The year 2024 will be remembered as a landmark period for the Pakistan Stock Exchange (PSX) as the market experienced unprecedented growth, achieving milestones that were previously considered unattainable.

For the first time in history, the PSX crossed the 100,000-point mark, registering a staggering 78% return for investors. The KSE-100 Index, which stood at 62,451 points at the beginning of the year, surged past 117,000 points by year-end, marking a record-breaking increase of 50,000 points within a single year.

The market capitalization also witnessed a significant boost, growing by Rs. 5 trillion to exceed Rs. 14 trillion. In dollar terms, the PSX became a $50 billion market, solidifying its position as a key player in the region.

Turning point in PSX history

Despite past challenges, 2024 saw a dramatic turnaround. Muzammil Aslam, Finance Minister of Khyber Pakhtunkhwa, described the year as a “runway for takeoff” for the stock market, emphasizing that reforms and investor confidence played pivotal roles in this transformation.

Stock analyst Shehryar Butt noted that the PSX outperformed other investment avenues, offering a 75% return compared to 24% for gold and an average of 17% for national savings schemes. Investments in dollars, however, showed a negative return of 1%, further highlighting the stock market’s supremacy.

Foreign outflows and resilience

Interestingly, this historic growth occurred despite foreign investors pulling out $120 million from the market. For the first time, local investor activity was strong enough to sustain the market’s momentum, demonstrating resilience against external shocks.The unprecedented growth also sparked concerns of overvaluation, leading to volatile sessions in December. The market set historic records of 4,700 and 4,800 points in single-day gains during two sessions, raising eyebrows among regulators.

Abdul Rehman Warraich, Commissioner of the Securities and Exchange Commission of Pakistan (SECP), assured the public that the regulatory body remains vigilant to ensure transparency and market stability.

New listings and milestones

In 2024, seven new companies were listed on the PSX, raising Rs. 8.5 billion through initial public offerings (IPOs). However, the year also saw Pak Suzuki Motors delisting its shares by buying them back from the market.

Ahmed Chinoy, Director of the Pakistan Stock Exchange, expressed optimism for 2025, noting that the market’s robust performance encouraged over 75,000 individuals to open trading accounts last year.