At 1:00 PM local time, the index was trading at 130,122.77, up 1,923.35 points, or 1.5%, from the previous close of 128,199.42.
The KSE-100 touched an intraday high of 130,137.57, while the session’s low stood at 128,616.11. Market volume reached over 220 million shares, with the total traded value at PKR 19.21 billion.
On Tuesday, the benchmark KSE-100 Index surged by 2,300.18 points, or 1.83%, to close at 127,927.49, setting a fresh all-time high. The index touched an intraday peak of 128,149.46, with the session’s low recorded at 126,113.27.
This sharp gain followed Monday’s close of 125,627.31 marking three consecutive sessions of upward momentum.
PSX tops Asian markets with 60% return
Moreover, Pakistan’s equity market closed FY25 as the top-performing market in Asia, delivering a 60% return and significantly outperforming all major regional peers. This strong performance was driven by macroeconomic stability, structural reforms, and improved investor sentiment, despite global and domestic challenges.
Read: Inflation falls sharply, undercuts tight policy
Analysts from JS Global and AKD Securities cited a robust recovery in confidence, high trading activity, and strong sectoral performance as key drivers.
Waqas Ghani Kukaswadia, Head of Research at JS Global, said the rally reflected a turnaround in investor sentiment due to better economic indicators and policy continuity. According to data from JS Global, Pakistan Stock Exchange (PSX), and Bloomberg, Pakistan’s performance outshone China (16%), Vietnam and Korea (10% each), and India (6%), while the Philippines, Indonesia, Taiwan, Malaysia, and Thailand posted negative returns. Thailand declined the most, by 16%.
Despite the rally, Pakistan’s equity market remains undervalued. It trades at a price-to-earnings (P/E) multiple of just 6.3 times, far below regional averages. India trades at 23.1 times, Taiwan at 16.5, Malaysia at 14.1, and China at 13.4. The Philippines and Indonesia also trade at higher multiples — 10.2 and 10.9, respectively. Analysts believe this valuation gap highlights strong upside potential, particularly for long-term investors seeking undervalued emerging market exposure.
Muhammad Awais Ashraf of AKD Securities credited the KSE-100 Index’s momentum to aggressive monetary easing, tight fiscal policy, and a strong external account. These factors made equities the top asset class for a second straight year. The KSE-100 rose by 60.1% in local currency and 57.1% in USD terms, driven largely by capital appreciation. The rupee depreciated by 1.9% in FY25, after appreciating 2.7% in FY24. Rising import demand and limited external financing impacted the currency, despite a current account surplus.
Investor participation surged in FY25. Trading volumes rose 43.6% year-on-year to a record 823 million shares. The value traded jumped 82.6% to Rs38.1 billion.