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 $2,065/ounce on Dec 22, 2023.
Another widely discussed investment avenue has been Government T-Bills. Amid tightening monetary policy, the government has to raise interest rate rates to record highs. As a result, investors in T-Bill made a 23% gain in 2023.
The report assumed investment in 3-month T-Bills which were actively traded being reinvested every 3 months.
Many investors moved to fixed-income low-risk avenues in 2023 due to high rates.
Within the fixed-income market, the average bank saving rate remained at 17% in 2023 while the National Savings 3-year Special Saving Certificate (SSC) provided a gain of 13%.
Local AMCs' money market funds generated an average return of 20% in 2023. Though many investors remained out of the property market, as per Zameen.com, real estate (Houses, Residential and Commercial Plots) in Karachi went up 6-29% in 2023.
| Pakistan Asset Returns in 2023 (explanation) | |
|---|---|
| Category | Explanation |
| KSE-100 | Total Return with Dividend |
| Naya Pakistan US$ Certificate | Including 6.5% Return |
| Commercial Plots Price Index- Karachi | (Source: Zameen.com) |
| US$ | Interbank Market Rate |
| T-Bill | Reinvest after 3 Months |
| Gold | (Source: Karachi Saraf) |
| House Price Index – Karachi | (Source: Zameen.com) |
| Bank Saving Deposit | Avg Bank Rate from SBP |
| PIBs (3-Year Bond) | With Coupon |
| Special Saving Certificate (SSC) | First-year return |
| Naya Pakistan PKR Certificate | Investment at the beginning of 2023 |
| Residential Plots Price Index | Karachi (Source: Zameen.com) |
Copyright Mettis Link News
Posted on: 2023-12-26T09:39:11+05:00
