KARACHI: Pakistan’s equity market capped off another standout year as the benchmark KSE-100 Index delivered a robust 52 percent return in calendar year 2025, with one trading session still to go.
According to Topline Securities, previously, the KSE-100 Index posted a 84 percent surge in 2024, following a 55 percent gain in 2023, with the sustained rally emerging as one of the most powerful three-year bull runs in the market’s recent history.
This surge mirrors past multi-year rallies seen during 2002–07 and 2012–16, highlighting cycles of strong equity market performance driven by reforms, macro stability, and investor optimism, the report said.
Since its launch in 1991, the KSE-100, a total return index representing Pakistan’s top 100 listed companies has delivered a 21 percent average annual return (simple average) and a 15 percent CAGR (compounded annual growth rate) Out of the last 34 years, the market has posted gains in 23 years and declined in 11 years, reflecting long-term outperformance despite short-term volatility.
Benchmark KSE 100 Index jumped 52 percent in PKR (51 percent in USD) in 2025. While, market value (market capitalization) of listed companies at PSX also increased by 39 percent to reach Rs19.7 trillion or USD 70 billion, Topline reported.
Vanaspati & Allied Industries, Inv Banks/Inv Cos/Securities Cos. and Wollen were the best performing sectors in 2025 as their market cap increased by 120 percent, 97 percent, and 88 percent respectively. On the other hand, Synthetic & Rayon, and Leather & Tanneries sectors remained the worst performing sectors posting decline of 12 percent, and 3 percent, respectively in 2025.
However, in large cap basis, Banks, Cement, and Fertilizers remains top performing whose market capitalization rose by 85 percent, 81 percent, and 57 percent, respectively. Banking sector remains in limelight due to valuation catchup, Net Interest Income (NII) growth alongside capital gains by certain banks.
Copyright Business Recorder, 2025