14. Anish

    Anish BANNED

    Messages:
    189
    Joined:
    Oct 16, 2016
    Ratings:
    +0 / 184 / -14
    Country:
    India
    Location:
    France
    He is talking about Pakistani stock exchange bro..
     
  15. faaiq Sheikh

    faaiq Sheikh FULL MEMBER

    New Recruit

    Messages:
    87
    Joined:
    Dec 20, 2016
    Ratings:
    +0 / 38 / -0
    Country:
    Pakistan
    Location:
    Pakistan
    Dil dil Pakistan Jan jan Pakistan :yahoo::yahoo::yahoo::victory::victory::victory::victory::bounce::bounce::bounce: