KARACHI: The Pakistan Stock Exchange (PSX) has been declared Asia’s best-performing market and fourth best-performing market across the world in 2020.
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.
A development local economists view as a signal that the country’s otherwise contracting economy is recovering.
“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.
At a time when most of the world is still grappling with COVID-19 and its effects on the economy, normalcy has almost returned to Pakistan. 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 move had boosted the stock exchange by more than 50% from its recent low-point due to the last two years of poor performance.