Pakistan’s stock market leaves India in the dust
NEW DELHI/KARACHI: Pakistan’s stock market has outperformed the Indian equity market with a huge gap since the beginning of the new century.
Indian paper Economic Times cited Bloomberg data as showing that over the past 16 years, the (Morgan Stanley Capital International) MSCI Pakistan index climbed over 14 per cent in dollar terms on a compounded annual growth (CAGR) basis, while the MSCI India index has advanced 8.39 per cent annually during the same period.
The KSE100 index of the Karachi Stock Exchange rallied 2,625 per cent from 1,772 in January 2000 to around 48,300 in December 2016, while the Sensex of the BSE advanced 431 per cent in this period.
KSE100 tracks the performance of biggest companies by market capitalisation from each sector of the Pakistani economy listed on bourses.
On the hand, the 30-share Sensex jumped from 5,005 in December 1999 to 26,626 on December 30, 2016.
Among other emerging markets, the Chinese equity indices have underperformed both Indian and Pakistani equity markets since the year 2000. China’s Shanghai Composite index advanced 120 per cent to 3,103 till December 2016 from 1,406, where it was trading at in January 2000.
According to a Forbes report, published in September 2016, 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 Pakistan ETF was up 20%, beating India’s and China’s comparable ETF’s by almost two to one.