Bloomberg says Pakistan’s stocks cheapest in Asia, may rise by 23% by end 2010
The KSE is on a bull run (Image credit: Reuters file photo)
The KSE has been a star performer for many years, and despite the dips in 2009 – mostly due to the global recession and associated troubles – the exchange is back with a bang! The chart has been trending solidly upward with the KSE index breaking the 10,500 pt psychological barrier and establishing a 19 month high in the last week. Bloomberg, via Business Week, reports that despite the uptick, Pakistani stock valuations are still very inexpensive and can easily power the KSE index an additional 23% before the end of the year.
Bloomberg says:
The [KSE index] gauge has climbed 13 percent this year, extending last year’s 60 percent advance as overseas investors bought more equities in South Asia’s second-largest economy. Gross domestic product may grow 3.4 percent in the financial year ending June 30, after a 2 percent gain in the previous year, according to the Finance Ministry.
This is great news for investors – foreign and domestic – and it is a firm sign that the Pakistani economy is recovering rapidly. Another sign of renewed vitality is the Wateen Telecom IPO which has been received rather well. Wateen hopes to raise over Rs. 2BN on this initial offering.
For more information on the Bloomberg story, please visit this link, and for further news about the Warid IPO, please click here.
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