KARACHI: The benchmark index of the Pakistan Stock Exchange (PSX) barely inched up in rupee terms during the outgoing calendar year, according to a research note released by Topline Securities on Thursday.

With only seven trading sessions remaining in 2021, the KSE-100 index has gained just one per cent in rupee terms while the dollar-based return is -9pc, it said.

Based on market capitalisation, technology and textile spinning remained the top-performing sectors with returns of 37pc and 35pc, respectively.

Tobacco and refinery sectors were the worst-performing segments with declines of 35pc and 29pc, respectively.

“Pakistan’s rising IT exports, the government’s focus on facilitating the IT sector and the devaluation have led to higher sales and profitability for the tech sector. The textile spinning sector posted strong gains in 2021 amid rising exports, record cotton prices and huge inventory gains,” said Umair Naseer, associate director of research at the brokerage house.

The top-performing share in 2021 was TeleCard Ltd as its value increased more than five times. “Investors were excited about rising profits and prospects of the company on the likely IPO [initial public offer] of its wholly owned subsidiary Supernet. Furthermore, the award of long-term business contracts to Supernet and the opportunities that may arise from the technology sector boom are also seen as positives for the stock,” said Mr Naseer.

TeleCard Ltd was followed by TPL Properties Ltd and Systems Ltd, which registered annual gains of 290pc and 100pc, respectively. TPL Properties Ltd completed the sale of its first property project Centrepoint in the first half of 2021 for roughly Rs8 billion. Systems Ltd, which is the country’s largest listed IT firm, remained among the top-performing stocks for the second consecutive year.

Published in Dawn, December 24th, 2021