Karachi, November 28, 2024 – The Pakistan Stock Exchange (PSX) hit a historic milestone, surpassing 100,000 points at the start of trading on Thursday.
Mohammad Sohail, CEO of Topline Securities, expressed his excitement, stating, “PSX at 100,000 marks an extraordinary 150% gain, rising from 40,000 to 100,000 points in just 17 months. This achievement reflects growing investor confidence driven by a new IMF loan and disciplined fiscal and monetary policies. Additionally, a faster-than-expected drop in inflation and interest rates has injected liquidity into the stock market.”
Despite this impressive rally, Pakistan’s market trades at a price-to-earnings (PE) ratio of 5x, below its historical average of 7x. Sohail highlighted the market’s incredible journey, growing from less than 1,000 points in the late 1990s to 100,000 points today — a 100-fold increase over 25 years of fluctuating fortunes, including bull runs, bear phases, optimism, and challenges. These returns underscore the market’s resilience and long-term potential, he added.
This milestone follows a record-breaking recovery in the PSX a day earlier. On Wednesday, the KSE-100 Index surged by 4,695 points to close at 99,269 — a historic 4.96% single-day gain, signaling a powerful rebound after significant losses.
On Tuesday, political uncertainty due to protests in Islamabad caused the market to suffer its largest single-day drop, with the KSE-100 Index plummeting 3,800 points. However, reports of restored stability in the capital prompted a dramatic recovery.
Topline Securities analysts praised the rebound, noting, “The bulls dominated as the KSE-100 Index climbed an intraday high of 4,975 points before closing at 99,269.” This resurgence not only erased Tuesday’s losses but also propelled the market to a new peak, showcasing its ability to recover from external shocks.
The recovery brought a substantial increase in market capitalization, adding Rs 526 billion — the second-largest single-day gain in PSX history — after losing Rs 480 billion a day earlier.
Wednesday’s rally was broad-based, with strong buying across sectors. The banking sector led the surge, followed by auto assemblers, oil and gas exploration, oil marketing companies (OMCs), and power generation firms. Top contributors to the KSE-100 Index included FFC, HBL, SYS, BAHL, and PPL, collectively adding 1,546 points to the index.
