Why would foreign investors prefer to invest in Pakistan over India?

November 24, 2020 (MLN): Why on earth would foreign investors prefer putting their money in Pakistan than the capital markets of India?

Taking to his Twitter handle, Founder and Chief Investment Officer at Tundra Fonder, Mattias Martinsson suggested investing in Pakistan over India by giving three strong arguments.

First, over the 10 years, Pakistan's benchmark index, the KSE-100, has outperformed India’s Sensex Index in terms of total returns (USD), depicting in a graph.

Second, the KSE index’s earnings per share growth have been higher in terms of USD when compared to Sensex’s earnings.

And lastly, the expectations are low i.e. price-earnings ratio (P/E) of KSE-10 index, a tool to determine a stock valuation is lower than Sensex P/E ratio over the ten years.

It is pertinent to mention that Pakistan's key index, the KSE-100 has consistently performed well and emerged as the best performer in Asia between February and March and the fourth best-performing stock market in the world, showing strong resilience against the COVID-19 which took the entire planet in its grip.

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