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The Pakistan Stock Exchange (PSX) experienced a remarkable surge in 2024, with the benchmark KSE-100 index climbing by 84%, adding 52,676 points to reach a closing value of 78,445 points on June 30, 2024. This impressive growth was primarily driven by three key sectors:
- Banks: Contributed 13,847 points
- Fertilizers: Added 11,169 points
- Exploration and Production (E&P): Provided 10,012 points
Collectively, these sectors accounted for 35,028 points, representing 66% of the total index growth. Individual companies also played a significant role in this upward trajectory:
- Fauji Fertilizer Company (FFC): Contributed 6,086 points
- Mari Petroleum Company Limited (MARI): Added 3,977 points
- United Bank Limited (UBL): Provided 3,957 points
- Oil & Gas Development Company Limited (OGDC): Accounted for 2,613 points
By December 2024, the market capitalization of listed companies experienced a remarkable surge of 61%, hitting around $51 billion (Rs14.6 trillion).
Despite this growth, the market capitalization is still under its 2017 high of $100 billion. This decline can be linked to several factors, including the devaluation of the rupee and significant dividend payouts. Additionally, a scarcity of new listings has contributed to the market’s underperformance.
Furthermore, the Market Capitalization to GDP ratio reached 12% in 2024, an increase from 9% in 2023, although it remains below the 10-year average of 16%. In 2024, the PSX experienced a remarkable year, driven by notable contributions from the banking, fertilizer, and E&P sectors, resulting in impressive market gains.
