PSX skyrockets 53% in 2023, outshines other assets

 December 26, 2023 (MLN): After a period of relative stagnation, the Pakistan Stock Exchange (PSX) experienced a meteoric rise in 2023 within the investment landscape, marking a gain of 53% from January 01, 2023, till Dec 22, 2023. 

This gain is inclusive of dividends received during this period, a report by Topline Securities noted.

Another favourite investment for local Pakistanis has been the US Dollar in the last few years. In 2023 it provided a return of 25% gaining from Rs226 to Rs283 in the interbank market and 21% from Rs236 to Rs285 in the open market.

If this amount is invested in a 1-year term deposit at the beginning of the year the gain would have increased to 29% at the interbank dollar and 25% at the open market, assuming a return of 4% on USD deposits, it noted. 

Similarly, the holder of Naya Pakistan US$ Certificate under Roshan Digital Account (RDA) also made 33% in PKR terms due to falling PKR value.

Gold that provided an above-average return in the last few years to local investors posted decent gains. In 2023 it gained from Rs157,836/10 grams to Rs186,900/10 grams providing a profit of 18%.

In the international market, it also increased from US$1,826/ounce on December 30, 2022, to $2,065/ounce on Dec 22, 2023.

Another widely discussed investment avenue has been Government T-Bills. Amid tightening monetary policy, the government has to raise interest rate rates to record highs. As a result, investors in T-Bill made a 23% gain in 2023.

The report assumed investment in 3-month T-Bills which were actively traded being reinvested every 3 months.

Many investors moved to fixed-income low-risk avenues in 2023 due to high rates.

Within the fixed-income market, the average bank saving rate remained at 17% in 2023 while the National Savings 3-year Special Saving Certificate (SSC) provided a gain of 13%.

Local AMCs' money market funds generated an average return of 20% in 2023. Though many investors remained out of the property market, as per Zameen.com, real estate (Houses, Residential and Commercial Plots) in Karachi went up 6-29% in 2023.

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