PSX posts one of its strongest years on record

December 22, 2025 (MLN):  Pakistan’s stock market has entered a historic phase as the benchmark KSE-100 Index crossed the 171,500 level by mid-December 2025, a strong investor confidence, higher corporate profitability, and deepening capital market participation.

According to Khurram Schehzad on his X (formerly Twitter) account, the Pakistan Stock Exchange (PSX) has delivered exceptional returns in 2025, with the market gaining 47% in US dollar terms and 48% in Pakistani rupees from January to date.

One of the most notable developments has been the rapid expansion of the investor base.

Total equity investors have reached 450,000, with 120,000 new investors added between June 2024 and November 2025, which marks a 37% increase in just over a year.

Overall participation across public markets including equities, commodities, mutual funds, and fixed-income instruments has now exceeded one million investors, an unprecedented milestone for Pakistan’s capital markets.

Corporate earnings have also shown solid momentum. Listed companies’ profitability rose 14% YoY during the January–September 2025 period, while profits in the July–September quarter alone increased 9% YoY, underpinning the rally in stock prices.

The structural strength of the market is further reflected in the growing number of large-cap firms.

The number of billion-dollar market capitalization companies listed on PSX has climbed to over 18, compared to just three in 2022, a rapid value creation across key sectors.

Looking ahead, market depth is expected to improve further with a strong pipeline of new listings.

More than 16 initial public offerings (IPOs) are expected in 2026, potentially marking one of the most active periods for capital raising in PSX history.

Mutual funds now allocate 14% of their assets to equities, up from 7% previously, though still below the long-term average of 27%, which suggesting significant room for additional equity inflows.

This can be seen as signs of a maturing capital market, supported by improving macroeconomic stability, stronger corporate balance sheets, and increasing retail and institutional participation.

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