Banks, fertilizers, and E&P sectors lead PSX to world’s 2nd best performing market

Pakistan's stock market saw a remarkable surge of 84% in 2024. The robust performance was driven by significant gains in the banking, fertilizer, and exploration and production (E&P) sectors.

Banks led the charge, contributing 13,847 points to the index, followed by fertilizers with 11,169 points, and E&P adding 10,012 points. These sectors collectively contributed 66% of the total growth in the index, adding up to 35,028 points.

Pharmaceuticals, jute, and transport also performed during the year, with their market capitalizations increasing by 198%, 182%, and 130%, respectively.

In contrast, the chemicals, modarabas, and textile weaving sectors underperformed, posting declines of 54%, 33%, and 2%.

Pharmaceuticals experienced robust growth due to improved financial results, a decline in raw material prices, stable currency, lower inflation, and deregulation of non-essential drugs.

Haleon Pakistan (HALEON) saw its market capitalization rise by 409%, followed by GlaxoSmithKline Pakistan (GLAXO) with a 385% increase, and Macter International (MACTER) with a 274% rise.

The jute sector also posted strong performance, led by Suhail Jute Mills (SUHJ), whose market capitalization increased by 329%.

The transport sector's performance was driven by Cordoba Logistics & Ventures (CLVL), which saw a 177% rise in market capitalization, and Pakistan National Shipping Corporation (PNSC), recording a 163% increase.

Sazgar Engineering (SAZEW) topped the KSE 100 Index, with its stock gaining 552% in 2024, primarily due to an increase in volumetric sales.

Other notable gainers included Air Link Communication (AIRLINK), which rose by 268% due to improved mobile sales and the anticipated launch of locally assembled TVs and laptops.

Fauji Fertilizer Company (FFC) increased by 246%, driven by expectations of strong earnings and strategic mergers and acquisitions.

Mari Petroleum Company (MARI) gained 220%, attributed to an 800% bonus share announcement and strategic investments.

Ali Asghar Textile Mills (AATM) was the standout performer of the market, with its stock gaining 2774% in 2024. The company's strategic shift from textile spinning to logistics and warehousing paid off significantly. Khalid Siraj Textile Mills (KSTM) also posted a substantial increase, rising by 1156% in 2024.

Thatta Cement Company (THCCL) and Dewan Automotive Engineering (DWAE) saw their share prices soar by 1027% and 1073%, respectively, driven by increased volumetric sales and strategic business shifts.