KARACHI: With less than 30 sessions remaining to the end of 2015, investors in stocks are not the happy lot they were the past two years when they earned average annual returns of 55 per cent a year.

For 2015, the KSE-100 index has to-date given return of a paltry 5.4pc, while MSCI Pakistan down 14.8pc.

Analyst Hamza Raza at Topline Securities said on Monday that one of the major reasons for below-par return has been the outflow of foreign portfolio investment.

In the current year, foreigners have been net sellers of stocks worth $259.6 million to-date.

The sentiments have been dampened by global uncertainty amid underperformance of the Chinese economy and falling commodity prices, especially decline in oil prices (WTI crude down 22pc YTD) that affects profitability of listed oil and related companies.

But while the market overall has remained ‘not-so-attractive’, some stocks have beaten the broader market. The outperformers are mainly small-cap companies, analyst pointed out. Associated Services (ASRL) tops the list as the stock has given adjusted return of 1,359pc YTD in 2015.

“The stock started its upward trajectory after the company received an offer from Macter International, a local pharmaceutical company, to acquire 85pc of the outstanding shares of ASRL.

Post-acquisition, the company will be revived for Macter’s pharmaceutical business for which land appearing on the books of ASRL (having market value of Rs98m) will be disposed,” analyst Raza explains.

Other stocks that outperformed the market include Noon Pakistan (NOPK), the maker of Nurpur butter and milk products which gave out return of 834pc YTD.

On the steel sector, stocks like Dost Steels, Crescent Steel (CSAP) and Mughal Iron and Steel had year-to-date (adjusted) returns of 357pc, 186pc and 178pc, respectively.

On the automobile sector, Ghandara Industries and Ghandara Nissan outperformed the broader market with a gain of 682pc and 275pc YTD, respectively.

Small-cap stocks such as TRG Pakistan gained 225pc YTD while PACE, a real estate development company provided returns of 150pc. Byco’s returns were 159pc YTD. Hascol Petroleum up 186pc YTD.

Published in Dawn, November 24th, 2015