KARACHI: The KSE-100 index closed its final trading session of 2024 at 115,127 points on Tuesday, down 0.11 per cent (132 points), as profit-taking in key sectors trimmed gains from earlier in the day.

Banks, fertilisers and exploration and productionstocks saw selling pre­s­sure, with companies like Fauji Fertiliser Company, MCB Bank, Bank Al Habib, Bank Alfalah and Engro Corporation leading the decline, losing 424 points collectively.

Despite the slight dip on the last session of the year, the KSE-100 ended 2024 with an unprecedented 84pc gain, the highest annual return in 22 years, driven by improved economic conditions and a stable political environment, the brokerage house Topline Research said.

The index added 52,676 points in 2024, making it the second-best performing market globally in US dollar terms, behind Argentina, according to Bloomberg data.

The KSE-100’s stellar performance was powered by contributions from banks (13,847 points), fertilisers (11,169 points), and E&P (10,012 points). These sectors collectively accounted for 66pc of the index’s gains, according to Arif Habib Limited.

Key performers included FFC, which added 6,086 points, Mari Petroleum (3,977 points), United Bank Limited (UBL) (3,957 points), and Oil & Gas Development Company (2,613 points).

The PSX unprecedented trading activity in 2024. Daily average trading volumes in the cash market surged 76pc to 569m shares, while average traded value jumped 122pc to Rs22bn — the highest since 2007.

The futures market also saw significant growth, with daily volumes rising 68pc to 184m shares and traded value up 80pc to Rs8bn.

The rally was underpinned by falling inflation, declining yields on fixed-income instruments, aggressive monetary easing of 900 basis points by the State Bank of Pakistan and a stable rupee.

These improvements, coupled with political stability under the new IMF programme, bolstered investor confidence.

Market capitalisation, IPOs see growth

PSX’s market capitalisation rose 63pc to $52bn in 2024, though it remains below the 2017 peak of $100bn. Seven initial public offerings (IPOs), including two on the Growth Enterprise Market (GEM) Board, raised Rs8.4bn — the highest since 2021.

Government Sharia-compliant bonds (sukuk) worth Rs2 trillion were also listed during the year. However, secondary market trading for sukuk remained thin, averaging Rs163m per day.

Local mutual funds and insurance companies were major buyers in 2024, taking advantage of lower interest rates.

Published in Dawn, January 1st, 2025