KARACHI: Despite Covid-related challenges, the Pakistan Stock Exchange managed to close the fiscal year 2019-20 in the green, registering a gain of 1.5pc. “Pakistan’s stock market (has become) the best performer in Asia and the fourth best-performing stock market in the world,” marketcurrentswealthnet.com, the New York-based global financial markets research firm, reported on Tuesday. According to sources, The PSX benchmark KSE-100 index has given a return on investment of 38.5% in dollar terms as foreign capital has been flowing into the market after the yield on the nation’s bond fell below double digits, the firm said in a brief under the title“Denmark and Pakistan: the surprising stock markets that outperformed in 2020”. PSX is a high risk market, with intra-day volatility much higher compared to other markets. A more realistic method of comparing its performance would be the Sharpe Ratio, which compares the return per unit of risk.For foreigners, the PSX does appear to be a market which consistently generates high returns. As the market is virtually immune to global events, it is ideal for portfolio diversification for those for whom high market risk is not a problem.