PSX’s top firms hit record profit

The net profit earned by the top 100 performing companies listed on the Pakistan Stock Exchange (PSX) surged 51%, reaching a new record high of over Rs1.5 trillion in the year ended December 2023.

The major causes of depreciation in the domestic economy, namely high inflation rates, high interest rates, and rupee depreciation, provided a strong basis for different sectors to maintain a record high earning spree for another successive year. Among those making significant contributions to the overall profitability were banks, oil and gas exploration companies, and the power and fertiliser manufacturing sectors.

In a report titled ‘KSE-100 Index Profitability – CY23: Another year of record profitability, surpassing Rs1.5 trillion’, Arif Habib Limited (AHL) said “Dividends of KSE-100 companies (paid to shareholders) increased by 42% year-on-year to Rs547 billion in calendar year 2023.”

The PSX benchmark KSE-100 Index – comprising the top 100 performing companies – registered a 14-year high growth of 55% in 2023, mostly in the second half (Jul-Dec). The index closed the year at 62,451 points on December 29, emerging as the best-performing bourse in the year globally.