Despite economic slowdown, and other issues, Pakistan is so far the best performing market in Asia after Indonesia as measured by the MSCI Indices. Over 20 percent growth in corporate earnings and reduction in interest rates helped Pakistan equities so far in 2011 amongst the Asian Emerging and Frontier markets tracked by MSCI.
Topline Securities, which analysed the data of Morgan Stanley Capital International (MSCI), said only the Indonesian market had performed better than KSE.
Experts said that almost all markets in MSCI Asian Emerging and Frontier markets showed declining trend, as India and China, the two major markets were down by 26 percent and 24 percent, respectively. Pakistan with negative 5 percent return becomes the second best performing market amongst 12 countries in Asia.
Resurgence of US crisis coupled with headwinds in eurozone saw huge selling in global equity markets as risk-averse offshore investors moved to safe heavens. The MSCI All Country World Index has slumped by 8% in 2011 till October 18 on concerns about the world economy and the lack of any credible solution to Europe’s debt issue, the reason also why most Asian Emerging and Frontier markets have posted negative returns so far in 2011.
Interestingly, Pakistan with negative 5 percent return is so far the second best performing market amongst these 12 countries (including 4 in MSCI FM & 8 in MSCI EM). However, amongst 4 MSCI Asian Frontier markets, Pakistan outperformed all other markets with a big margin.
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