KSE-100 caps a stellar 2025
Pakistan’s benchmark equity index, the KSE-100, delivered a robust performance in calendar year 2025, posted a return of 51% and closing at a fresh all-time high.
This marks the third consecutive year of strong double-digit gains, following returns of 55% in CY23 and an exceptional 84% in CY24.
With this performance, the KSE-100 ranked as the second-best performing frontier market globally, trailing only Romania during the year.
According to the findings of Arif Habib Limited, the KSE-100 has generated an average annual return of 64% over the past three years, placing it among the top-performing equity markets worldwide over this period.
In dollar terms, the market recorded cumulative returns of 3.5x over three years an achievement unmatched by any other market on a comparable three-year basis.
The equity market also significantly outperformed most alternative asset classes. Over the same timeframe, returns from real estate stood at 17%, Pakistan Investment Bonds (PIBs) and T-bills at 12% each, Defence Savings Certificates at 11%, and bank deposits at 9%. Gold emerged as the only competing asset class with higher returns of 65%.
Despite intermittent short-term volatility, the long-term performance of the KSE-100 highlights its structural resilience and growth potential.
Historical returns remain strong, with annualized gains of 23% over 30 years, 27% over 25 years, 21% over 20 years, 23% over 15 years, 22% over 10 years, and a notable 37% over the last five years, underscoring the market’s sustained long-term appeal for investors.
