Why Pakistan's Market Beats China's And India's

[INDIAPOSITIVE]

Pakistan’s equity market has been outperforming China’s and India’s marketsby a big margin in recent years. In the last twelve months, Global X MSCI MSCI +% Pakistan ETF was up 20%, beating India’s and China’s comparable ETF’s by almost two to one – see table.

That may come as a big surprise to some. Pakistan has been suffering all sorts of terrorist attacks, which makes it a very unstable country to put your money in. And it has been lagging behind both India and China in key macroeconomic metrics like GDP growth rates and unemployment—see table.

Index/Fund 12-month Performance 5-year Performance
Global X MSCI Pakistan (NYSEAK) 20% 400%*
IShares China (NYSE:FXI) 9.80% 16.00%
iShares S&P India 50 (NASDAQ:INDY) 12.77 % 33.0%
iShares MSCI Emerging Markets (NYSE:EEM)


5.38% 1.52%
*In local currency.

Source: Yahoo YHOO +0.98%. Finance and Karachi Exchange 9/5/2016


Pakistan’s, India’s and China’s Key Metrics

Country China India Pakistan
GDP $10866 billion 2074 billion $270 billion
GDP Growth yoy 6.7% 7.1% 4.24%
Unemployment 4.05% 4.9% 5.9%
Inflation Rate 1.3% 5.05% 3.56%
Capital flows -594 HML -$300 million -$1882 million
Government Debt to GDP 43.9% 67.2% 64.8%
What does the collective wisdom of markets see in Pakistan’s markets that others are missing?



few things. First, terrorist attacks don’t usually affect financial markets, unless they are disruptive to trade, which hasn’t been the case in Pakistan. Second, Pakistan is a frontier rather than an emerging market, and therefore, favored by the numbers game. Third, its market reform efforts have been getting a couple of votes of confidence from overseas like $1 billion in support from the World Bank – and a couple of domestic acquisitions from foreign suitors like the acquisition of Karachi’s K-Karachi by Shanghai Electric Power Co. This has all been music to the ears of foreign investors.


While Pakistan’s market has been getting a couple of endorsements from overseas institutions and investors, China’s markets have been unsettled by the return of heavyhanded government policies which have scared away foreign investors. And while India has stayed on course with reforms, execution is a problem.

A few words of caution: Frontier markets are highly volatile, with one year’s big winners turning into next year’s big losers. Besides, with a big run up over the last five years, most of the gains are already behind, for now

http://www.forbes.com/sites/panosmo...-market-beats-chinas-and-indias/#28c01f01269f

 

[Max]

. Second, Pakistan is a frontier rather than an emerging market

Pakistan upgraded to emerging markets status

In a positive development, MSCI said its Pakistan Index will be reclassified to the Emerging Markets status, coinciding with the May 2017 Semi-Annual Index Review.

 

[ghameed]

Good luck with your market ....although personaly I don't think now is the time to invest in the pakistani markets ...remember the market runs on investor emotions .....very volatile ...one bomb blast or terrorist attack and the karachi index collapses ...no investor should want that kind of volatility ...

 

[Pakistan First]

Diversification is the word. Overall, Pakistan is a good place to invest in in the medium term. Diversity in Real Estate, Equity and a portion in precious metals.

 

[Mrc]

Good luck with your market ....although personaly I don't think now is the time to invest in the pakistani markets ...remember the market runs on investor emotions .....very volatile ...one bomb blast or terrorist attack and the karachi index collapses ...no investor should want that kind of volatility ...

Karachi index has been booming through bomb blasts ....

Its trading at 40,000 points up from 17000 3 years ago...

Now is the time to invest....
If the economy does kick off in year or two...you are too late

 

[Syed Asif Bukhari]

Pakistan’s equity market has been outperforming China’s and India’s markets by a big margin in recent years. In the last twelve months, Global X MSCI MSCI +% Pakistan ETF was up 20%, beating India’s and China’s comparable ETF’s by almost two to one – see table.

That may come as a big surprise to some. Pakistan has been suffering all sorts of terrorist attacks, which makes it a very unstable country to put your money in. And it has been lagging behind both India and China in key macroeconomic metrics like GDP growth rates and unemployment—see table.

Index/Fund 12-month Performance 5-year Performance
Global X MSCI Pakistan (NYSEAK) 20% 400%*
IShares China (NYSE:FXI) 9.80% 16.00%
iShares S&P India 50 (NASDAQ:INDY) 12.77 % 33.0%
iShares MSCI Emerging Markets (NYSE:EEM)


5.38% 1.52%
*In local currency.

Source: Yahoo YHOO +0.35%. Finance and Karachi Exchange 9/5/2016


Pakistan’s, India’s and China’s Key Metrics

Country China India Pakistan
GDP $10866 billion 2074 billion $270 billion
GDP Growth yoy 6.7% 7.1% 4.24%
Unemployment 4.05% 4.9% 5.9%
Inflation Rate 1.3% 5.05% 3.56%
Capital flows -594 HML -$300 million -$1882 million
Government Debt to GDP 43.9% 67.2% 64.8%
What does the collective wisdom of markets see in Pakistan’s markets that others are missing?

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A few things. First, terrorist attacks don’t usually affect financial markets, unless they are disruptive to trade, which hasn’t been the case in Pakistan. Second, Pakistan is a frontier rather than an emerging market, and therefore, favored by the numbers game. Third, its market reform efforts have been getting a couple of votes of confidence from overseas like $1 billion in support from the World Bank – and a couple of domestic acquisitions from foreign suitors like the acquisition of Karachi’s K-Karachi by Shanghai Electric Power Co. This has all been music to the ears of foreign investors

 

[cloud4000]

That may come as a big surprise to some. Pakistan has been suffering all sorts of terrorist attacks, which makes it a very unstable country to put your money in. And it has been lagging behind both India and China in key macroeconomic metrics like GDP growth rates and unemployment—see table.

Good news. I treat stock market performance as an indicator of confidence in Pakistan's economy, both domestically and internationally. Let's hope this confidence is sustained.

 

[Arsalan]

Good news. I treat stock market performance as an indicator of confidence in Pakistan's economy, both domestically and internationally. Let's hope this confidence is sustained.

And is translated into more meaningfull things, things that will have a more significant impact on our economy and growth.

 

[Khan_21]

@A-Team its forbes speaking not dawn or express. Pakistan is growing a massive pace

 

[Indus Pakistan]

I just read this article. What I have never understood is how highly educated so called experts can come up with rubbish conclusions.

"China’s purchase of Pakistani assets, like the K-Electric Company, may cheer investors for a month or two, but it won’t solve the country’s biggest problem –corruption.

On the other hand, purchase of those assets by Finland, Hong Kong, America, or even India would.

Why? Because they don’t have China’s severe corruption problem."

This guy is suggesting that since China itself is afflicted by corruption listed as 83 compared to India at 76 - the purchase of K-Electric would have been better if bought by Finnih or even Indian companies. Is this guy for real? Looking at the way China is reaching for the stars I would want exactly the "corruption" they have. I would say please bring "Chinese corruption" to Pakistan, please, please.


Country

Corruption Index in 2010 Corruption Index in 2015
China 78 83
Hong Kong 13 17
Pakistan 143 117
India 87 76
Finland 4 2
USA 22 16


http://www.forbes.com/sites/panosmo...solve-pakistans-biggest-problem/#197497cf67d0

 

[Umair Nawaz]

Panos Mourdoukoutas ,



I cover global markets, business and investment strategy



Pakistan’s equity market has been outperforming China’s and India’s markets by a big margin in recent years. In the last twelve months, Global X MSCI MSCI +% Pakistan ETF was up 20%, beating India’s and China’s comparable ETF’s by almost two to one – see table.

That may come as a big surprise to some. Pakistan has been suffering all sorts of terrorist attacks, which makes it a very unstable country to put your money in. And it has been lagging behind both India and China in key macroeconomic metrics like GDP growth rates and unemployment—see table.

Index/Fund 12-month Performance 5-year Performance
Global X MSCI Pakistan (NYSEAK) 20% 400%*
IShares China (NYSE:FXI) 9.80% 16.00%
iShares S&P India 50 (NASDAQ:INDY) 12.77% 33.0%
iShares MSCI Emerging Markets (NYSE:EEM)


5.38% 1.52%
*In local currency.

Source: Yahoo. Finance and Karachi Exchange 9/5/2016


Pakistan’s, India’s and China’s Key Metrics

Country China India Pakistan
GDP $10866 billion 2074 billion $270 billion
GDP Growth yoy 6.7% 7.1% 4.24%
Unemployment 4.05% 4.9% 5.9%
Inflation Rate 1.3% 5.05% 3.56%
Capital flows -594 HML -$300 million -$1882 million
Government Debt to GDP 43.9% 67.2% 64.8%
What does the collective wisdom of markets see in Pakistan’s markets that others are missing?

A few things. First, terrorist attacks don’t usually affect financial markets, unless they are disruptive to trade, which hasn’t been the case in Pakistan. Second, Pakistan is a frontier rather than an emerging market, and therefore, favored by the numbers game. Third, its market reform efforts have been getting a couple of votes of confidence from overseas like $1 billion in support from the World Bank – and a couple of domestic acquisitions from foreign suitors like the acquisition of Karachi’s K-Karachi by Shanghai Electric Power Co. This has all been music to the ears of foreign investors.

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While Pakistan’s market has been getting a couple of endorsements from overseas institutions and investors, China’s markets have been unsettled by the return of heavyhanded government policies which have scared away foreign investors. And while India has stayed on course with reforms, execution is a problem.

A few words of caution: Frontier markets are highly volatile, with one year’s big winners turning into next year’s big losers. Besides, with a big run up over the last five years, most of the gains are already behind, for now.

http://www.forbes.com/sites/panosmo...-market-beats-chinas-and-indias/#305416ec269f

And someone was comparing Pakistan's economy with Bangladesh's and even suggested that Bangladesh will surpass Pakistan's in 1.5 decades @Razia Sultana @Acknowledge

 

[Umair Nawaz]

@Fallen King @LA se Karachi

 

[Finer]

It was terrorism that hold Pakistan back. That was the only reason why India and Bangladesh were able to edge Pakistan. With stable economy, India and Bangladesh don't stand a chance. Pakistan was Asian tiger in economical world for a reason even with China back then. South Korea and Turkey saw big deals of Pakistan and hence formulated their economical model. Now they are growing progressive nations. Too bad, Pakistan distanced from its own economical model and put itself in the endless crisis that took years to sort them out, and still is.

As long as democracy remains stable continuously, Pakistan is projected to be big player in the foreseeable future. Until then, Pakistan will have to settle with the title "Regional Player". No nation can harm Pakistan, but Pakistan can be threat to its own citing the historical events of illegaly Marshall Law takeover with improper use of the systems never yielded fruitful result in the past.

There was attempted military takeover recently with Imran Khan as tool to use which was aborted by the understanding between General Raheel and Nawaz Sharif but for how long is the key given General Raheel is expected to end his term sooner.

Right now, Pakistan has the long way to go. I am glad Pakistan has turned its corner around. Keep it up; General Raheel and Nawaz Sharif.

 

[Umair Nawaz]

It was terrorism that hold Pakistan back. That was the only reason why India and Bangladesh were able to edge Pakistan. With stable economy, India and Bangladesh don't stand a chance. Pakistan was Asian tiger in economical world for a reason even with China back then. South Korea and Turkey saw big deals of Pakistan and hence formulated their economical model. Now they are growing progressive nations. Too bad, Pakistan distanced from its own economical model and put itself in the endless crisis that took years to sort them out, and still is.

As long as democracy remains stable continuously, Pakistan is projected to be big player in the foreseeable future. Until then, Pakistan will have to settle with the title "Regional Player". No nation can harm Pakistan, but Pakistan can be threat to its own citing the historical events of illegaly Marshall Law takeover with improper use of the systems never yielded fruitful result in the past.

There was attempted military takeover recently with Imran Khan as tool to use which was aborted by the understanding between General Raheel and Nawaz Sharif but for how long is the key given General Raheel is expected to end his term sooner.

Right now, Pakistan has the long way to go. I am glad Pakistan has turned its corner around. Keep it up; General Raheel and Nawaz Sharif.

Yup that 5 year economic plan of Gen Ayub Khan. BTW democracy hasnt got anything to do with it. Pakistan was averaging @7.5% just 9 years ago and touched 8% in 2007 under Gen Musharaf. Gen Ayub and Gen Mushy both were armymen.

 

[liall]

What are the best performing sectors of Pakistani economy?