KSE most favourite market in region
Thursday, June 06, 2013
Staff Report
KARACHI: Even after a blockbuster return of 49 percent in 2012 and a year to date return of 32 percent in 2013, the Karachi Stock Exchange (KSE) 100-share index still continues to remain the cheapest on price earnings (PE), price-to-book (PB) and dividend yield basis regionally, analysts said on Wednesday.
Global Securities Limiteds Sana Abdullah said in contrast to regional markets, Pakistan comes off as even more attractive in terms of dividend yield, as forward dividend yield on the index at 5.0 percent tops all regional peers by a margin of 200 basis points (bps). The KSE 100-share index does not appear to be overvalued by any means yet has the PE discount to regional peers at 44 percent, which is still a good 14 percent higher compared to historic average of 30 percent, Ms Abdullah added.
Trading activity has picked up significantly at the bourse too, as average daily volumes have depicted a surge to an average 340 million shares during May 2013 as compared to 200 million shares pre-election, which is also another positive sign, she said.
Ms Abdullah further said, Exploration and production, and Independent Power Producers (IPPs) remain the top sector picks based on the premise that its feared the rupee might depreciate by 5.0 percent on yearly basis in financial year 2013-14, on the back of vulnerable balance of payments position and the pending International Monetary Fund (IMF) repayments.
The dollar denominated revenues for the oil exploration companies and fixed dollar-based ROEs of the IPPs make them the favoured investment choice, she added. In addition, export-oriented sectors that include textile and cement are also the favoured sector picks. Hubco, Pakistan Petroleum Limited (PPL), Lucky Cement and MCB Bank have provided a year to date return of 39 percent, 25 percent, 25 percent and 49 percent, respectively.
Country-wise data
[td]PE[/td] [td]PB[/td] [td]Dividend Yield
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Daily Times - Leading News Resource of Pakistan
Thursday, June 06, 2013
Staff Report
KARACHI: Even after a blockbuster return of 49 percent in 2012 and a year to date return of 32 percent in 2013, the Karachi Stock Exchange (KSE) 100-share index still continues to remain the cheapest on price earnings (PE), price-to-book (PB) and dividend yield basis regionally, analysts said on Wednesday.
Global Securities Limiteds Sana Abdullah said in contrast to regional markets, Pakistan comes off as even more attractive in terms of dividend yield, as forward dividend yield on the index at 5.0 percent tops all regional peers by a margin of 200 basis points (bps). The KSE 100-share index does not appear to be overvalued by any means yet has the PE discount to regional peers at 44 percent, which is still a good 14 percent higher compared to historic average of 30 percent, Ms Abdullah added.
Trading activity has picked up significantly at the bourse too, as average daily volumes have depicted a surge to an average 340 million shares during May 2013 as compared to 200 million shares pre-election, which is also another positive sign, she said.
Ms Abdullah further said, Exploration and production, and Independent Power Producers (IPPs) remain the top sector picks based on the premise that its feared the rupee might depreciate by 5.0 percent on yearly basis in financial year 2013-14, on the back of vulnerable balance of payments position and the pending International Monetary Fund (IMF) repayments.
The dollar denominated revenues for the oil exploration companies and fixed dollar-based ROEs of the IPPs make them the favoured investment choice, she added. In addition, export-oriented sectors that include textile and cement are also the favoured sector picks. Hubco, Pakistan Petroleum Limited (PPL), Lucky Cement and MCB Bank have provided a year to date return of 39 percent, 25 percent, 25 percent and 49 percent, respectively.
Country-wise data
Country | |||
Pakistan | 8.7 | 1.8 | 5% |
Vietnam | 10.7 | 1.9 | 3% |
Sri Lanka | 13.3 | 1.9 | 3% |
Thailand | 15.2 | 2.5 | 3% |
Phillipines | 17.3 | 3.0 | 2% |
Indonesia | 17.4 | 3.1 | 2% |
India | 18.4 | 2.6 | 2% |
Taiwan | 18.9 | 1.7 | 3% |
South Korea | 20.9 | 1.1 | 1% |
Average | 15.6 | 2.1 | 3% |
Daily Times - Leading News Resource of Pakistan