KARACHI: As profit-taking in important sectors reduced gains from earlier in the day, the KSE-100 index ended Tuesday’s final trading session of 2024 at 115,127 points, down 0.11 percent (132 points).
Selling pressure was experienced by banks, fertilizers, and exploration and production equities. Fauji Fertilizer Company, MCB Bank, Bank Al Habib, Bank Alfalah, and Engro Corporation were the businesses that witnessed the worst fall, each losing 424 points.
Driven by stronger economic conditions and a stable political environment, the KSE-100 concluded 2024 with an astounding 84 percent gain, the best year return in 22 years, despite a modest decline on the final session of the year, according to brokerage house Topline Research.
According to Bloomberg data, the index gained 52,676 points in 2024, ranking second in the world’s markets in terms of US dollars, after Argentina.
Fertilizers (11,169 points), banks (13,847 points), and E&P (10,012 points) all contributed to the KSE-100’s outstanding performance. According to Arif Habib Limited, these industries combined contributed for 66 percent of the index’s gains.
Among the top achievers were Oil & Gas Development Company (2,613 points), Mari Petroleum (3,977 points), United Bank Limited (UBL) (3,957 points), and FFC (6,086 points).
In 2024, the PSX saw unheard-of trade activity. The cash market’s daily average trading volumes increased by 76 percent to 569 million shares, and the average traded value increased by 122 percent to Rs22 billion, the highest level since 2007.
Significant increase was also observed in the futures market, with daily volumes increasing by 68 percent to 184 million shares and traded values increasing by 80 percent to Rs8 billion.
Falling inflation, falling fixed-income instrument yields, aggressive monetary easing of 900 basis points by the State Bank of Pakistan, and a stable rupee all supported the gain.
Investor confidence was increased by these developments as well as political stability brought forth by the new IMF program.
Growth in market capitalization and IPOs
Although it is still below the 2017 record of $100 billion, PSX’s market capitalization increased by 63 percent to $52 billion in 2024. The most money raised since 2021, Rs8.4 billion, came from seven initial public offerings (IPOs), including two on the Growth Enterprise Market (GEM) Board.
During the year, Rs2 trillion worth of government sharia-compliant bonds, or sukuk, were also listed. Nonetheless, sukuk secondary market transactions remained modest, averaging Rs163 million daily.
Taking advantage of decreasing interest rates, local insurance companies and mutual funds made significant purchases in 2024.
