KARACHI, Jan 5: Main Karachi stock market in Pakistan dropped by 20 per cent in dollar terms during the year 2001, which placed it at a low 11 place in a sample of 16 developed and emerging markets, a study by Muhammad Faisal Potrik, analyst at brokerage house, Invest Capital and Securities indicated.

After outperforming all leading emerging markets (except China) in 2000, the Pakistani stocks failed to give an impressive performance in the year 2001, analyst said and added: “Had there been no appreciation of the rupee in the last quarter of 2001, the slide could have been much deeper”. But the relatively better performance of the Pakistani stocks in 2000, had more to do with the fact that unlike other developed markets, there were no listed IT stocks on our market, which had taken the worst beatings elsewhere.

In the developed markets, Nasdaq, on the Wall Street, was down by approximate 20 per cent during the year, as most of the start-up dot com’s pulled down the shutters. However, the old economy stocks recovered well after a massive fall post the September 11, with Dow Jones slipping by just 5 per cent for the year. Japan’s economic woes continued to reflect on the Nikkei which lost 38 per cent of the value in dollar terms — about the same as it had shed in 2000.

In emerging markets, South Korea was the best performing market, posting 28 per cent jump in the Seoul Composite index. But analyst said that part of the reason for such excellent performance was that South Korea had low base as it had experienced the worst fall of 61 per cent the year earlier (2000).

China, which was the best performing market in 2000 with its Shanghai Composite Index climbing by a steep 50 per cent, lost 17 per cent value during 2001. Thailand recovered with 10 per cent increase in stock values, compared with a huge 60 per cent plunge the year before. Taiwan also gained 7 per cent, whereas it had lost 50 per cent in 2000.