Salient to Investors:

Pakistan ranked first in risk-adjusted returns in the past 3 years – with stock volatility lower than 82 percent of other markets – and eighth over 5 years. The KSE 100 index is at 8 times reported 12-month earnings, a 25 percent discount to its 5-year average and less expensive than equity indexes in every major Asian market.

Euromonitor Intl said consumer spending in Pakistan has increased at a 26 percent average pace over the past 3 versus 7.7 percent for Asia. Higher rural incomes and record remittances outweigh violence and power outages.

Andrew Brudenell at HSBC Frontier Markets Fund said stocks are very cheap there is more upside to come.

Muhammad Umair Chauhan at Lakson Investments SAID Equity volatility is low partly because investors are no longer surprised by violence in Pakistan.

The KSE 100 index dividend yield is 6.6 percent versus the 3.3 percent average in Asia.

Adnan Katchi at Arif Habib said overseas holdings amount to 20 percent of the bourse’s free float.

Sajjad Anwar at NBP Fullerton Asset Mgmt is expecting a correction, and says some of the big players are on the selling side – investors will rethink after the earnings season ends.

Slim Feriani at Advance Emerging Capital said companies can make excellent returns in particularly hard to operate in markets with limited competition,”

Muhammad Abdul Samad at Atlas Asset Mgmt said companies are doing well so ultimately the economic prospects will get better.

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