PSX ends historic year with modest fall

KSE-100 index loses 418 points, driven down by profit-taking

KARACHI:

The Pakistan Stock Exchange (PSX) signed off a standout 2025 on a historic note, during which the benchmark KSE-100 index soared to unprecedented highs above the 174,000 mark.

On the last day, however, the market registered a modest correction, falling 418.47 points, or 0.24%, to settle at 174,054.32. Trading remained choppy as early optimism faded in the face of profit-taking. The volatile performance on Wednesday reflected the cautious stance of investors.

In intra-day trading, the index crossed the 175k barrier and hit the peak of 175,233. However, as the session progressed, the investors chose to lock in gains, prompting a gradual retreat from the day's highs. As a result, the index slipped to the intra-day low of 173,564.

The KSE-100 index emerged as the second-best performing frontier market in CY25, delivering a robust 51% return and closing the year at a record high, Arif Habib Limited (AHL) reported.

This performance extends its three-year streak of double-digit gains, following returns of 55% in CY23 and an exceptional 84% in CY24, with only Romania outperforming Pakistan among frontier markets. Over the past three years, the index has generated an average annual return of 64%, placing it among the top-performing equity markets globally. In dollar terms, cumulative returns reached 249%, a level unmatched by any other market over the three-year period, AHL added.

Echoing similar views, KTrade Securities stated that Pakistan was firmly within a multi-year bull cycle. "We set our Dec'26 index target at 216k+, implying a 26% upside from the current levels, underpinned by macro stabilisation, policy continuity and improving liquidity," it said.

KTrade noted that the PSX wrapped up 2025 with a stellar, record-shattering performance, as the KSE-100 surged from one all-time high to another, closing the year at 174,054. The rally was driven by a powerful mix of macroeconomic stabilisation, diplomatic breakthroughs, landmark defence agreements and a revitalised capital market environment.

The year also remained remarkable due to its strong IPO momentum and multiple corporate success stories. The most recent was KASB KTrade's migration from the GEM Board to the main board, a move that underscored the depth, maturity and credibility of Pakistan's equity market. In the final trading session of the year, the index faced selective profit-taking, with pressure observed in Lucky Cement, Fauji Fertiliser, NBP, DG Khan Cement, Cherat Cement and Fauji Cement, it said.

Overall trading volumes increased to 957.2 million shares compared with Tuesday's tally of 851 million. K-Electric was the volume leader with trading in 95.9 million shares, gaining Rs0.21 to close at Rs5.93. It was followed by PIA Holding Co with 61.8 million shares, rising Rs0.93 to close at Rs32.72 and Pakistan International Bulk Terminal with 47.7 million shares, adding Rs0.27 to close at Rs18.83. During the day, foreign investors sold shares worth Rs1.27b, the NCCPL reported.