In a remarkable achievement, the benchmark KSE-100 index of the Pakistan Stock Exchange has outperformed the S&P 500 and India’s Sensex over the past 10 years. According to Mattias Martinsson, a partner at Tundra Fonder and a leading emerging market pioneer in Scandinavia, the KSE-100 index has demonstrated a compound annual growth rate (CAGR) of 9.2 percent in USD terms over the past decade.
This impressive performance surpasses the S&P 500, which recorded a CAGR of 6.6 percent, and India’s Sensex, which matched the S&P at 6.6 percent over the same period. Martinsson noted that the resilience of Pakistani corporates during crises has been a key factor in the index’s outperformance.
In a post on LinkedIn, Martinsson stated that Tundra Fonder’s long-term case for Pakistan has never been about an imminent revaluation or impressive reforms, but rather the ability of Pakistani corporates to outgrow their emerging market peers, including India, in USD terms. He added that despite the index’s 100% bounce from its bottom, there are still fewer cries about an imminent collapse in profits.
The KSE-100 index’s outperformance is a testament to the strength and resilience of the Pakistani economy and its corporate sector.
