The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) recorded an impressive growth of 84% during the calendar year 2024 (CY24), gaining 52,676 points. This remarkable performance has positioned the PSX as one of the top-performing markets globally.
According to a report by Topline Securities, the growth was primarily driven by three key sectors: Banks, Fertilizers, and Exploration & Production (E&P). Banks contributed the most, adding 13,847 points to the index, followed by Fertilizers with 11,169 points and E&P with 10,012 points. Together, these sectors accounted for 35,028 points, making up 66% of the total growth.
Top Contributors
Among individual companies, Fauji Fertilizer Company (FFC) emerged as the top contributor, adding 6,086 points to the index. Mari Petroleum (MARI) followed with 3,977 points, United Bank Limited (UBL) added 3,957 points, and Oil and Gas Development Company (OGDC) contributed 2,613 points.
Market Capitalization and Challenges
The PSX’s market capitalization also saw a significant increase of 63%, reaching $52 billion by the end of 2024. However, this figure remains well below the 2017 peak of $100 billion. The decline in market capitalization over the years has been attributed to factors such as rupee devaluation, large dividend payouts, and a lack of new listings.
The market cap-to-GDP ratio of Pakistan improved to 12% in 2024, up from 9% in 2023. Despite this improvement, it remains below the 10-year average of 16%, reflecting the challenges faced by the market.
The strong performance of the KSE-100 index has earned the PSX recognition as the second-best performing stock market in the world for 2024, highlighting its resilience and potential for growth despite economic challenges.
