Pakistan’s equity market ended the week on a strong note, with the Pakistan Stock Exchange (PSX) benchmark KSE-100 index rising 0.58% week-on-week by December 26, 2025. The gain extended the market’s record-breaking rally amid improving macroeconomic and policy conditions.
Investor confidence strengthened after the successful privatisation of Pakistan International Airlines. The government sold a 75% stake in the airline to a consortium led by AHCL for Rs135 billion, marking Pakistan’s first major privatisation in nearly two decades and a key milestone under the International Monetary Fund programme.
Market sentiment also benefited from the State Bank of Pakistan’s 50-basis-point cut in the policy rate to 10.5% last week. The move revived risk appetite and strengthened expectations of further monetary easing as inflation continues to moderate.
Today, 59% of the total equity value traded at PSX was in Shariah-compliant stocks!
Learn about the top 3 Shariah Compliant Stocks in today's PSX Market Breakdown pic.twitter.com/TXQAxCc95U
— PSX (@pakstockexgltd) December 26, 2025Fixed-income indicators echoed improving confidence. Treasury bill auctions attracted strong participation, while yields declined sharply across all tenors. The government raised Rs883 billion against a target of Rs600 billion, with yields falling by 36-72 basis points, reflecting ample liquidity and easing inflation expectations.
External financing flows further supported the outlook. The World Bank approved $700 million, while the Asian Development Bank signed two financing initiatives worth $730 million. Cumulatively, Pakistan secured nearly $3 billion in foreign assistance during the first five months of FY26.
Market Snapshot – December 26th, 2025
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•KSE-100: Pullers & Draggers
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— PSX (@pakstockexgltd) December 26, 2025The PSX opened the week on a subdued note. On Monday, the KSE-100 closed at 171,204, down 200 points. The index remained range-bound on Tuesday and Wednesday, closing at 171,074 and 170,830, respectively.
Momentum returned on Friday. The index surged 0.92% to close at a new all-time high of 172,400, lifting the weekly performance firmly into positive territory.
Average daily trading volumes stood at 736 million shares, while average traded value reached Rs31.5 billion, according to market data. Analysts noted that although turnover fell by about 25%, the index continued to extend its record run.
