Karachi, January 1, 2025 – The Pakistan Stock Exchange (PSX) rang in the New Year with a historic milestone as the benchmark KSE-100 index surged to an all-time high of 117,008 points.
This remarkable achievement underscores renewed investor confidence and strong market momentum heading into 2025.
The index gained an impressive 1,881 points, or 1.63%, from the previous day’s close of 115,127 points. Stock market analysts noted that the bullish trend persisted throughout the trading session, with the benchmark index touching an intra-day high of 117,341.03 before settling at 117,008 points by the close.
Buying activity was robust across multiple sectors, including automobiles, cement, commercial banks, fertilizers, oil and gas exploration companies, oil marketing companies (OMCs), power generation, and pharmaceuticals. Index-heavy stocks such as HUBCO, PSO, MARI, OGDC, ENGRO, MCB, and MEBL contributed significantly to the rally, trading firmly in the green.
Analysts attribute the surge to heightened expectations of a policy rate cut in the upcoming Monetary Policy Committee (MPC) meeting scheduled later this month. Such a move would further reduce borrowing costs and stimulate economic activity, driving investor optimism.
Adding to the positive sentiment, Prime Minister Shehbaz Sharif on Tuesday unveiled ‘Uraan Pakistan,’ a comprehensive five-year national economic plan. The initiative aims to place Pakistan on a trajectory of sustainable economic growth through strategic reforms and investments.
The PSX closed the final trading session of 2024 nearly flat, with the benchmark index ending at 115,126.90 points, down by 132.09 points or 0.11%. However, the market’s stellar performance in 2024 marked a remarkable turnaround. Stocks surged by 84.34% during the year, making it the second-best-performing market globally, according to analysts.
Over the past 18 months, the PSX has emerged as the top-performing stock market worldwide, with a staggering 178% gain. This extraordinary performance represents the strongest rally in Pakistan’s 77-year history within such a short period.
“Despite this record-breaking rally, Pakistan stocks are still trading at an average forward P/E ratio of 6.3x, highlighting significant room for growth,” said Muhammad Sohail, a leading analyst and CEO of Topline Securities.
As 2025 begins, the PSX’s momentum reflects the market’s resilience and the broader economic recovery, setting an optimistic tone for the year ahead.