Karachi: The MCB Pakistan Stock Market Fund reported a return of 91.15% for the fiscal year ending June 30, 2024, outperforming its benchmark, the KSE-100 Index, which registered a return of 89.24% during the same period. The fund’s strong performance was driven by a robust rally in Pakistan’s equity market, underpinned by macroeconomic recovery and the country’s entry into a new IMF program.

According to information available from the Pakistan Stock Exchange (PSX), the net asset value (NAV) per unit of the fund stood at PKR 150.94 as of June 30, 2024, up from PKR 84.27 per unit at the end of the previous fiscal year. The fund's net assets increased to PKR 7,216 million from PKR 4,821 million, marking a growth of 49.68%.

The KSE-100 Index surged by 89.2%, closing at an all-time high of 78,445 points, making Pakistan the best-performing stock market globally with a USD return of 94.4%. The market's bullish momentum was supported by Pakistan's improved economic indicators, such as narrowing the current account deficit, the stabilization of the exchange rate, and a reduction in inflationary pressures. Additionally, the successful conclusion of IMF reviews under the Stand-by Arrangement (SBA) provided further confidence to investors.

Foreign investors, insurance companies, and corporates were net buyers during the year, with inflows amounting to USD 141 million, USD 126 million, and USD 36 million, respectively. The banking, fertilizer, and exploration and production sectors were the top contributors to the market’s gains, driven by strong profitability and structural reforms in their respective industries.

Looking ahead, the fund expects Pakistan's GDP to grow by 3.5% in FY2025, supported by stable macroeconomic conditions and continued reforms under the IMF program. The stock market is also expected to remain robust, with favorable conditions for equity investors, including easing inflation and interest rate cuts.