Pakistan’s stock market closed fiscal year 2025-26 (FY26) with record-breaking trading activity and one of its strongest annual performances, driven by improved liquidity and renewed investor confidence.
According to research by Arif Habib Limited, the benchmark KSE-100 Index climbed 44 percent in rupee terms and 46 percent in US dollar terms during FY26, ending the fiscal year at 180,302 points, compared with 125,627 points at the close of FY25.
The rally was supported by stronger market liquidity, improved macroeconomic conditions, and the re-rating of fundamentally strong companies across multiple sectors. Despite periods of volatility triggered by geopolitical developments, the market maintained its upward momentum throughout the year.
Trading activity also reached unprecedented levels.
The average daily traded volume surged to 913 million shares, the highest ever recorded on the Pakistan Stock Exchange (PSX), highlighting a sharp increase in investor participation.
At the same time, the average daily traded value rose to $152 million, marking its highest level since FY08 and indicating a significant increase in capital flowing through the equity market.
The combination of record trading volumes and higher traded value reflects a substantial improvement in market liquidity, allowing investors to execute transactions more efficiently while signaling stronger participation from both institutional and retail investors.
What the Charts Show
The first chart illustrates the steady evolution of average daily trading volumes over the past two decades. While activity fluctuated across previous fiscal years, trading accelerated significantly during FY25 before reaching an all-time high of 913 million shares in FY26, surpassing every previous record.
The second chart tracks average daily traded value since FY09. After reaching elevated levels in FY17, market turnover declined for several years before rebounding strongly over the past two fiscal years. In FY26, average traded value climbed to $152 million, its highest level since FY08, underscoring the return of liquidity and stronger investor engagement.
The record-high trading activity, coupled with a 44 percent gain in the KSE-100 Index, made FY26 one of the strongest years in PSX history, reflecting improving market fundamentals and broad-based investor optimism.
