Pakistan now Asia's second worst performing market: research report
RECORDER REPORT



KARACHI (August 27 2008): Pakistan has become the second worst performing market in Asia, as after posting average annual gains of 28 percent during the last 10 years, it is down by 45 percent in US dollar terms in the current year from January 01, 2008 to date, analysts said.

"The slowdown in the overall economy, coupled with political uncertainty after the February election has affected investors' sentiments, Mohammed Sohail, senior analyst at JS Global Capital said in a research report and added that a decline of 19 percent in Pakistan currency to date has also eroded equity values in dollar terms.

The research report said that the global credit crunch and the turbulence in the currency markets have significantly shaken investors in the global equity markets. The emerging markets which were believed to be protracted with global credit crunch, spiralling inflation at the back of soaring oil and food prices, led these markets to drop significantly so far in the calendar year 2008. MSCI Asian Emerging Market Index is down 29 percent to date.

Analysing the performance of 13 Asian emerging countries, China 's Shanghai market ranks the worst performing market so far in 2008 with the index fell by 52 percent. This is followed by Pakistan and Vietnam which are down 45 percent and 44 percent in dollar terms, respectively.

China's Shanghai Index which had recorded a peak level of 5771 in the early 2008, is down due to rising concern over slowdown in economy and mounting inflation - or stagflation. Likewise, in Vietnam, recent ratings cut and record inflation have worsened market sentiments.

Pakistan, on the other hand, is affected both by the exogenous factors (higher international oil and food prices) and endogenous factors (political impasse). This has significantly weakened the local currency (down 19 percent so far in 2008) and forex reserves which are at 5-year low and covers less than 12 weeks of imports.

Moreover, Pak rupee is the world's fourth worst performer, behind the Zimbabwean dollar, Turkmenistan manat and Icelandic korona. Interestingly, two smaller markets Sri Lanka and Bangladesh have emerged as the best performing markets so far in 2008 with a decline of only 6 percent and 10 percent in dollar terms, the report said.


Copyright Business Recorder, 2008


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Here We Go! A gift from democratic forces to the people of Pakistan

Demo-crazy zindabad.

I guess time for me to go around the streets handing sweets to everyone ...

demon's crazy system already paying massive dividends

Don't say we had not predicted that.

But this is what some of our friends on this forum and the people of pakistan wanted and this is exactly what they are getting ohh and when the poor people of pakistan dont have anything to eat they can eat chief justice, lawyers movement and democracy with a sauce of MR 10% on it.


SPEEDY
enjoy

No one has confidence in business anymore, especially with criminals in charge. The slide has happened far faster with Mushy’s departure.

This is all because the US shove democracy down Pakistanis throat. A discipline authoritarian regime like pinochet in Chile or Suharto in Indonesia would have kept the economy growing for decades.

Exactly... and this isn't true democracy as well... these thugs don't even honor their commitments with each other ala The agreement on restoration of deposed judges... what to talk about honoring their commitments and fulfilling their responsibilities to the nation... these r just looters and plunderers out there to plunder Pakistan as if there is no tomorrow hence i have atleast named the ruling PPP as Pakistan Plunderers Party. Enjoy your ###### democracy, people.

well said bro well said.

Don't worry ........ we'd be #1 soon.

and suporters of PML-N/PPP will keep finding excuses.

I wonder where are all those people? Must be really enjoying the fruits of democrazy haan!

why do you guys think Mushy was responsible for the economic success, but forget the mess he has left on our western border. his economic success was actually hiring Shaukat Aziz nothing more. Shaukat Aziz is who turned the economy around. and even this is dwarfed by the magnitude of the mess left by Musharaf on the western border.

Tyranny is no answer, we need a sensible system of government, the Zardari/ NS era is somethign we will have to swallow while we develop a better system. But these things take decades (as they have done in other countries). You guys have unrealistic expectations where you want someone to flick a switch and have success without putting in the hard work needed to gain the eventual rewards. All have had their Zadaris before, They learnt from them and evolved. going back to a dictatorship is foolish, as you are only going backward. As for Pinochet and Suharto, they must have been such a success that they were both deposed and regarded as criminals by their people(Pinochet was CIA backed tuttoo). Hardly acts for us to follow.

What's wrong with tyranny? It gets results.

After all the instability that pakistan keeps being subjected to via dictatorship..it seems we are happier with that then giving democracy a chance to stabilize and lead the country out of the mess of having random hotshots come and go and with bring and take with them the fortunes for the country.