Pakistan’s technology stocks up by 500% in one year: KASBAbdul Gh Lone 25 March 2021 0 COMMENTS
Technology companies listed on the Pakistan Stock Exchange rallied 506% in one year, outperforming the benchmark KSE-100 Index that rose 48% during the same period and becoming the best-performing sector of 2020, KASB Securities’ research wing said on Wednesday.
“We think the rally in technology stocks will continue in 2021,” the Karachi-based brokerage said, announcing the launch of its own technology index.
The KASB Technology Index will track the share prices of five technology companies; Systems, TRG, Netsol, Avanceon, and TPL Trakker having a respective index weight of 34%, 43%, 11%, 11%, and 1%.
KASB Tech Index’s current level is 404.82 points, up by 42% from three months ago. It says it will track and publish the index on an everyday basis in its morning newsletter and weekly blog. “We believe that it will help establish the technology sector as an asset class, like it is becoming globally.”
At the moment, the Pakistan Stock Exchange’s data disclosure clubs the tech sector with media and telecommunications, KASB said. The total market cap (market value of all outstanding shares) of these five technology companies is $1.19 billion or 2.3% of the PSX’s total market cap.
“We expect that there will be more IPOs of technology companies this year and the sector will continue to gain share, just like it has happened in most other markets.” We suspect that most of the buying interest has come from individual investors and global funds, but now domestic institutional investors are also starting to pay attention. There have been new stock initiations by the sell-side. However, domestic funds are still underweight in the sector and we think this will change in 2021.