Karachi, January 17, 2025 — The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) soared by 1,435 points on Friday, bolstered by reports of a significant current account (CA) surplus. This sharp rally reflects growing optimism in the market as Pakistan’s economic indicators improve.
The KSE-100 index closed at 115,272 points, rising from the previous day’s closing of 113,837 points. Earlier in the session, the index witnessed some selling pressure, hitting an intraday low of 113,572 points before recovering strongly. By the session’s end, the benchmark index had gained 1,435.34 points, representing a 1.26% increase.
The market’s rally coincides with Pakistan’s remarkable achievement of posting a $1.21 billion current account surplus during the first half of the fiscal year 2024-25 (July-December 2024), according to the State Bank of Pakistan (SBP). This marks a significant turnaround from the $1.40 billion deficit recorded during the same period of the previous fiscal year. In December 2024, the current account surplus stood at $582 million, slightly down from $684 million in November 2024. The surplus represents a positive shift in Pakistan’s external balance and economic resilience.
Throughout the day, the KSE-100 index saw active buying in key sectors such as automobile assemblers, cement, fertilizer, oil and gas exploration, OMCs, power generation, and refineries. Prominent index-heavy stocks, including NRL, PRL, HUBCO, PSO, SNGP, SSGC, MARI, OGDC, ENGRO, HBL, and UBL, traded in the green, contributing to the upward momentum.
“The market initially faced concerns over potential political uncertainties, especially with the potential release of Imran Khan from jail,” noted Intermarket Securities. “However, improved economic indicators and slower conversions at mutual funds helped stabilize sentiment. We expect the market to remain range-bound until new triggers emerge.”
This was the fifth consecutive month of a current account surplus, highlighting Pakistan’s improving fiscal performance. Additionally, Net Foreign Direct Investment (FDI) grew by 20% during the first half of FY25, reaching $1.329 billion. Pakistan’s Real Effective Exchange Rate (REER) rose to 103.7 in December 2024 from 103.02 in November 2024, further supporting investor confidence.
The KSE-100 index continues to reflect the impact of improving economic conditions, with analysts closely monitoring future developments to assess long-term trends.