KSE outshined global average, back in the top-5 equity-market slot.
Interestingly, with persistently climbing index, Pakistan equities regained their lost identity amongst the regional outperforming equities in February 2012. In global perspective, after lagging for the last few months, Pakistan’s equities stood above global average returns in February 2011 where regional as well as world equities also rallied on subsiding debt default fears previously furthered in the US and Euro zone economies. Not only did KSE-100 index outperformed its benchmark MSCI Frontier Market index by 2 percent but also the Emerging Markets by 6 percent as well as MSCI World index by 5 percent in February 2012.
Pakistan’s equities have now been gaining traction in the Asia Pacific region after marked improvement in liquidity and volumes which can be instrumental in attracting foreign investment in equities. The country desperately needs foreign exchange to consolidate its reserves position part of which could be achieved through stock markets by offering conducive environment.