Best performing stocks of FY24

June 28, 2024 (MLN): The Pakistan stock market recorded its best yearly return in over two decades, driven by optimism over improved economic conditions, enticing valuations, and the central bank's shift to monetary easing.

The KSE-100 Index climbed 89.2% or 36,992 points to 78,444.9 in fiscal year ending June 2024 to post its biggest yearly gain since FY 2003.

With the historic bull run of the Pakistan stock market's benchmark index, Mettis Global has listed the top-performing companies.

In percentage terms, the top-performing stocks during the year were SCBPL (+293%), SRVI (+268%), BAHL (+234%), MEBL (+219%), and FFBL (+213%).

Notably, three of the top five best-performing stocks were banks, as they benefited significantly from record-high interest rates of 22% for most of the year.

Meanwhile, Service Industries Limited (SRVI), one of the dark horse of the group, saw a remarkable 268% surge driven by the impressive performance of its tyre and tube segment, SLM.

Top stocks based on points added to the KSE-100 Index included HUBC (+3,282pts), UBL (+2,719pts), MEBL (+2,394pts), EFERT (+1,997pts), and BAHL (+1,945pts).

The Hub Power Company Limited (HUBC) took the top spot fueled by its diversification strategy and attractive dividend yields.

These five stocks accounted for 33% of the index's total return in FY24 due to their heavy weighting in the KSE-100 Index.

Worst-Performers

On the other hand, the worst-performing stocks during the year were TRG (-33%), LOTCHEM (-30%), GADT (-29%), UPFL (-19%), and RMPL (-6%).

In terms of index contribution, the worst-performing stocks were TRG (-347pts), LOTCHEM (-55pts), UPFL (-41pts), HABSM (-20pts), and GADT (-17pts).

Top Index Movers

The banking sector, benefiting from high interest rates, along with cyclical sectors like energy, fertilizer, and cement, led the rally.

Commercial banks alone added a significant 13,265pts points to the index, standing out as the top performers of the rally.

The sector’s financial results have also justified this rally. Earnings per share for the sector rose a combined 18% in the first nine months of FY24 from a year earlier.

Other top performing sectors based on points added were Fertilizer (5,072pts), Oil & Gas Exploration Companies (4,301pts), Power Generation & Distribution (4,193pts), and Cement (2,508pts).

The only sectors that landed in the red zone were Technology & Communication (-52pts), Textile Spinning (-17pts), and Sugar & Allied Industries, (-8pts).

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