KARACHI: The Pakistan Stock Exchange (PSX) started the new year with a record-breaking rally. The KSE-100 Index closed above the 117,000 mark after gaining nearly 1,900-point surge on Wednesday.
The KSE-100 Index gained 1,881.18 points, closing at 117,008.08, marking a 1.63% increase. The index hit an intra-day high of 117,341.03, supported by strong local buying activity.
Major sectors, including automobiles, cement, commercial banks, fertiliser, oil and gas exploration, power generation, and pharmaceuticals, recorded gains. Index-heavy stocks like HUBCO, PSO, MARI, OGDC, ENGRO, MCB, and MEBL traded in the green.
Strong Institutional Buying
Topline Securities reported bullish momentum, driven by local institutional investors. Expectations of a policy rate cut in the upcoming Monetary Policy Committee meeting further fuelled investor confidence.
Pakistan’s inflation dropped to 4.1% year-on-year in December 2024, down from 4.9% in November. Month-on-month inflation increased by only 0.1%, compared to 0.5% in the previous month.
Uraan Pakistan Economic Plan
Prime Minister Shehbaz Sharif launched the ‘Uraan Pakistan’ economic plan on Tuesday. The five-year plan aims to achieve sustainable growth and further bolster economic activity.
The PSX closed 2024 with an 84.34% annual gain, becoming the second-best-performing market globally. Over the past 18 months, it gained 178%, marking the strongest performance in Pakistan’s history.
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Despite the rally, stocks remain undervalued. “Pakistan stocks are trading at a forward P/E ratio of 6.3x, indicating significant growth potential,” said Muhammad Sohail, CEO of Topline Securities.
Trading volume on the all-share index fell to 956.27 million from 1,236.87 million on Tuesday. However, the value of traded shares rose to Rs46.44 billion from Rs44.22 billion.
Cnergyico PK led trading volumes with 71 million shares. It was followed by Pak Int. Bulk with 62.83 million shares and B.O. Punjab with 45.41 million shares.
Out of 462 companies traded, 258 registered gains, 161 recorded losses, while 43 remained unchanged.
Global Market Trends
Indian markets opened 2025 on a muted note. The Nifty 50 dropped 0.11% to 23,617.75 points, while the BSE Sensex fell 0.09% to 78,057.81.
Asian markets also remained subdued as elevated U.S. Treasury yields weighed on emerging economies. The MSCI Asia ex-Japan index declined by 0.1%.
The PSX’s strong start to 2025 highlights investor confidence, signaling positive trends for the year ahead.
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