KSE-100 Ranking FY25 The Pakistan Stock Exchange (PSX) delivered one of the strongest performances globally during the fiscal year 2024–25 (FY25), placing its flagship KSE-100 Index among the top three stock markets worldwide. As per a report released by Arif Habib Limited (AHL), the index surged 55.5% in US dollar terms, making it the third-best performer across global equity markets.
Measured in Pakistani rupees, the index climbed 58.6%, moving from 78,445 to 124,379 points during the year. This rally enabled Pakistan to outperform several advanced and emerging economies.
Pakistan Trails Only Ghana and Slovenia
Pakistan secured the third spot globally, following Ghana and Slovenia. Ghana’s GGSECI Index topped the charts with a 140.7% return, while Slovenia’s SBITOP Index registered a 56.7% gain. Pakistan’s KSE-100 exceeded the returns of many global benchmarks, including:
- US Nasdaq: 14%
- Germany’s DAX: 46.9%
- Japan’s Nikkei: 12.8%
- India’s Sensex: 3.2%
Key Drivers Behind the Rally
According to AHL, multiple economic and policy developments fueled the rally. The State Bank of Pakistan’s interest rate cuts created favorable conditions for equity investment. Increased liquidity and gains in core sectors like banking, energy, and construction also added momentum.
Several positive macroeconomic signals further strengthened market sentiment:
- Renewed IMF negotiations
- Improved fiscal management
- A stable exchange rate
- Active involvement from local investors and institutions
These combined factors helped sustain investor confidence throughout the fiscal year.
Pakistan Stays Resilient Amid Regional Outflows
While other Asian economies witnessed steep foreign investment withdrawals, Pakistan managed to limit its capital outflow. AHL reported significant exits from:
- Taiwan: $28.7 billion
- South Korea: $23.5 billion
- India: $11.2 billion
- Vietnam, Thailand, Malaysia: multi-billion dollar outflows
In contrast, Pakistan’s net outflow stood at a modest $300 million, showcasing strong domestic participation that balanced external pressure.
KSE-100 Shines Despite Global Volatility
Global headwinds such as rising interest rates, a strong US dollar, and geopolitical instability prompted investors to shift focus toward safer markets. Yet, Pakistan bucked this trend, demonstrating resilience through policy clarity and investor trust.
This exceptional year for the KSE-100 Index not only reflects robust market performance but also highlights Pakistan’s potential to emerge as a key player in global capital markets.
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