PSX top firms see 25% profit rise

The top 100 performing companies listed on the Pakistan Stock Exchange (PSX) have reported a 25% increase in their net profit to Rs1.3 trillion in the first nine months of the current fiscal year 2023-24 compared to the same period last year. This surge in profit coincides with Pakistan’s stock market becoming the world’s best-performing market, according to Bloomberg data. The increase in profit is attributed to elevated inflation readings, record-high interest rates, and rupee devaluation recorded in the initial months of the fiscal year, which are typically considered obstacles to achieving sustainable economic growth. The banking sector has led the list of top earners due to higher interest income, while soaring car and tractor prices have also enabled automobile companies to return to profitability. However, Topline Research reported a 4% slowdown in earnings in the third quarter (January-March) of FY24, breaking the cycle of astonishing profit growth seen in the past six quarters on a year-on-year basis.