KARACHI: According to a research paper published on Tuesday by Topline Securities, gold would do significantly better than all other major investment avenues in 2022.
The next best-performing asset in the previous year was the US dollar, which was followed by one-year (dollar-based) Naya Pakistan Certificates.
In 2022, the predicted average inflation rate was roughly 20 percent, yet all three asset classes offered returns that were higher.
Gold experienced a 41 percent increase in value as its price per 10 grams increased from Rs108,200 to Rs152,700. In 2021, the rate went hiked by 11%.
Gold has increased in value on the local bullion market in tandem with the rising black market dollar rate. According to the statement, the precious metal is currently primarily priced at the parity found on the illicit market rather than the official rate, which is 10% less. On the worldwide market, gold, however, remained “more or less constant” in 2022.
Additionally, holders of Naya Pakistan Certificates, a Roshan Digital Accounts (RDAs) program, saw a 36 percent increase in rupee value. That was primarily due to the national currency losing value.
Similar to this, those who kept their dollar bills in 2022 saw a gain of 28%. At the end of 2021, the official bank rate for a dollar was Rs177; as of present, it is Rs226.
The brokerage company added that due to rising interest rates, many investors shifted their capital to fixed-income securities in 2022. In Pakistan, the policy rate jumped from 9.75 to 16 percent in the previous year.
The average gain on a three-month Treasury bill therefore stayed at 14 percent. Similar to that, local money market funds produced an average return of 14 percent in 2022.
In 2022, the average interest rate on bank deposits was 11 percent per year, excluding current accounts and government-issued Special Savings Certificates.
In 2022, macroeconomic concerns had a negative impact on Pakistanis’ favoured investment sector, the real estate market. According to the report, indicators that track the costs of homes, lots, and other residential property increased 12–14% in 2022.
Investor interest in stocks and bonds decreased as a result of Pakistan’s poor external account status, rising interest rates, and political unpredictability.
Due to an increase in the policy rate, the price of government bonds decreased. The benchmark Pakistan Investment Bond with a 10-year maturity earned a 2-percent negative return.
The KSE-100 benchmark index fell by 10% in 2022. The stock market and equity-based mutual funds outperformed all other major asset classes.