Market Report

The PSX KSE-100 index experienced a positive trend in December 2025, driven by macroeconomic stability and positive investor sentiment. The index closed the month higher than it opened, with strong average daily trading volumes, reflecting increased market participation and confidence. Key sectors such as Banking, Oil & Gas, and Technology contributed significantly to the market's performance.

+3.6%

KSE-100 Change

3.6%

Average Daily Volume

867.1M

Market Capitalization

PKR 19.7T

Opening

168,062.19

Closing

174,054.3

High

172,400.73

Low

166,024.79

Key Highlights

  • KSE-100 Index closed at 174,054 points, up 4.43% from November.
  • Average daily trading volume increased by 61.49% to 867.06 million shares.
  • The Banking sector was a major driver, contributing 2,939 points to the index.
  • Technology and Communication sectors also showed strong performance.
  • IMF approved a $1.2 billion loan tranche, boosting investor confidence.
  • Pakistan's economy showed signs of stabilization, with foreign exchange reserves rising.
  • Trade deficit widened in December 2025, posing a challenge.

KSE-100 Daily Performance

Sector Performance

Top Gainers

#1

ISL

Ismail Industries Limited

+10.0%

PKR 1,984.69

#2

INIL

International Industries Limited

+8.5%

PKR 0

#3

DHPL

Drekkar Holding (Private) Limited

+7.7%

PKR 0

#4

BNWM

Bannu Woollen Mills Limited

+6.3%

PKR 0

#5

LOTCHEM

Lotte Chemical Pakistan Limited

+6.1%

PKR 0

Top Losers

#1

TRG

TRG Pakistan Limited

-6.7%

PKR 0

#2

HUMNL

Hum Network Limited

-4.3%

PKR 0

#3

PTC

Pakistan Telecommunication Company Limited

-3.2%

PKR 0

#4

CPHL

Colgate-Palmolive Pakistan Limited

-3.1%

PKR 0

#5

SEARL

Searle Company Limited

-2.4%

PKR 0

Major Events

IMF approves $1.2 billion loan tranche for Pakistan

The IMF approved the release of $1.2 billion in loans to Pakistan, citing the country's progress in implementing economic reforms and maintaining macroeconomic stability. This disbursement is expected to further bolster investor confidence and support the country's economic recovery.

PSX average daily traded volume up 49.5% WoW

The Pakistan Stock Exchange (PSX) continued its bullish momentum during the week, driven by investor optimism following the announcement of IMF Executive Board approval. Market participation strengthened by 49.5%WoW with average daily traded volume up to 1.3 billion shares.

Pakistan's economy shows signs of stabilization

Pakistan's economy showed visible signs of stabilisation during 2025, with financial experts saying the year marked a clear shift away from crisis management towards relative stability. The KSE-100 Index crossed 170,000 points, posting a gain of over 60%.

Pakistan's trade deficit widens to $3.8 billion in December 2025

Pakistan recorded a trade deficit of $3.8 billion in December 2025, with exports declining and imports rising. This widening trade deficit poses a challenge to the country's economic stability.

Market Analysis

December 2025 was a positive month for the Pakistan Stock Exchange, with the KSE-100 index showing significant gains. Investor confidence was boosted by the IMF's approval of a $1.2 billion loan tranche and signs of stabilization in the Pakistani economy. Key sectors such as Banking, Oil & Gas, and Technology drove the market's performance, with strong contributions to the index's upward movement. Trading volumes also increased, indicating greater market participation and liquidity. However, the widening trade deficit remains a concern and could pose challenges in the coming months. Sector-wise, Banking and Technology stocks led the trading activity, while individual stocks like WorldCall Telecom and K-Electric saw high trading volumes. Value-based trading was concentrated in large-cap stocks, with the banking sector leading in average daily traded value.

Market Outlook

The outlook for the Pakistan Stock Exchange in the coming month remains cautiously optimistic. While the market has shown strong performance in recent months, it is important to monitor key economic indicators such as inflation, interest rates, and the trade balance. Continued implementation of economic reforms and prudent fiscal policies will be crucial for sustaining investor confidence and driving further market growth. Investors should also pay close attention to global economic developments and geopolitical events, which could impact market sentiment and capital flows. The successful completion of the IMF review and the passing of the FY26 budget in line with IMF guidelines will be key drivers for the market in the coming months.