‘Pak stock market fifth best in world’

Bloomberg report terms Brazil the best; Nigeria worst; SBP says fiscal, current account deficits to increase; growth remains stable

ISLAMABAD: Pakistan Stock Exchange (KSE- 100 Index) has been ranked the 5th best performing stock market in the world in the year 2016 by Bloomberg.

With Karachi 100 Index gaining 43.05%, Pakistan remained the 5th best performing stock market in 2016, after Brazil IBOVESPA Index (63.36%), Kazakhstan KASE Stock Ex (59.95%), S&P/BVL, Peru General TRPEN (59.15%) and Russian RTS Index $ (50.03%), according to the World Equity Indices table posted by Bloomberg on its website. Nigeria Stock Exchange was considered the worst performing stock market (-41.35).

The Bloomberg in its report titled "Here Are the Best and Worst Performing Assets of 2016" analysed the performance of different countries and regions in 2016 in terms of currencies, equities, commodities and bonds. --APP

Erum Zaidi adds from Karachi: Meanwhile, the State Bank of Pakistan (SBP) on Friday widened its view of this year’s current account deficit to 1.0-2.0 percent of gross domestic product from 0.5-1.5 percent forecast in November 

The SBP said the country’s fiscal and current account deficits are poised to widen during the current fiscal year.  “Given the revenue shortfall during Q1-FY17, achieving the annual fiscal deficit target of 3.8 percent of the GDP would be challenging,” the bank said in its first quarterly report for 2016/17 on the state of economy. “It will require addition fiscal consolidation efforts on the part of the government.” 

It said the y-o-y increase in fiscal and current account deficits in the first quarter was also driven by the absence of inflow under the Coalition Support Fund.  In case of the current account, addition pressure came from a widening trade deficit and a fall in workers’ remittances, the bank said. 

However, the central bank was upbeat on growth prospective, saying preliminary macroeconomic data signals a stable growth momentum during the year. “The improved performance of sugarcane and maize, better supply situation of fruits and vegetables and steady increase in the global prices of cotton and sugar, are key positives for growth outlook,” the SBP said.