PSX becomes Asia’s best performing stock market

NEW YORK: The Pakistan Stock Exchange (PSX) has won the title as the best Asian stock market and has become 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,” said a report from Market Current Wealth Net, a New York-based global financial markets research firm.

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 report said.

“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 said last week.

The PSX had won the title of best Asian stock market in 2016. Later, it emerged as the worst-performing market in the world after foreign investors withdrew investment after the government increased the capital gains tax (CGT) on the sale of shares to 15% in 2017.

The KSE-100 index gained almost 52%, or 14,000 points, in the past five-month period to close at 41,377 points on Tuesday from 27,267 points when the government imposed a lockdown on 24th March.

The stock had lost 37 percent, or around 16,000 points, in response to the coronavirus-induced health crisis to 27,267 points in March compared to 43,207 points on 10th January.

The stocks leading the upward rally at the PSX included construction and allied industries like cement and steel, banks, pharmaceutical and fertiliser, and oil and gas exploration.

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