KSE—the best performing market in the world. LONDON: Karachi is also home to one of the world’s best-performing stock markets. The Karachi Stock Exchange (KSE) has risen by 40% in local-currency terms so far this year—of the stock markets tracked by The Economist, only Japan’s has performed better. The KSE sizzled last year, too, posting a gain of 49%. Some of this reflects the country’s potential. Pakistan’s prospects have been buoyed by the election in May, the first time a fairly elected civilian government served a full term and handed over to another. The KSE’s rise also reflects investors’ enthusiasm for “frontier markets”, the world’s wilder bourses. More familiar emerging markets have lost momentum recently, but the MSCI frontier-markets index has kept climbing. As the name suggests, however, frontier markets are not for the faint-hearted. The KSE is illiquid: only 60 of its 569 listed companies trade regularly. Its soaring performance can partly be attributed to an amnesty announced in January 2012, which allows people to buy stocks until June 2014 with no questions asked about the source of funds. After the amnesty began the average daily volume on the KSE, which has a market capitalisation of only $52.7 billion, more than doubled. Karachi Stock Exchange (KSE) with the very ‘go’ of trading was seen buoyant Friday morning, The investors preferred to go for buying profitable shares, which saw till the filing of this report the benchmark KSE-100 index surging by 48 points to peg at 23,622.
Posted on: Sat, 27 Jul 2013 08:30:49 +0000
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