Pakistan’s equity market emerged as the best-performing asset class in fiscal year 2025, significantly outpacing traditional investment avenues such as gold, T-Bills, and bank deposits. According to a detailed report by Arif Habib Limited (AHL), the KSE-100 Index posted an impressive return of over 55%, cementing stocks as the most rewarding option for investors during the period.
The report highlights that while gold delivered a notable 47.56% return, other conventional instruments lagged behind. Treasury Bills (T-Bills) stood at 12.68%, Defense Saving Certificates (DSC) at 12.61%, bank deposits at 12.60%, Pakistan Investment Bonds (PIBs) at 11.97%, and the USD/PKR exchange rate offered a modest 1.91% gain.
AHL attributed the remarkable rally in equities to several key factors, including aggressive monetary easing by the central bank, a surge in market liquidity, and a broader unlocking of value across critical sectors. The brokerage observed that these drivers helped propel investor confidence and encouraged participation across a wider base.
The KSE-100 Index ended FY25 at 124,379 points, jumping from 78,445 at the close of FY24. This translated into a 58.6% return in local currency terms and about 55.5% in US dollar terms. AHL noted that the index’s compound annual growth rate remained superior to all other asset classes across long-term benchmarks, from 5-year to 20-year holding periods, underlining equities as the most lucrative choice for investors with a patient horizon in Pakistan.
FY25 also set records for the Pakistan Stock Exchange in terms of participation, achieving the highest trading volumes ever recorded and the most significant traded value since FY21. This underpins the growing appeal of equities among both institutional and retail investors looking to capture upside in a recovering economic environment.
Technology, Banks, Cement, Power, and Refinery sectors dominated trading activity during the year, with average daily volumes of 101 million, 57 million, 54 million, 47 million, and 44 million shares respectively. On the individual stock front, WorldCall Telecom (WTL) led the pack with an average volume of 50.9 million shares, followed by K-Electric (KEL), Cnergyico (CNERGY), Bank of Punjab (BOP), and Kosmopolitan (KOSM).
In terms of traded value, the most active sectors were Exploration and Production (E&P), Cement, Oil and Gas Marketing Companies (OGMCs), Banks, and Automobile Assemblers. Key scrips driving high-value trades included PSO, OGDC, Mari Petroleum, Hub Power, and Pakistan Petroleum Limited.
The report also pointed to standout sector gains, with Leasing jumping 224%, Woollen at 196%, Investment Banks up 130%, OMCs rising 109%, and Fertilizer adding 106%. On the flip side, Automobile Parts, Vanaspati, Synthetics, and Engineering sectors faced declines ranging from 8% to 20%.
Notable stock performers for FY25 included PGLC, NBP, BNWM, Glaxo, and FFC, each delivering triple-digit returns, while laggards like MEHT, EPCL, MUGHAL, THALL, and UNITY posted double-digit losses.
Overall, the year underscored the resilience of Pakistan’s stock market and reinforced equities as a compelling long-term asset class, driven by supportive macro policies and renewed investor appetite. The performance serves as a benchmark for both seasoned and emerging investors evaluating opportunities in Pakistan’s evolving financial ecosystem.