KARACHI: The second half of the outgoing year saw the benchmark of the Pakistan Stock Exchange (PSX) gain a staggering 54 per cent in dollar terms, making the national bourse the best-performing equity market globally.

Based on data obtained from financial services firm Bloomberg, an analysis released by Topline Securities Ltd showed on Friday that the annual gain in the KSE-100 index remained 24pc in dollar terms.

The benchmark provided a gain of 55pc in rupee terms in the outgoing year.

In July-December, a better-than-expected Stand­by Arrangement with the International Monetary Fund (IMF), followed by a successful completion of the first IMF review, a stable currency and the announcement of general elections helped improve investors’ sentiments.

This sudden recovery in prices has also been accompanied with a significant improvement in trading activity with daily volumes in the ready market going up 41pc to 323 million shares in 2023, highest since 2021.

Similarly, the average traded value per day went up 45pc to Rs10 billion in the cash market, also highest since 2021.

The KSE-100 index also outperformed other asset classes in 2023, including one-year dollar-based Naya Pakistan Certificate (up 33pc), the dollar (24pc), treasury bills (23pc) and gold (21pc).

Foreign corporates became net buyers in 2023 with a net purchase of $73m after three years and the highest inflows after eight years. In contrast, foreign corporates sold shares worth $1.1bn in the preceding three years (2020-2022).

Companies and individuals remained net buyers in 2023 where companies bought shares worth $128m while individuals purchased stocks worth $27m. However local mutual funds and banks trimmed their positions in 2023 with a net selling of $132m and $61m, respectively.

The PSX saw just one IPO in 2023, with total raised funds amounting to a meagre Rs435m. This was the lowest amount raised in a year in the past decade and a half.

Published in Dawn, December 30th, 2023