Moaaz Manzoor

Pakistan’s equity market capped an exceptional 2025 on a strong note, with the benchmark KSE-100 Index closing December at record levels after delivering robust monthly and annual gains amid policy easing, macroeconomic stability, and sustained investor participation.

The Pakistan Stock Exchange closed December 2025 at 174,054 points, registering a gain of 7,736 points, or 4.0% month-on-month, according to Chase Securities Monthly Market Review. The index maintained a steady upward trajectory throughout the month, reflecting strong investor confidence as buying interest persisted across select sectors and index heavyweights.

On a year-on-year basis, market performance was exceptional. The KSE-100 Index climbed from 115,127 points at the close of December 2024 to 174,054 points by the end of December 2025, translating into a gain of 58,927 points, or 51%. This marked one of the strongest annual performances in the market’s history, underscoring both the depth of the equity market recovery and the scale of wealth creation during the year.

Market breadth remained supportive in December, with several stocks posting outsized gains. Quice Food Industries Limited surged 153%, followed by First Credit and Investment Bank Limited (129%), Sindh Modaraba (112%), and Crescent Star Insurance Limited (99%). Within the KSE-100 universe, Pakistan Telecommunication Company Limited advanced by 50%, while Javedan Corporation, Kot Addu Power Company, and Pakistan International Bulk Terminal also delivered strong monthly returns, contributing meaningfully to index performance.

From a broader market perspective, JS Global Capital, in its December 2025 Monthly Wrap, reported that the KSE-100 gained 4.4% during the month, closing near 175,000 points. The brokerage attributed the December rally to a 50-basis-point cut in the policy rate, improved foreign exchange reserves following the International Monetary Fund’s US$1.2 billion EFF and RSF disbursement, and progress on key structural measures, including the successful Pakistan International Airlines privatization process.

JS Global further noted that despite selective year-end profit-taking by institutional investors, overall market momentum remained intact. Foreign investors were net sellers during the month, while individual investors and banks emerged as net buyers, helping sustain liquidity and upward pressure on the index. The brokerage also highlighted that Pakistan’s equity market ended 2025 with a three-year cumulative return of 331%, reinforcing the strength of the ongoing bull market cycle.

Commenting on the market’s performance, Syed Zafar Abbas, Manager at Zahid Latif Khan Securities, told Wealth Pakistan that the market’s rise from around 115,000 points at the end of 2024 to approximately 174,000 points by December 31, 2025, represented a gain of nearly 59,000 to 60,000 points, which he described as exceptional. He added that the continuation of gains into early January reflects sustained momentum, despite intermittent corrections.

Analysts believe that while short-term volatility may persist, the strong December close and exceptional full-year performance have reinforced confidence in the PSX’s medium-term outlook as the market enters the new year.

Credit: INP-WealthPk