The Pakistan Stock Exchange (PSX) started the week on a high note, with the KSE-100 index reaching an all-time intra-day high of 118,735.09 points. However, the market couldn’t hold this momentum and saw a decline, with the index dropping as low as 116,300.17 points during the session.
By midday, the KSE-100 index had settled at 116,745.03 points, marking a drop of 0.76% or 896.05 points from the previous day. Despite this pullback, trading remained active, with 134.7 million shares exchanged, generating a turnover of PKR 9.74 billion.
The PSX had closed the previous session at 117,586.98 points. The slight loss in the current session came after a strong start to the week, reflecting mixed sentiments in the market.
Last week, the PSX showed exceptional performance, with the KSE-100 index achieving a record high of 117,587 points, translating to a 5.6% week-on-week gain. Investor confidence was boosted by favorable economic indicators, such as a sharp drop in inflation to 4.1% in December 2024, the lowest in over six years. Strong performances in banking, fertilizers, and exploration and production (E&P) sectors also played a significant role.
The trading volume averaged a 31% increase compared to the previous week, reaching 1,045 million shares daily. However, some concerns lingered over a growing trade deficit of $2.4 billion and a tax shortfall of Rs. 386 billion, which could pose challenges to the economy.
Adding to the optimism, the government’s recently launched five-year economic strategy, “Uraan Pakistan,” focused on sustainable growth and further boosted market sentiment. Analysts predict that if political and economic reforms remain stable, the KSE-100 index could reach an impressive 160,000 points in 2025.
Throughout the week, the market saw ups and downs, including a strong 3.5% gain on Monday and a significant jump of 1,881 points on Wednesday. On the last trading day, the market climbed past 117,500 points due to strong earnings projections and expectations of a policy rate cut by the State Bank of Pakistan (SBP).
The week ended with the PSX gaining 6,236 points overall, making it the best-performing stock market globally in terms of US dollar returns.
Sector contributions to this performance were noteworthy:
- Banking sector added 13,847 points.
- Fertilizer sector contributed 11,169 points.
- Exploration and Production (E&P) sector added 10,012 points.
Economic indicators such as reduced inflation, the trade balance, and government policies have fueled the bullish trend. Experts believe that with continued reforms and political stability, the PSX could maintain this growth trajectory, further solidifying its position as a top-performing market.
Despite some challenges, the PSX’s potential remains strong, making it a focal point for investors seeking opportunities in 2025.
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