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.
American Dollar Exchange Rate