Moaaz Manzoor

Trading activity at the Pakistan Stock Exchange (PSX) reached unprecedented levels in 2025, reflecting rising liquidity, stronger investor confidence, and improving macroeconomic fundamentals.

Average daily trading volume during CY25 surged to an all-time high of 799 million shares, registering a 40.4% year-on-year increase. The average daily traded value also rose sharply by 64% to $131 million, highlighting a significant expansion in market depth and participation.

According to a research report by Arif Habib Limited titled “Market Performance: KSE-100 Second-Best Frontier Market in CY25”, available with Wealth Pakistan, the strong momentum was driven by improving economic stability, easing inflationary pressures, and increased participation from domestic investors.

Sector-wise data shows that technology stocks led trading activity, averaging 124 million shares per day, followed by banking stocks at 88 million shares and power sector stocks at 74 million shares. Investment banks, food companies, cement manufacturers, and refinery stocks also recorded sustained investor interest throughout the year.

On an individual stock basis, WorldCall Telecom Limited emerged as the most actively traded scrip with an average daily volume of 62 million shares. It was followed by K-Electric Limited at 56 million shares and The Bank of Punjab at 42 million shares. Other actively traded stocks included Cnergyico PK Limited and Pakistan International Bulk Terminal Limited.

Value-based trading remained concentrated in large-cap stocks. The banking sector led with an average daily traded value of $17 million, followed by cement at $15 million and the exploration and production sector at $14 million. Among individual companies, Pakistan State Oil Company Limited topped the list with an average daily traded value of $6.6 million, followed by Pakistan Petroleum Limited at $4.9 million, Oil and Gas Development Company Limited at $4.7 million, Mari Petroleum Company Limited at $4.2 million, and Hub Power Company Limited at $4.1 million.

The report further noted that broad-based sectoral participation supported the overall market rally. Banking stocks contributed the most to the KSE-100 Index’s upward movement, adding 26,336 points during 2025. The fertilizer sector added 10,097 points, cement contributed 8,618 points, power added 3,407 points, and the exploration and production sector added 2,662 points.

Sectoral performance remained strong across the board. The vanaspati sector recorded exceptional gains of 417%, while banking stocks advanced 104% and the transport sector rose 101%. Cement stocks also posted a robust 93% increase during the year.

Arif Habib Limited noted that declining inflation, lower interest rates, and ample domestic liquidity significantly strengthened market sentiment. The year also saw seven initial public offerings and several notable mergers and acquisitions, reinforcing investor confidence and underscoring the growing depth and resilience of Pakistan’s capital market in 2025.

Credit: INP-WealthPk