The Pakistan Stock Exchange (PSX) saw a strong rebound on Thursday, driven by renewed interest from institutional investors in value stocks and improving corporate earnings, which restored confidence in index-heavyweight shares. The KSE-100 Index hit an intraday high of 168,424.02 points, gaining 3,797.73 points, or 2.31%, compared to the previous close. The intraday low was 162,953.63 points, down 1,672.66 points, or 1.02%.
Institutional Buying and Market Confidence
According to Huzaifa Riaz, Director at Mayari Securities (Pvt) Limited, “Renewed institutional buying in value stocks and improving corporate earnings helped restore sentiment in index-heavyweight stocks.” He added that the rebound followed a period of systematic deleveraging during the rollover week, which provided the market with a firmer base for the next move.
Strong Bank Earnings Boost Investor Sentiment
National Bank of Pakistan (NBP) posted record earnings of PKR 85 billion for the 2025 calendar year, up 227% from the previous year. Its earnings per share (EPS) stood at PKR 39.9, with a record cash dividend of PKR 35 per share, compared to PKR 8 in 2024. Quarterly profit was PKR 19.3 billion, down 13% year-on-year and 16% from the previous quarter. Net interest income increased 45% to PKR 248.6 billion, driven by a 42% decline in interest expenses that offset a 28% drop in interest income.
PSX Slides Amid US-Iran Tensions and Roll-Over Volatility
JS Bank Limited reported a profit before tax of PKR 6.19 billion for 2025, compared with PKR 6.37 billion the previous year. Profit after tax was PKR 2.79 billion, with an EPS of PKR 1.36. Total income rose 4% year-on-year to PKR 40.31 billion, while net interest income remained flat at PKR 27.15 billion. Non-markup income increased 17% to PKR 13.16 billion. Total assets grew 3% to PKR 655.64 billion, and non-remunerative deposits rose 12% year-on-year, increasing their share from 38% to 41%.
United Bank Limited (UBL) reported consolidated Q4 earnings of PKR 29.9 billion (EPS PKR 11.9), up 15% year-on-year but down 15% from the previous quarter. For the full year, UBL posted earnings of PKR 130 billion (EPS PKR 51.9), up 73% from 2024, declaring a final dividend of PKR 8 per share, taking the total 2025 payout to PKR 29.5 per share. Operating costs rose 21% YoY and 34% QoQ to PKR 43.6 billion, slightly below industry expectations.
Growth in Non-Bank Financial Sector
Pakistan’s non-bank financial sector expanded significantly in the second half of 2025, with total assets rising 21% to PKR 6.84 trillion by December 31, up from PKR 5.63 trillion in June, according to the Securities and Exchange Commission of Pakistan (SECP).
Mutual funds managed PKR 4.5 trillion—66.3% of total assets—with allocations of 44% in money market funds, 23% in income funds, and 14% in equity funds. Investor accounts in mutual funds increased 8% to 845,000 by year-end, while voluntary pension scheme accounts rose 30% to 143,154 since June 2025.
The lending segment saw the fastest growth, with assets up 65% over six months to PKR 824 billion. Shariah-compliant assets stood at PKR 2.47 trillion, roughly 36% of total. The number of registered non-bank financial companies and Mudaraba entities rose from 174 to 185.
Market Performance in Recent Sessions
In the previous session on Wednesday, the KSE-100 Index fell 1,632.25 points (0.98%) to close at 164,626.29, trading between 168,191.65 and 164,229.36 points during the day.
