Pakistan stocks world's worst: Credit Suisse
Wednesday, 13 May 2009
KARACHI, May 12 (Bloomberg): Pakistan's benchmark stock index, the world's worst performer over the past month, may rebound as the country intensifies its attacks against Taliban militants, Credit Suisse Group said.
The Karachi Stock Exchange 100 Index, or KSE 100, as the index is also known, may climb to 9,000 if the country's military campaign is successful, Credit Suisse said. The measure added 0.4 per cent to 7,153.19 as of 10:20 a.m. in Karachi.
The gauge dropped 6.1 per cent over the past month, making it the world's worst performing index, according to data tracked by Bloomberg. The index was the fourth-best performer in the first quarter after advancing 17 per cent.
"If all progresses well in the war against the militants, then we could see a 25 per cent upside from current index levels," Farid Khan, an analyst at Credit Suisse, said in a phone interview from Karachi today. Inflation at 17.19 per cent in April was largely in-line with expectations, he added.
Prime Minister Syed Yousaf Raza Gilani said yesterday the army would defeat Taliban militants after his government said that troops backed by helicopter gun ships in the northwest killed more than 700 guerillas in the past two weeks.
Pakistan's inflation eased to a 13-month low in April, giving the central bank room to further cut interest rates, he said. Consumer prices in South Asia's second-largest economy rose 17.19 per cent from a year earlier after gaining 19.07 per cent in March, the Federal Bureau of Statistics said on its Web site yesterday.
The Karachi Stock Exchange 100 Index, or KSE 100, as the index is also known, may climb to 9,000 if the country's military campaign is successful, Credit Suisse said. The measure added 0.4 per cent to 7,153.19 as of 10:20 a.m. in Karachi.
The gauge dropped 6.1 per cent over the past month, making it the world's worst performing index, according to data tracked by Bloomberg. The index was the fourth-best performer in the first quarter after advancing 17 per cent.
"If all progresses well in the war against the militants, then we could see a 25 per cent upside from current index levels," Farid Khan, an analyst at Credit Suisse, said in a phone interview from Karachi today. Inflation at 17.19 per cent in April was largely in-line with expectations, he added.
Prime Minister Syed Yousaf Raza Gilani said yesterday the army would defeat Taliban militants after his government said that troops backed by helicopter gun ships in the northwest killed more than 700 guerillas in the past two weeks.
Pakistan's inflation eased to a 13-month low in April, giving the central bank room to further cut interest rates, he said. Consumer prices in South Asia's second-largest economy rose 17.19 per cent from a year earlier after gaining 19.07 per cent in March, the Federal Bureau of Statistics said on its Web site yesterday.