Pakistan Stock Market Surges as 11 More Companies Cross Billion-Dollar Threshold

The Pakistan Stock Exchange (PSX) has witnessed an exceptional rally recently, with the KSE-100 Index closing above 116,000 on Monday, December 16, 2024. This remarkable surge has been fueled by a range of factors, including a stabilized exchange rate, a seamless shift from a $3 billion Stand-By Arrangement (SBA) to a larger, extended facility with the International Monetary Fund (IMF), stronger earnings in major sectors, and a general optimism surrounding stocks following recent monetary easing.

The market has also been boosted by a lower-than-expected inflation rate in November,  recorded at 4.9 %, further raising expectations for a significant cut in the policy rate during the upcoming meeting of the Monetary Policy Committee (MPC). The KSE-100 index has increased by approximately 180% of its trade value since June 1^st, 2023 the index was 41,273.20, and on December 16^th, 2024 it closed at 116,169.

This represents the best comeback in the PSX’s 75-year history, with the market’s value tripling in a remarkably short period, showcasing its resilience. “This marks the best comeback in Pakistan stock market’s 75-year history, tripling in value and showcasing unmatched resilience,” said Topline Securities in a note earlier.

Considering this remarkable growth, Techjuice has compiled a list of companies listed on the PSX that have reached a market capitalization of $1 billion or more. By December 16th, 2024, eleven firms achieved this; however, Mari Petroleum is ahead of the pack with a $3.533 billion market capitalization.

Top-performing Companies:

1. Mari Petroleum Company Limited (MARI) ($3.53 billion)
   Operating Pakistan’s largest gas reservoir at the Mari Gas Field, Mari Petroleum has become one of the largest producers of natural gas in the country. For FY 2024, MARI’s PAT stood at Rs77.28 billion which was 38% higher than that of the previous year. It also declared an 800% bonus share issuance, which is a show of strength of its balance sheet.
2. Oil and Gas Development Company Limited (OGDC) ($3.45 billion)
   As Pakistan’s largest exploration and production (E&P) company, OGDC posted a PAT of Rs208.98bln for the year ended on September 30, 2023. Despite a slight decrease in its earnings as compared to the last year, OGDC plays an important role in the energy sector of Pakistan.
3. Pakistan Petroleum Limited (PPL) ($1.97 billion)
   PPL continues to be a major supplier of natural gas in the country. For the fiscal year 2023-24, PPL’s PAT increased by nearly 19%, reaching Rs115.48 billion, underlining its solid market performance.
4. Fauji Fertilizer Company (FFC) ($1.83 billion)
   FFC is one of Pakistan’s largest fertilizer producers PAT rose significantly to Rs22.59 billion in Q3 of 2024, up by 45% year-on-year.
5. United Bank Limited (UBL) ($1.52 billion)
   UBL, a leading commercial bank in Pakistan, reported a PAT of Rs18.32 billion for Q3 2024, with a robust dividend payout of 220%.
6. Meezan Bank Limited (MEBL) ($1.47 billion)
   Meezan Bank as the largest Islamic bank in the country reported a PAT of Rs26.36 billion for the third quarter of fiscal year 2024 from Rs26.17 billion in the previous year.
7. Colgate-Palmolive (Pakistan) Limited (COLG) ($1.35 billion)
   Renowned for its personal care and detergent products, Colgate-Palmolive Pakistan’s market capitalization stood at $1.35 billion, continuing to show a strong market presence.
8. Lucky Cement (LUCK) ($1.32 billion)
   Lucky Cement as one of the major concrete manufacturers and suppliers reported a 21% growth in PAT – Rs72.34 billion in the year 2024 due to higher demand and excellent cost environment.
9. Pakistan Tobacco Company Limited (PAKT)(1.21 billion)
   A leading cigarette manufacturer, PAKT is part of the British American Tobacco group. Its market value was $1.21 billion with a stock price of Rs1,352.44 on December 16, 2024.
10. Nestlé Pakistan Limited (NESTLE) ($1.21 billion)
    Nestlé Pakistan, a key player in the country’s food and beverage sector, saw a decline in its PAT by 22%, reporting Rs12.3 billion for the nine-month period ending September 30, 2024.
11. MCB Bank Limited (MCB) ($1.12 billion)
    MCB, another top commercial bank, reported a PAT of Rs18.13 billion for Q3 2024, although its earnings showed a slight decline from the previous year.

These companies not only represent some of the largest corporations on the PSX but also highlight the continued growth of Pakistan’s economy and stock market. With the KSE-100 Index reaching historic heights, investor confidence in the market remains strong, buoyed by positive financial results and a favorable macroeconomic environment.