Pakistan Stock Exchange named best performing in Asia

The Pakistan Stock Exchange (PSX) has been declared Asia's best-performing market_ a development local economists view as a signal that the country's otherwise contracting economy is recovering. A New York-based global markets research firm_ marketcurrentswealthnet.com_ in its report published Tuesday_ also declared the PSX the world's fourth best-performing market. "Pakistan's stock market has become the best performer in Asia and the fourth-best-performing stock market in the world_" according to the report_ titled Denmark and Pakistan: the surprising stock markets that outperformed in 2020. "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_" it added. Previously_ the Pakistan Stock Exchange had been named as Asia's best performer in 2016. Endorsing the report_ Mohammed Sohail_ a Karachi-based economist_ viewed the development as a good signal for the country's tottering economy. "This is a signal that the recovery of the country's economy is underway_" Sohail_ the head of a leading brokerage firm_ told. He said an "unexpected" success in the battle against the novel coronavirus pandemic_ followed by a government economic stimulus package and the low base effects of the previous two years were the key reasons behind the development. "At a time when most of the world is still grappling with COVID-19 and its effects on economy_ normalcy has almost returned to Pakistan_ which is further underpinned by an economic stimulus package_ mainly for the industrial and construction sectors_" he maintained. Following the reopening of all businesses in Pakistan_ Islamabad is currently following a "mini smart lockdown" strategy under which_ instead of entire urban areas or buildings_ only those houses or workplaces where infections are reported will be sealed. The government's moves_ Sohail went on to argue_ had boosted the stock exchange more than 50% from its recent low-point due to the last two years of poor performance. "This time [after 2016] the development is more significant because it has performed well at a time when global economies are struggling to cope with the negative effects of a global pandemic_" he added. - source: Anadolu Agency