KARACHI: Amongst the major asset classes widely followed by local investors and savers, gold, one-year US$ Naya Pakistan Certificate (NPC) and US dollar remained best performing assets in Pakistan in 2022, experts said.
These asset classes provided better returns compared to estimated average CPI inflation of 20 percent in outgoing calendar year 2022, they added.
Gold posted gain of 41 percent in 2022 rising from Rs 108,200/10 gm to Rs152,700 after gaining 11 percent in 2021, Topline Securities Research report said. In local Sarrafa/bullion market gold rallied in line with increase in USD rate in the black market, it added.
Currently, gold is valued at black market parity rather than official rate which is 10 percent lower. Although in the international market Gold remain more or less stable in 2022.
The report said that the holder of Naya Pakistan Certificate under Roshan Digital Account (RDA) also made 36 percent in PKR terms due to falling PKR value. Similarly, holders of cash USD made a gain of 28 percent in 2022 as official bank rate of USD rose from Rs 177 at end of 2021 to Rs 226 now.
It was observed that lot of investors transferred their capital to fixed income instruments in 2022 due to rising interest rates. Policy rate in Pakistan increased from 9.75 percent to 16 percent in 2022. Following this, 3-month T-Bill average gain was 14 percent in 2022. Similarly local money market funds also generated 14 percent average return in 2022.
“Return on bank deposits (excluding current account) and Special Saving Certificates issued by government of Pakistan was 11 percent on an average in 2022. Most famous and widely followed property sector was also affected in 2022 due to macroeconomic concerns. Indices tracking houses, plots and residential property were up 12-14 percent in 2022.”
“Pakistan’s weak external account situation, rising interest rates and political uncertainty led to lower interest in equities and bonds,” the report said.
Government bond prices fell due to rising policy rate. Benchmark 10-year PIB posted a negative return of 2 percent (inclusive of 8 percent coupon) in 2022. “Stock market along with equity funds under performed other major asset classes in 2022 with benchmark KSE-100 Index falling 10 percent.”
Copyright Business Recorder, 2022
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