South Asia Investor Review

Pakistan's KSE-100 continues to offer attractive valuations for investors in 2017.  Its equities are trading at a forward price-earnings ratio of just 9.1, according to Pakistani brokerage firm Arif Habib Limited . Pakistani shares are on offer at a deep discount to the Indian shares trading at 17.3 price-earnings multiple. While India's stock market is among the world's most expensive, the Pakistani market is among the cheapest.  Pakistani shares are now trading at 47.3% discount to Indian shares. In spite KSE-100's major run up of 46% in 2016 , far outpacing India's Sensex's 2.57% rise and MSCI emerging market's 8.42% increase, Pakistani equities (PE ratio 9.1) are still cheaper than Asian emerging markets (12.1) and China (11.9), according to published data .  Pakistani shares are now trading at 47.3% discount to Indian shares, 31% discount to Asia Emerging Market index and 23.5% discount to Chinese shares. Consumer confidence index in Pakistan...

Pakistan's KSE100 (Karachi Stock Exchange 100) index closed the year 2016 as the world's best performing stock market index over one-year and five-year periods, according to data available from  Bloomberg . It has not only outperformed India's Sensex index but also the Morgan Stanley Emerging Markets index. Source: Bloomberg Pakistan's key index KSE-100 has rocketed up nearly 46% in 2016, far outpacing India's Sensex's 2.57% rise and MSCI emerging market's 8.42% increase. Similarly, over 5 year period, KSE-100 has soared 321% vs India's Sensex rise of 72% and Morgan Stanley emerging market index decline of 7.72%. Source: Bloomberg Pakistani stock market gains are driven by multiple factors. Dramatically improved security has brought investors and accelerated the nation's GDP growth. Adding to that is the optimism accompanying Morgan Stanley's decision to bring Pakistan back into its emerging market index that has spurred more buyi...

The Shanghai Stock Exchange has submitted a letter of intent to buy up to 40% stake in the Pakistan Stock Exchange, according to  report in The Nikkei Asian Review.  The Shanghai Stock Exchange has the world's fourth largest market cap. The possible Pakistan tie-up could encourage Chinese companies to expand into the South Asian country and perhaps even list on the PSX. In August this year,  Bloomberg News  reported Shanghai Electric's US$1.6 billion for 66% stake in K-Electric, Karachi's main electric utility. Multinational Acquisitions in Pakistan:  In July 2016, two  multinational giants  acquired  2 Pakistani companies  as part of their growth strategy to establish presence in Pakistan. Dutch dairy giant FrieslandCampina acquired 51 % of Karachi-based Engro Foods Limited, the second largest dairy producer in Pakistan. In the same week in July, Turkey's Arcelik announced purchase of Dawlance, Pakistan's market-leading home a...