Pakistan stocks at historic high, but share prices still around 50% lower than 2017 levels
Number of listed companies decline to 560 companies from 531 companies in 2017
Pakistan stock market is celebrating a milestone as the KSE 100 Index closed above the 100,000 mark for the first time. However, in dollar terms, the return on investment still is around 50% less for those who entered the market in May 2017 and kept their investments intact.
Market capitalization – the total value of shares traded on the stock market - in May 2017 was nearly $100 billion, but at today’s share prices, it stands at just $46 billion.
Analysts believe that the depreciation of the Pakistani rupee has significantly eroded stock investors’ returns in dollar terms.
Despite this, comparisons with the 2017 market capitalization suggest that shares remain undervalued, with potential for future gains.
The current price to earnings ratio of 5.5x is still below the historical average of 7.25x, indicating potential for further growth.
The number of listed companies on Pakistan stock exchange has also declined to 531 companies presently from 560 companies in 2017.
Popular
Spotlight
More from Business
Workers’ remittances to reach $35 billion this fiscal: Aurangzeb
Multinationals urged to focus on exports, import substitution
Comments
See what people are discussing