KSE-100 Index secured 51% profit in 2023

The profitability of KSE-100 Index grew 51% in 2023 to over Rs1.5 trillion on a year-on-year basis compared to just 9.4% in 2022.

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 growth in profitability during the period [2023] was attributable to an enormous surge of 82%, 60%, 55% and 47% YoY growth in Banks, E&Ps, Power and Fertilizers,” Arif Habib Limited stated.

Arif Habib Limited reported that the outstanding growth in overall profitability during the year was attributable to an enormous surge of 82% in banks, 60% in oil and gas exploration companies, 55% in the power sector, and 47% in the fertiliser manufacturing sector.

Key takeaways 

• benchmark policy rate (interest rate) jumped from 7% in September 2021 to record high of 22% in June 2023
• Pakistani rupee depreciated almost 20% in 2023, closing the year near Rs282/US dollar
• power sector’s net profit climbed up by 55% YoY to PKR 77 billion
• fertiliser sector grew 47% YoY to Rs94 billion
• cement 38% , chemical 34%, auto assembler 72%, refinery 8%, engineering (steel) 186% , food and personal care secured 6%  growth
• top performers retain 83.4% of the market capitalization