KARACHI: Pakistan’s equity market has recorded its highest daily traded value in nearly two decades, with ready-market turnover surging to around Rs85 billion, reflecting strong investor confidence and heightened trading activity.
Market participants attribute the sharp rise in volumes to aggressive buying by local mutual funds, supported by a sustained shift of funds from fixed-income instruments into equities.
The ongoing asset reallocation has been driven by changing return dynamics, as declining yields on fixed-income products have reduced their relative attractiveness.
Since the start of 2026, equities have delivered strong returns, gaining 6.3 percent, during the first four trading sessions of the year, underscoring the strength of the current rally.
Meanwhile, for context, returns on fixed-income instruments have declined sharply over the past 18 months. Yields that stood at above 24 percent around mid-2024 have eased to nearly 9–10 percent at present, prompting investors to seek higher returns in the equity market.
Analysts believe that, in the current environment of falling interest rates and ample liquidity, equities have emerged as the preferred asset class, benefiting from improved risk appetite, sustained institutional participation and rising market valuations.
Copyright Business Recorder, 2026
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