KSE-100 beats US, India & Germany to emerge among top global performers in FY25
Pakistan Stock Exchange (PSX) emerged as one of the top-performing stock markets in the world during FY25, with the benchmark KSE-100 Index delivering a robust 55.5% return in USD terms, securing the third spot globally, revealed Arif Habib Limited (AHL) in its latest report.
Only Ghana's GGSECI Index, offering a 140.7% return and Slovenia's SBITOP Index (56.7%) performed better than KSE-100 during the outgoing fiscal year, data released by the brokerage house showed.
In comparison to other global markets, Pakistan outperformed major developed and emerging economies.
The US Nasdaq Index returned 14%, Germany's DAX 46.9%, India's Sensex 3.2%, and Japan's Nikkei 12.8%.
Most regional markets trailed far behind, with countries like Turkey and Bangladesh posting negative returns of -28.1% and -13.6% respectively.
During the outgoing fiscal, the KSE-100 Index delivered a stellar performance, surging by 58.6% in PKR terms and an impressive 55.5% in USD terms to close at 124,379, up from 78,445 at the end of FY24.
'This remarkable rally was driven by aggressive monetary easing, improved market liquidity, and the unlocking of fundamental value across key sectors,' said AHL.
Regional portfolio investment
As per the report, widespread net selling by foreigners was observed across all listed regions in FY25. Taiwan recorded the highest outflow at $28,783 million, followed by South Korea at $23,577 million, and India at $11,263 million.
Outflows were also seen in Malaysia at $3,546 million, Vietnam at $3,101 million, and Thailand at $3,207 million. Relatively smaller net sells were recorded in Indonesia at $1,634 million, Philippines at $477 million.
Meanwhile, Pakistan saw an outflow of $300 million.
'Possible reasons for this uniform net selling trend include geopolitical tensions, reciprocal tariffs announced by the US, high global interest rate initially prompting capital withdrawal, strong US dollar pressure, and a shift toward developed markets,' read the report.
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Business Recorder
7 hours ago
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KSE-100 beats US, India & Germany to emerge among top global performers in FY25
Pakistan Stock Exchange (PSX) emerged as one of the top-performing stock markets in the world during FY25, with the benchmark KSE-100 Index delivering a robust 55.5% return in USD terms, securing the third spot globally, revealed Arif Habib Limited (AHL) in its latest report. Only Ghana's GGSECI Index, offering a 140.7% return and Slovenia's SBITOP Index (56.7%) performed better than KSE-100 during the outgoing fiscal year, data released by the brokerage house showed. In comparison to other global markets, Pakistan outperformed major developed and emerging economies. The US Nasdaq Index returned 14%, Germany's DAX 46.9%, India's Sensex 3.2%, and Japan's Nikkei 12.8%. Most regional markets trailed far behind, with countries like Turkey and Bangladesh posting negative returns of -28.1% and -13.6% respectively. During the outgoing fiscal, the KSE-100 Index delivered a stellar performance, surging by 58.6% in PKR terms and an impressive 55.5% in USD terms to close at 124,379, up from 78,445 at the end of FY24. 'This remarkable rally was driven by aggressive monetary easing, improved market liquidity, and the unlocking of fundamental value across key sectors,' said AHL. Regional portfolio investment As per the report, widespread net selling by foreigners was observed across all listed regions in FY25. Taiwan recorded the highest outflow at $28,783 million, followed by South Korea at $23,577 million, and India at $11,263 million. Outflows were also seen in Malaysia at $3,546 million, Vietnam at $3,101 million, and Thailand at $3,207 million. Relatively smaller net sells were recorded in Indonesia at $1,634 million, Philippines at $477 million. Meanwhile, Pakistan saw an outflow of $300 million. 'Possible reasons for this uniform net selling trend include geopolitical tensions, reciprocal tariffs announced by the US, high global interest rate initially prompting capital withdrawal, strong US dollar pressure, and a shift toward developed markets,' read the report.
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Stocks emerge as best-performing asset class in Pakistan for FY25
Stocks emerged as the top-performing asset class in FY25 with a return exceeding 55%, led by aggressive monetary easing, improved market liquidity, and the unlocking of fundamental value across key sectors, said Arif Habib Limited (AHL). 'The KSE-100 exhibits the strongest performance across all asset classes, boasting a FY25 return of 55.58%, significantly outperforming gold (47.56%), T-Bills (12.68%), Defence Saving Certificates (12.61%), bank deposits (12.60%), PIBs (11.97%), and USD/PKR (1.91%),' AHL said, in its report on Friday. As per the brokerage house, the KSE-100's (benchmark index of the Pakistan Stock Exchange) returns consistently outshine those of other major asset categories. 'Even the historical gains from gold and T-Bills in recent times have been unable to match the impressive surge of the equity market.' It added that the KSE-100's CAGR, or Compound Annual Growth Rate, is higher than all other asset classes in every long-term benchmark, from a 5-year holding period to a 20-year holding period. 'This performance suggests that the KSE-100, particularly the equity market, is the most lucrative asset class for investors with a long-term horizon in Pakistan,' it added. KSE-100 in FY25 During the outgoing fiscal, the KSE-100 Index delivered a stellar performance, surging by 58.6% in PKR terms and an impressive 55.5% in USD terms to close at 124,379, up from 78,445 at the end of FY24. 'This remarkable rally was driven by aggressive monetary easing, improved market liquidity, and the unlocking of fundamental value across key sectors,' said AHL. The brokerage house shared that FY25 also witnessed record market participation, with the highest-ever trading volumes and the highest traded value since FY21. During FY25, the State Bank of Pakistan (SBP) slashed the policy rate from 21.5% to 11%, marking one of the most aggressive easing cycles in the country's history. Moreover, Fitch Ratings upgraded Pakistan's credit rating from CCC+ to B- following successful staff-level agreements with the IMF on the $7 billion Extended Fund Facility and the $1.3 billion Resilience and Sustainability Facility. Meanwhile, the PKR depreciated by a modest 1.9% against the USD FY25. However, despite the gains, geopolitical tensions jolted the market during the year, with sharp declines triggered by escalations between Pakistan and India in May'25, and Iran and Israel in Jun'25. 'However, subsequent ceasefires fueled some of the strongest market rallies in recent history,' it said.
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