PSX outpaces peers despite late-year jitters
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KARACHI: The Pakistan Stock Exchange (PSX) outperformed most major global markets in the first nine months of the outgoing fiscal year, with the KSE-100 index rising by 18.4 per cent. However, geopolitical tensions and foreign selling eroded some of these gains in the final quarter, according to the Economic Survey 2025-26, released on Thursday.
The index climbed from 125,627 points at the close of FY25 to 148,743 points by the end of March, having touched an all-time high of 189,167 points on Jan 23 — a level from which it shed more than 40,000 points over the following two months.
The survey, released by Finance Minister Aurangzeb on the eve of the federal budget for 2026-27, attributed the robust PSX performance to improving macroeconomic fundamentals, easing inflation, declining interest rates, strong corporate earnings and the successful review of the International Monetary Fund’s Extended Fund Facility programme, along with subsequent tranche disbursements.
However, the momentum faded from early February as tensions with Afghanistan, the escalating conflict in the Middle East, higher global oil prices, foreign selling, domestic profit-taking and the seasonal slowdown during Ramazan dragged the index down from its January peak.
Market capitalisation rose to Rs16.53 trillion ($59.23 billion) by March 31, up 8.5pc — or Rs1.3tr — from Rs15.24tr at the end of June 2025. The market’s dollar value had peaked at $74.44bn in January before retreating alongside the index.
The PSX witnessed 11 news listings during the outgoing fiscal year, reflecting growing momentum in Pakistan’s capital market as both institutional and retail participation continue to strengthen despite global economic uncertainties.
In a regional comparison, the KSE-100’s 18.4pc return placed it among Asia’s better-performing markets, behind South Korea’s KOSPI, which surged 64.5pc, Thailand’s SET (32.9pc), Vietnam’s VN30 (23.8pc) and Singapore’s Straits Times (23.2pc), but well ahead of the MSCI Emerging Market Index (13.8pc). India’s Sensex declined 13.9pc over the same period.
The debt market also remained active. The government has raised Rs5.1tr through 32 auctions of debt securities conducted via capital market infrastructure since December 2023, while sovereign sukuk issuances worth Rs1.86tr were carried out during the period under review.
Published in Dawn, June 12th, 2026
