Pakistan equities outshine all major asset classes in 2024

Pakistan’s equities remained the best performing asset class in 2024 outshining gold, USD and real estate.

Equity market delivered a remarkable 75% return from January 1 to December 20, inclusive of dividends.

Gold also posted significant gains, increasing by 24% in the local market, climbing from PKR 189,386 to PKR 234,311 per 10 grams.

Internationally, gold rose from $2,092 per ounce on December 29, 2023, to $2,617 per ounce on December 20, 2024.

The US Dollar, a popular choice for Pakistani investors in recent years, yielded a negative 1% return, falling from PKR 282 to PKR 278 in the interbank market.

This contrasts with returns of 24% in 2023 and 28% in 2022. Investors could have secured gains of 1-4% with US Dollar deposits, depending on interest rates.

Reports indicate a shift towards fixed income and low-risk investments due to high interest rates during the year.

The average bank savings rate in 2024 was 18%, while the National Savings 3-Year Special Savings Certificate offered a 17% return.

On the other hand, local asset management companies' money market funds averaged a 19% return.

The Naya Pakistan Certificate under the Roshan Digital Account generated a 22% return in PKR terms. Investors in government securities also benefited, with PIBs yielding 27% and T-Bills providing a 21% return, assuming 3-month T-Bills were reinvested quarterly.

The property market presented mixed results. In Lahore, commercial and residential plot prices dropped by 11%, while house prices rose by 14%. In Karachi, commercial plots decreased by 10%, with residential plots and houses increasing by 5-7%.