European stocks rise slightly as 2024 trading ends
- The KSE-100 index closed 2024 at 115,127 points, seeing a minor decline on the last trading day due to profit-taking.
- Key sectors contributing to the index's growth included banks, fertilisers, and exploration & production, accounting for 66% of the total gains.
- Overall, the Pakistan stock market demonstrated exceptional growth in 2024, establishing itself as one of the top-performing markets globally.
In 2024, the Pakistan Stock Exchange (PSX) witnessed a remarkable rally, with the KSE-100 index closing the year at 115,127 points despite a minor dip on the last trading day. The index's growth of 52,676 points positioned it as the second-best performing market globally in US dollar terms, trailing only behind Argentina. The driving forces behind this performance included strong contributions from various sectors, particularly banks, fertilisers, and exploration and production. Collectively, these sectors represented a staggering 66% of the index's gains. Key performers included Fauji Fertiliser Company, which contributed 6,086 points, followed by Mari Petroleum, United Bank Limited, and Oil & Gas Development Company. Additionally, the year saw an unprecedented level of trading activity, with daily average trading volumes in the cash market surging by 76% to 569 million shares and average traded value skyrocketing by 122% to Rs22 billion, marking the highest levels since 2007. The futures market also experienced significant growth, with daily volumes increasing by 68% to 184 million shares. Several factors contributed to this bullish trend, including falling inflation rates, declining yields on fixed-income instruments, and aggressive monetary easing by the State Bank of Pakistan, which lowered rates by 900 basis points throughout the year. Additionally, the political stability provided by the new International Monetary Fund (IMF) programme bolstered investor confidence, leading to a surge in market capitalisation by 63%, reaching $52 billion. The PSX also welcomed seven initial public offerings (IPOs), raising Rs8.4 billion, the most substantial amount since 2021. Though the bond market was active with the listing of Sharia-compliant bonds worth Rs2 trillion, secondary market activity remained thin. Despite challenges such as profit-taking on New Year's Eve, the overall performance of the KSE-100 in 2024 showcases the resilience and potential of the Pakistan stock market in a volatile economic landscape.