KARACHI: Pakistan Equities outperformed major asset classes in 2024 as the benchmark KSE-100 Index provided a gain of 75 percent (Jan 01, 2024, till Dec 20, 2024) with 6 trading sessions left in 2024.
This gain is inclusive of dividends received during this period, Topline Securities research report said.
Gold has also posted a decent gain, recording the third-largest increase. In 2024 it gained from Rs189,386/10 grams to Rs234,311/10 grams providing a profit of 24 percent. In international market it also increased from $2,092/ounce on Dec 29, 2023, to $2,617/ounce on Dec 20, 2024, it added.
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Another favourite investment for local Pakistanis has been US Dollar in last few years. In 2024 it provided a negative return of 1.0 percent declining from Rs282 to Rs278 in the interbank market compared to return of 24 percent and 28 percent in 2023 and 2022, respectively, the report said.
However, if this amount had been invested in a 1-year term deposit at the beginning of the year, the gain would have been 1-4 percent, assuming a return of 2-5 percent on US Dollar deposits.
Many investors moved to fixed income and low risk avenues in 2024 due to high interest rates. Within fixed income market, average bank saving rate remained 18 percent in 2024 while National Savings 3 year Special Saving Certificate (SSC) provided a gain of 17 percent. Local AMCs’ money market funds generated an average return of 19 percent in 2024.
Similarly, holders of the Naya Pakistan PKR Certificate under the Roshan Digital Account (RDA) also earned a 22 percent return in PKR terms.
Another widely discussed investment avenue has been government PIBs and T-Bills. Amid a tightening monetary policy, the government has raised interest rates to record highs. As a result, investors in PIBs earned a 27 percent gain in 2024. Similarly, investors in T-Bills earned a 21 percent gain in 2024. “We assumed investments in 3-month T-Bills (which were actively traded), reinvested every three months. In the 1-Year T-Bill, investors also earned a 21 percent return in 2024.”
Many investors also invested in the property market. According to Zameen.com, prices of commercial and residential plots in Lahore declined by 11 percent, while house prices increased by 14 percent in 2024. However, in Karachi, prices of commercial plots declined by 10 percent, while residential plot prices and house prices increased by 5-7 percent.
Copyright Business Recorder, 2024
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