The Pakistan Stock Exchange (PSX) faced the effects of international and domestic economic disruptions, with the value or market capitalisation of all its listed companies registering a drop of 17% (in rupee terms) to clock in at Rs6.4 trillion.

The decline was more severe when seen in context of the US dollar, as market capitalisation plummeted 35% to reach $28 billion, said Topline Securities in a report on Saturday.

However, despite the volatility, certain sectors at the PSX registered significant growth during 2022, found the brokerage house.

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As per the report, Real Estate Investment Trust (REIT), synthetic & rayon, and sugar were the top-performing sectors in 2022 as their market capitalisation increased by 12%, 6% and 5%, respectively, despite poor market conditions.

- Top-performing stocks of the year (based on adjusted prices)

• Lotte Chemical (LOTCHEM) with gain of 117%

• Faysal Bank (FABL) with gain of 35%

• Unilever Pakistan Foods (UPFL) with gain of 34%

• Systems Limited (SYS) with gain of 31%

• Pakistan Oilfields (POL) with gain of 31%

Moreover, technology sector was up 2% and outperformed the market despite a fall in globally listed technology stocks.

“REIT sector that has only one listed company gained in 2022 due to stable dividend yield coupled with changes in regulations on REIT investment for banks,” said Topline Securities. “To recall, the State Bank of Pakistan (SBP) recently allowed banks to count their investments in shares issued by REIT towards the achievement of housing and construction finance targets.”

Meanwhile, synthetic & rayon also posted strong performances, led by a rally in Ibrahim Fiber Limited (IBFL). The sugar sector’s performance was led by JDW Sugar Mills (JDWS), which announced a buyback.

On the other hand, the report found engineering, automobile parts, and miscellaneous sectors among the worst-performing sectors posting a decline in market capitalisation of 45%, 41% and 34%, respectively, in 2022.

- Worst-performing stocks of the year (based on adjusted prices)

• Air Link Communication Limited (AIRLINK) with loss of 54%

• Gul Ahmed Textile Mills Limited (GATM) with loss of 52%

• The Searle Company Limited (SEARL) with loss of 52%

• Mughal Iron & Steel Industries Limited (MUGHAL) with loss of 50%

• Unity Foods Limited (UNITY) with loss of 46%

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“Engineering sector (mainly steel-related companies companies) was badly impacted due to economic slowdown and lower construction activity.

“Automobile parts sector also remained among worst-performing sectors primarily due to import restrictions, high financing rates and demand slowdown,” it said.

Among companies, Topline found Lotte Chemical (LOTCHEM) as the top-performing stock in the market in 2022, where the stock gained 117%.

“Investors were excited over potential sell-off by Lotte Chemical Corporation South Korea (a parent company of LOTCHEM) and subsequent public offer for minority shareholders,” it said.

LOTCHEM was followed by Faysal Bank (FABL) and Unilever Pakistan Foods (UPFL), showing a stock growth of 35% and 34%, respectively.

“The strong stock performance by FABL is on the announcement to convert into an Islamic Bank followed by a special dividend. Similarly, UPFL stock was up 34% as the company posted strong profitability growth of 33% YoY in 9M2022.

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On the other hand, Air Link Communication (AIRLINK) shares were the worst-performing scrips in 2022, as its stock value plummeted 54% due to low profits led by lower volumetric sales.

“Gul Ahmed Textile Mills (GATM) also reported a decline of 52% amid a slowdown in textile exports.

“Searle Company Limited (SEARLE) was down 52% due to lower profits, led by falling gross margins driven by a significant jump in raw material cost and company’s inability to immediately pass full impact on to consumers,” said Topline.