The Pakistan Stock Exchange (PSX) continued its remarkable bull run on Wednesday, with the benchmark KSE-100 Index surpassing the 130,000 mark for the first time during intra-day trading—a major psychological milestone for the market.
By 1:00 PM local time, the KSE-100 stood at 130,122.77, gaining 1,923.35 points or 1.5% from the previous close of 128,199.42. The index hit an intraday high of 130,137.57 and a low of 128,616.11. Trading activity remained robust, with over 220 million shares changing hands and a total turnover of PKR 19.21 billion.
This performance builds on Tuesday’s rally, when the index climbed 2,300.18 points (1.83%) to close at a then-record 127,927.49. That followed Monday’s strong close at 125,627.31, marking three consecutive sessions of substantial gains.
Asia’s Top-Performing Market in FY25
With a staggering 60% return in FY25, the PSX ended the fiscal year as Asia’s best-performing equity market, far outpacing regional peers. Market strength was underpinned by improving macroeconomic indicators, structural reforms, and a notable recovery in investor sentiment, despite lingering global and domestic uncertainties.
Analysts from JS Global and AKD Securities highlighted increased trading activity, sector-wide gains, and restored investor confidence as key catalysts. The rally was widely seen as a reflection of policy continuity and improving economic fundamentals.
According to market data, Pakistan’s FY25 equity performance surpassed China (16%), Vietnam and South Korea (10% each), and India (6%), while markets in the Philippines, Indonesia, Taiwan, Malaysia, and Thailand posted negative returns—Thailand being the weakest with a 16% decline.
Valuations Suggest Further Upside Potential
Despite the record-breaking rally, Pakistan’s equity market remains attractively valued. The KSE-100 trades at a price-to-earnings (P/E) ratio of just 6.3—well below regional benchmarks such as India (23.1), Taiwan (16.5), Malaysia (14.1), and China (13.4). This valuation gap presents significant upside for long-term investors seeking undervalued exposure to emerging markets.
Analysts credited the market’s momentum to a combination of aggressive monetary easing, prudent fiscal management, and a relatively stable external account. The KSE-100 appreciated by 60.1% in local currency and 57.1% in USD terms, driven largely by capital gains. The rupee depreciated 1.9% in FY25, following a 2.7% appreciation in the previous fiscal year.
Record Participation and Liquidity
Investor participation surged during the fiscal year, with average trading volumes increasing 43.6% year-on-year to a record 823 million shares. The value traded also soared 82.6% to PKR 38.1 billion, underscoring heightened interest in equities amid shifting asset preferences.
With macroeconomic indicators improving and valuations still low by regional standards, analysts see continued potential for the PSX to attract both domestic and foreign investors in the months ahead.
