Battling COVID, PSX emerges as best performing bourse in Asia

Despite economic upheavals caused by the coronavirus pandemic, the Pakistan Stock Exchange (PSX) has managed to maintain its run and was declared as the best performing bourse in Asia.

The bourse has also become the fourth best-performing markets as per the latest report titled Denmark and Pakistan: the surprising stock markets that outperformed in 2020 issued by New York-based research firm, marketcurrentswealthnet.com.

"PSX benchmark KSE-100 index has given a return on investment of 38.5 percent in dollar terms as foreign capital has been flowing into the market as the yield on the nation's bond fell below double digits," said the report.

"Once again, Pakistan Stock Exchange (PSX) wins the title of Best Asian Stock Market. PSX becomes the fourth best-performing market across the globe in year 2020 as the government successfully puts the economy back on track!" said PSX on its twitter handle.

According to the Economic Times, the State Bank of Pakistan (SBP) has been more aggressive in cutting interest rates and stimulating the economy than many of its counterparts.

Meanwhile, the development is being viewed by financial analysts as a good sign for Pakistan economy.

"This is a signal that the recovery of the country's economy is underway," Mohammed Sohail, of Topline Securities, quoted Anadolu Agency.

The economist was of the view that country’s success against the coronavirus pandemic, as the government has managed to curb down the spread of the virus and the number of people getting affected by it declines alongside an economic stimulus package has lead to the development.

He said due to the measures taken ‘normalcy’ has almost returned to Pakistan, and the economy has got the much-needed boost in the form of a stimulus package announced for the industrial and construction sectors.