Karachi, The Karachi Stock Exchange 100 Index (KSE100) has reached an all-time high of 72,743, surging 16% in 2024 and adding over 10,000 points. The index's strong performance is attributed to multiple factors, including dividends, earnings growth, and re-rating of price-to-earnings (P/E) ratios.

According to JS Global, the 10,292-point gain so far in the year can be broken down into three main components:

- Dividends contributed 2,517 points

- Earnings growth added 2,955 points

- Re-rating, with the P/E ratio increasing from 3.3x to 3.8x, accounted for 4,819 points

The firm reiterates its prediction of the KSE100 reaching 100,000 points by the end of the calendar year 2024, indicating a projected return of 60%, with 40% more gains expected from current levels. This optimistic outlook is supported by a 14% growth in profit after tax (PAT) and a 13% dividend yield.

The remaining growth to achieve the 100,000 mark is anticipated to come from a further re-rating of the P/E ratio to 4.7x, which remains below its long-term average. This re-rating, coupled with the steady earnings and dividend yield, underpins the bullish forecast for the index.