The Pakistan Stock Exchange (PSX) began the new year on a high note as the benchmark KSE-100 Index soared by over 2,000 points during intra-day trading on Wednesday, reflecting investor optimism fuelled by further anticipated monetary easing.
By 3:05 pm, the KSE-100 Index reached 117,136.44, gaining 2,009 points or 1.75%. However at to the closing bell, the index had come down to 117,008.08 rising by 1881.18 points (1.63%). The rally was led by strong buying interest across key sectors such as automobiles, cement, commercial banks, fertiliser, oil and gas exploration companies, OMCs, power generation, and pharmaceuticals.
Index-heavy stocks, including HUBCO, SNGPL, MARI, OGDC, ENGRO, MCB, and MEBL, traded in the green, contributing significantly to the market’s performance.
Market sentiment was further buoyed by the launch of Prime Minister Shehbaz Sharif’s “Uraan Pakistan,” a five-year national economic plan aimed at sustainable growth.
The PSX had closed the final trading day of 2024 nearly flat, settling at 115,126.90, down by 132.09 points or 0.11%. However, the broader outlook remains positive as the market recorded an 84.34% gain in 2024, making it the second-best-performing stock market globally.
Over the past 18 months, the PSX achieved a record-breaking 178% gain, marking the strongest performance in Pakistan’s history over such a short period. Despite this, analysts see room for growth, with stocks trading at an average forward P/E ratio of 6.3x.
“Pakistan stocks still present significant growth potential despite their historic rally,” noted Muhammad Sohail, CEO of Topline Securities.
In contrast, major Asian markets, including India, were subdued on Wednesday, with analysts pointing to elevated U.S. Treasury yields as a dampening factor for emerging markets.
