Pakistan stock market returns

[shalab]

One would have thought Pakistan is a basket case and a terrorist den. Its GDP is around 1% of US GDP in USD terms. It has a population of about 220mm, about 2/3rd US population and about 30% more land area than Texas.

 

However, the stock return(s) point to something else - looks like it did very well and one of the best performing stocks after 9/11. 

 

https://www.theglobaleconomy.com/Pakistan/Stock_market_return/

 

US investors can invest in it using the PAK ETF.

 

It also did mcuh better than India.

 

cheers!

Shalab

 

[thowed]

I've had a little look at this stockmarket, and this is what I found so far:

 

It has done well, but is obviously very volatile.

 

The index did the classic thing where it ran up in anticipation of moving from being a Frontier market to an EM market, and then dropped after that.

 

The political situation in 2017 (where the PM was removed) wasn't helpful.  I don't know what to expect from Imran Khan - he's a relative political outsider.

 

Corporate Governance is a minefield, but there appear to be certain companies which pass a reasonable bar.

 

It's probably worth looking at companies who have JVs with companies with established corporate governance from other countries.

 

Things are pretty cheap at the moment.

 

There could be some ugly arguments with China over the Belt & Road investments, especially with the deep port in Baluchistan.

 

I haven't invested there - I have no edge - but it's always fascinating to take a dip in countries like this.

 

Oh, and the food's great, from domestic experience with Pakistani curry houses!