Pakistan Stock Exchange Hits Record High Despite Intra-day Pullback
The Pakistan Stock Exchange (PSX) started the trading week on a high note, soaring to a new all-time high of 118,735.09 points during intra-day trading. However, the market faced a slight setback as the KSE-100 index dropped to 116,300.17 points before settling at 116,745.03 points by noon, reflecting a 0.76% decrease.
Trading activity remained robust, with 134.7 million shares exchanged, totaling approximately PKR 9.74 billion in turnover. Despite the pullback, the market showed resilience after closing at 117,586.98 points in the previous session.
### Strong Start to the Week
The PSX witnessed a bullish trend earlier in the week, with the KSE-100 index reaching a record high of 117,587 points, representing a 5.6% week-on-week gain. This positive momentum was fueled by improved investor sentiment driven by favorable macroeconomic indicators, including a significant drop in inflation to 4.1% in December 2024.
### Sector Performance and Economic Indicators
The market rally was supported by strong performances from key sectors such as banks, fertilizers, and exploration & production companies. Despite concerns about the rising trade deficit and tax shortfall, investor confidence was boosted by the announcement of a new five-year economic plan, “Uraan Pakistan”, aimed at fostering sustainable economic growth.
### Analysts’ Projections and Market Volatility
Analysts foresee continued growth in 2025, with expectations of the KSE-100 index hitting 160,000 points if political and economic reforms are implemented effectively. Throughout the week, the market experienced volatility, with notable gains on Monday and Wednesday, ultimately closing with a 6,236 point increase.
### Sector Contributions and Market Outlook
Key sectors such as banks, fertilizers, and exploration & production (E&P) played a significant role in driving the market’s bullish trend. Inflation data, trade balance, and government initiatives were also instrumental in supporting market performance. As the PSX emerged as the best-performing market globally in terms of US dollar returns, analysts remain optimistic about continued market growth, emphasizing the importance of economic reforms and political stability for sustained progress.
