Pakistani banks achieve some of the highest stock
returns in Asia Pacific region
Pakistani banks have outshone their Asia-Pacific
counterparts by achieving some of the highest stock returns in the final
quarter of 2023, fueled by a remarkable rally on the Pakistan Stock Exchange
(PSX) that propelled the local benchmark index to unprecedented levels, as
reported by S&P Global Market Intelligence.
Bank AL Habib Ltd. claimed the top spot in the quarterly
ranking of the 15 best-performing bank stocks in the Asia-Pacific region,
featured on S&P Global Market Intelligence for Q4 2023. Among the 11
Pakistani banks on the list, Bank Al Habib recorded the highest total returns,
reaching 89.96% for the quarter. Overall, Pakistani banks secured four out of
the top five positions in the ranking.
Pakistani
banks witness record Rs163 billion profit in third quarter of 2023
Pakistan's Askari Bank Ltd. secured the second position with
total stock returns of 59.48%, followed by Habib Metropolitan Bank Ltd. and
Faysal Bank Ltd., with returns of 51.56% and 48.85%, respectively. Indonesia’s
PT Bank Jago Tbk claimed the fifth position with total returns of 43.56% in the
October-to-December quarter.
According to Awais Ashraf, Director at Akseer Research, the
ongoing rally in Pakistan's stocks is expected to persist due to anticipated
monetary easing, a stable currency, and improved governance post-elections.
Ashraf emphasized that key sectors listed on the PSX, such as energy firms
engaged in exploration and production and banks, are poised to benefit
significantly from government restrictions imposed by the International
Monetary Fund (IMF) as part of a bailout package.
MCB
Bank records historic 150% profit growth in 1HCY23
The PSX emerged as one of the top-performing bourses in the
region in Q4, following the staff-level agreement reached with Pakistan by the
IMF in November 2023 on the first review of a $3 billion stand-by arrangement.
Pending approval from the IMF's executive board, the review provided the
Pakistani government access to approximately $700 million in funding.
The stock rally also bolstered investor confidence amid the
government's economic reform initiatives as part of the IMF loan program,
contributing to a reduction in economic uncertainties. The PSX's benchmark
index, the KSE 100, witnessed a surge of over 35% in the fourth quarter of
2023, closing at 62,451.04.
Soneri
Bank Limited shows remarkable earnings in financial results
Pakistan's economy showcased signs of improvement, reflected
in the latest gross domestic product figures, with a 2.13% growth in the
July-September 2023 quarter, a significant rebound from a 2.7% contraction in
the previous quarter, according to estimates by the Pakistan Bureau of
Statistics. The IMF projected a 2.5% GDP growth for Pakistan in 2024 following
an expected 0.5% contraction in 2023.
Apart from Bank AL Habib, other Pakistani banks featured in
the ranking include Meezan Bank Ltd., MCB Bank Ltd., National Bank of Pakistan,
United Bank Ltd., Standard Chartered Bank (Pakistan) Ltd., Bank Alfalah Ltd.,
and Habib Bank Ltd., along with India-based The Karur Vysya Bank Ltd. and CSB
Bank Ltd.
Askari
Bank’s profit increases 45% to Rs. 14 billion
In contrast, Chinese banks dominated the list of 15
worst-performing Asia-Pacific bank stocks by total returns in the most recent
quarter, with eight out of the 15 slots. The remaining positions were occupied
by banks from India, Australia, Vietnam, New Zealand, Japan, and Indonesia.
Notably, Shengjing Bank Co. Ltd. experienced the most significant decline, with
a 85.66% drop, followed by Jilin Jiutai Rural Commercial Bank Corporation Ltd.
and Bank of Gansu Co. Ltd. with declines of 51.83% and 39.66%, respectively,
according to data from Market Intelligence. The decline in Chinese banks'
stocks was in line with the overall performance of local stock exchanges, such
as the Shanghai Stock Exchange's SSE Composite Index, which fell over 4% during
the quarter.
Source: Pro Pakistani