Karachi: The KSE-100 Index has outshone other asset classes for the second consecutive year, posting a 60.1% return in fiscal year 2025. This achievement is largely attributed to aggressive monetary easing, a strict fiscal policy, and a robust external account.

Banks were the leading contributors to the KSE-100 Index’s impressive performance, adding 15,160 points. The fertilizer sector followed with 8,292 points, while exploration and production companies contributed 6,845 points. The cement sector added 5,596 points to the index.

Mutual funds, reversing a three-year trend of net selling, became net buyers in FY25, absorbing significant foreign selling.

The continuation of monetary easing, prompted by decreasing inflation, fiscal discipline, and a strong external account, is expected to keep equities attractive. Structural reforms also play a crucial role in this optimistic outlook, according to AKD Securities Limited.