Pakistan ranked 4th best-performing stock market by CNN in 2012

[Xestan]

World's 5 hottest stock markets

4. PAKISTAN

YTD gain: 33%

Karachi's benchmark index has soared to historic highs this year on healthy volume, largely due to the State Bank of Pakistan's easing monetary policy.

Through a series of moves, Pakistan's central bank has been able to cut its key interest rate to 10% from 12% at the start of the year, thanks to lower-than-expected inflation figures, said Naveed Vakil, director of research at AKD Securities.

As inflation keeps trending lower, analysts expect that Pakistan's central bank will continue cutting rates and eventually push its benchmark interest rate into the single digits. And that should help spur further gains in the country's stock market.

A jump in consumer spending has also been a big driver of the stock market rally, said Vakil.

Rural income has grown significantly thanks to larger remittances and stable prices for so-called soft commodities, such as cotton. In fact, overseas Pakistani workers sent home a record $1.4 billion in remittances last month, up more than 30% from a year earlier.

The rise in spending has particularly helped companies like Bestway Cement, which benefits from a rise in homebuilding, and Engro Foods Limited, which gets a lift as people spend more money on food.

World's 5 hottest stock markets - 4. Pakistan (3) - CNNMoney

World's 40 best-performing stock markets in 2012 - CNNMoney

 

[farhan_9909]

Good news

now we need to accelerate our growth to atleast 4.7% this year as projected

 

[W.11]

i suspect this is a short gimmick by PPP because of politics

 

[Azazel]

i suspect this is a short gimmick by PPP because of politics

It must be.The stock market is rising because of the recent monetary easing by Govt,this has done despite the fact that Pakistan suffers from high inflation.This must have been done to gain favor of industrialist by PPP.

 

[INDIC]

It must be.The stock market is rising because of the recent monetary easing by Govt,this has done despite the fact that Pakistan suffers from high inflation.This must have been done to gain favor of industrialist by PPP.

So does it cause devaluation of Pakistani rupee.

 

[Leader]

if u have scanning eyes over news items..... strangely enough, all of a sudden good news are coming regarding economy from all corners of the media about this government??

khair hai?

 

[farhan_9909]

It must be.The stock market is rising because of the recent monetary easing by Govt,this has done despite the fact that Pakistan suffers from high inflation.This must have been done to gain favor of industrialist by PPP.

inflation stands at 6.9%

 

[Emmie]

It must be.The stock market is rising because of the recent monetary easing by Govt,this has done despite the fact that Pakistan suffers from high inflation.This must have been done to gain favor of industrialist by PPP.

Moreover it's the central bank which takes care of monetary policy..

 

[Azazel]

So does it cause devaluation of Pakistani rupee.

Its not strictly called devaluation since it's not because of Govt action.High inflation does depreciate the currency.Pakistan also has twin deficits(current account and trade) and low growth rate to worry about.Next year Pakistan Rupee may depreciate even more because they may have another balance of payment crisis.

 

[Azazel]

Moreover it's the central bank which takes care of monetary policy..

Do you believe that,Did any of the prices came down recently??Especially fuel,food etc.

 

[Emmie]

Do you believe that,Did any of the prices came down recently??Especially fuel,food etc.

Don't you know about the recent cuts in the fuel prices? Yeah, food prices are way down now..

 

[Azazel]

Don't you know about the recent cuts in the fuel prices? Yeah, food prices are way down now..

Nope,I didn't heard that.But that sudden drop in inflation just before election just doesn't seems plausible.That's why I asked.

 

[Emmie]

Nope,I didn't heard that.But that sudden drop in inflation just before election just doesn't seems plausible.That's why I asked.

Trickle down effect that's it... Government on other hand left no stone unturned to flub the economy.

 

[Azazel]

Trickle down effect that's it... Government on other hand left no stone unturned to flub the economy.

Trickle down effect on what??Food,fuel,these are basic necessities.How does trickle down effect works on that.Its just a marketing phenomenon for high end consumer goods.

 

[Emmie]

Trickle down effect on what??Food,fuel,these are basic necessities.How does trickle down effect works on that.Its just a marketing phenomenon for high end consumer goods.

Politically the term means a lot different, usage there was idiomatic..