PSX Vs. Bitcoin

PSX with bitcoin 1 978x652 1

This time last year, Bitcoin was trading at $9702, today it is priced at $32846. This is a 239% return over the year, which in layman terms would mean that anyone who invested a dollar in Bitcoin on the 8th of June 2020, would have had a 2.39 dollar return on their investment by the same date in 2021. This would mean that their Bitcoin investment would be valued at $3.39 on the 8th of June 2021. When, however, viewing the year on year returns of the companies trading in the Pakistan Stock Exchange, we see that 23 firms made annual returns greater than 239%, meaning a return greater than that earned by Bitcoin.

With Telecard Ltd, Ravi Textile Mills Ltd, and TRG Pakistan being amongst the highest performing stocks, earning 1373%, 689% and 544% respectively, twenty-one other stocks listed on the Pakistani Stock Exchange saw an annual return greater than that earned by the much sought after, Bitcoin. An investment in Telecard Ltd last year, which has been the best performing PSX stock of the year, would have yielded a 13x return, this in simple terms means that anyone investing $1 in Telecard Ltd in 2020, would have had an investment worth $14 in 2021. A 6.89x return on the stocks of Ravi Textile Mills, 5.4x return in TRG, and a 4.21x return on National Refinery Ltd stocks, all are indicators of what a decent portfolio in the PSX has to offer for those seeking to invest their money in the Pakistani market.

Mr Ali Farid, CEO KTrade, argues that while an investment in 23 PSX stocks offers a higher return than Bitcoin, it also brings in the advantage of investing in companies like Mitchell Farms or Ravi Textile Mills, whose real world products can be used by the investors themselves. These companies while also provide dividends to their investors, an investment in their stocks does not face the same regulation issues that are faced by Bitcoin.

In order to invest in PSX stocks you can download the KTrade application from the Google Playstore as well as the Apple Appstore, and get your account opened at KASB by visiting our website, where our investors can readily benefit from our Research.

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