ISLAMABAD (Daily Point) — After trailing behind in recent years, Pakistan Equities have taken the lead as top performers among major asset classes in 2023.

According to a report by Topline Securities, the benchmark KSE 100 Index has delivered a remarkable gain of 53 percent from January 1, 2023, to December 22, 2023, with four trading sessions still remaining in the year. This gain, inclusive of dividends received during this period, marks a significant resurgence.

Another notable investment trend among local Pakistanis in recent years has been the US Dollar, and in 2023, it has proven to be lucrative. The US Dollar showed a return of 25 percent, increasing from Rs. 226 to Rs. 283 in the interbank market and 21 percent from Rs. 236 to Rs. 285 in the open market. When invested in a 1-year term deposit at the beginning of the year, this amount would have resulted in a 29 percent gain at the interbank dollar and 25 percent at the open market, assuming a 4 percent return on USD deposits.

Likewise, holders of the Naya Pakistan US$ Certificate under the Roshan Digital Account (RDA) reaped a 33 percent gain in PKR terms due to the depreciating value of the Pakistani Rupee.

Gold, which has consistently provided above-average returns in recent years, continued its positive trend. In 2023, it saw an increase from Rs. 157,836/10 grams to Rs. 186,900/10 grams, yielding a profit of 18 percent. In the international market, it rose from US$ 1,826/ounce on December 30, 2022, to US$ 2,065/ounce on December 22, 2023.

Government T-Bills, amid a tightening monetary policy that led to record-high interest rates, resulted in a 23 percent gain for investors in 2023. The report assumed investment in 3-month T-Bills, actively reinvested every three months.

With high rates prevailing, many investors shifted to fixed-income, low-risk avenues in 2023. The average bank saving rate remained at 17 percent, while the National Savings 3-year Special Saving Certificate (SSC) provided a gain of 13 percent. Local Asset Management Companies’ money market funds generated an average return of 20% in 2023.

Despite some investors staying cautious in the property market, real estate in Karachi, according to Zeeman.com, experienced an increase of 6-29 percent in 2023 for houses, residential, and commercial plots.