Pakistan Stock Exchange has become best Asian stock market and the fourth best-performing market across the world in 2020.
“Pakistan’s stock market (has become) the best performer in Asia and the fourth best-performing stock market in the world,” marketcurrentswealthnet.com, the New York-based global financial markets research firm, reported on Tuesday.
According to sources, The PSX benchmark KSE-100 index has given a return on investment of 38.5% in dollar terms as foreign capital has been flowing into the market after the yield on the nation’s bond fell below double digits, the firm said in a brief under the title
“Denmark and Pakistan: the surprising stock markets that outperformed in 2020”.
“With the pandemic dwindling down and the reopening of business hubs across Pakistan, the PSX has defied odds and come out stronger. The stock exchange is Asia’s best performing market, up by 30% since March 2020,” the PSX reported on its official Twitter handle last week.
PSX CEO/MD Farrukh H Khan talked about it to a local source, “Pakistan has coped better with Covid-19 … (its) economy is rebounding much more strongly than other countries.”
Foreign investors, who remained net sellers at the PSX for the past couple of years, have emerged as net buyers in August 2020, he said.
He also said that the development became possible after Pakistan successfully dealt with coronavirus pandemic in terms of healthcare and economic management. He added that the government and the central bank took effective measures to control the coronavirus-related crisis.
“The government enabled the nation to meet day-to-day needs by disbursing cash to daily-wage earners and the needy under the Ehsaas programme and through the implementation of a smart lockdown strategy.”