KSE second best performer in Asia

[farhan_9909]

KARACHI: Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 2.7 per cent (821 points) last month, taking the current year-to-date returns to 23.5pc, second best performance in Asia.

With the end of the month, nearly all major brokerage houses have come up with reports on the bourse’s performance in November.

“This marks the eighth month in CY2014 to-date where the market has posted positive returns, which is at par against past five-year average,” said analysts at AKD Securities.

“During the period, the index touched its all-time high of 32,000 points,” reminded analyst Abdul Azeem at Invest Capital. Analysts said the cut in discount rate by 50 basis point spurred rally at the market during the month. Moreover, declining international coal prices coupled with better than expected cement sales also supported the surge.

The average market volume stood at 253 million shares during the month, up by 4pc month-on-month.

Foreign Investors Portfolio Investments (FIPI) during November amounted to $36.3m while during 11MCY14 the bourse attracted $432m. On the other hand, the total FIPI of the Asian Pacific Markets during the month stood at $6.6bn, with Taiwan taking the lead with inflow of $3.3bn.

Published in Dawn December 2nd , 2014

KSE second best performer in Asia - Newspaper - DAWN.COM

 

[WAJsal]

can u explain me how does this affect our economy? please

 

[karakoram]

good news after a long time keep it up KSE.

 

[Bouncer]

can u explain me how does this affect our economy? please

Not an expert, but in layman terms here's how it benefits Pakistan's economy;

1. Foreign/local investment in Pakistani stocks. This allows our local companies to (ideally) invest more and move towards expansion.
   
2. As a result of above, it gives exposure to Pakistani market. Pakistan is included in "Emerging Markets" by MSCI. Better performance of KSE combined with general economic performance leads to increase in such rankings, which in turn leads to better credit rankings. Better credit rankings help a country to borrow cheap money. This is why some countries pay more interest on same amount of loan from same lender than others.
3. Large funds invest in a country when they think they can get returns on their money better than anywhere else. So increased investment shows investor confidence. But stock market is not exactly a true reflection of a country's economic progress; there are many factors at play and you will have to read further from better qualified sources.

 

[sree45]

Sorry to burst the bubble. But India's NSE has registered a growth of 34.79%(6323.80 to 8524) and BSE has registered a growth of 36.94%(20771 on Jan 1st 2014 to 28444 as of now) since the beginning of 2014.

So, KSE must be third.

 

[WAJsal]

Not an expert, but in layman terms here's how it benefits Pakistan's economy;

1. Foreign/local investment in Pakistani stocks. This allows our local companies to (ideally) invest more and move towards expansion.
   
2. As a result of above, it gives exposure to Pakistani market. Pakistan is included in "Emerging Markets" by MSCI. Better performance of KSE combined with general economic performance leads to increase in such rankings, which in turn leads to better credit rankings. Better credit rankings help a country to borrow cheap money. This is why some countries pay more interest on same amount of loan from same lender than others.
3. Large funds invest in a country when they think they can get returns on their money better than anywhere else. So increased investment shows investor confidence. But stock market is not exactly a true reflection of a country's economic progress; there are many factors at play and you will have to read further from better qualified sources.

thanks

 

[Donatello]

More like speculation in both KSE and BSE..........keep inflating the bubble. Big playas always get out easy.

 

[Avik274]

Lol!!this year sensex has a record of 36% increase & NSE got 34 % record increase.So KSE not even stand to second if I am not wrong....

 

[Archie]

More like speculation in both KSE and BSE..........keep inflating the bubble. Big playas always get out easy.

The rule of thumb is that as long as combined Market cap of the Stocks stays below 1.5 times the GDP of the country and P/E ratio remains below 25:1
Then the stock market is not in a bubble.
BSE's Market cap is 0.85 times India's GDP
while PE ratio hovers around 15:1

I dont know about KSE

 

[Faiez]

Not an expert, but in layman terms here's how it benefits Pakistan's economy;

1. Foreign/local investment in Pakistani stocks. This allows our local companies to (ideally) invest more and move towards expansion.
   
2. As a result of above, it gives exposure to Pakistani market. Pakistan is included in "Emerging Markets" by MSCI. Better performance of KSE combined with general economic performance leads to increase in such rankings, which in turn leads to better credit rankings. Better credit rankings help a country to borrow cheap money. This is why some countries pay more interest on same amount of loan from same lender than others.
3. Large funds invest in a country when they think they can get returns on their money better than anywhere else. So increased investment shows investor confidence. But stock market is not exactly a true reflection of a country's economic progress; there are many factors at play and you will have to read further from better qualified sources.

1. how exactly?