PSX rebounds as institutions chase value shares

• KSE-100 Index settled at 168,893.08 points, up 4,266.79 points, or 2.59%.
• Index reached an intraday high of 169,374.27, up 4,747.98 points, or 2.88%.
• Index recorded a low of 162,953.63, down by 1,672.66 points, or -1.02%.

The bourse rebounded on Thursday as renewed institutional buying in value names and improving corporate earnings helped restore confidence in index-heavyweight shares, after rollover-week deleveraging left the market with a firmer base.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index closed at 168,893.08 points, up 4,266.79 points, or 2.59%, from the previous close of 164,626.29.

The index reached an intraday high of 169,374.27 (up 4,747.98 points, or 2.88%) and a low of 162,953.63 (down 1,672.66 points, or -1.02%).

"Renewed institutional buying in value stocks and improving corporate earnings helped restore sentiments in index heavyweight stocks," said Huzaifa Riaz, Director, Mayari Securities (Pvt) Limited. 

"The reversal also followed a phase of systematic deleveraging earlier during the rollover week, offering the market a firmer base for the next move," he added.

National Bank of Pakistan (NBP) posted record earnings of Rs85 billion for calendar year 2025, up 227% from a year earlier, with EPS of Rs39.9 and a highest-ever cash dividend of Rs35 per share (vs Rs8 in 2024). On a quarterly basis, profit was Rs19.3 billion, down 13% YoY and 16% from the previous quarter. Net interest income rose 45% to Rs248.6 billion, driven by a 42% decline in interest expense that more than offset a 28% drop in interest income.

JS Bank Limited reported profit before tax of Rs6.19 billion for 2025 (vs Rs6.37 billion a year earlier). Profit after tax was Rs2.79 billion, while EPS stood at Rs1.36 (vs Rs1.39 in 2024). Total income increased 4.0% YoY to Rs40.31 billion; net interest income was flat at Rs27.15 billion, while non-mark-up income rose 17% to Rs13.16 billion. Total assets grew 3% to Rs655.64 billion, and the deposit mix improved as non-remunerative deposits rose 12% YoY to Rs222.12 billion, lifting their share to 41% from 38%.

United Bank Limited (UBL) reported consolidated fourth-quarter earnings of Rs29.9 billion (EPS Rs11.9), up 15% YoY but down 15% from the previous quarter. For full-year 2025, UBL posted earnings of Rs130 billion (EPS Rs51.9), up 73% from 2024, and declared a final dividend of Rs8 per share, taking the total 2025 payout to Rs29.5 per share. Topline Research said the fourth-quarter result fell short of industry expectations due to higher non-interest expenses, with operating costs rising 21% YoY and 34% QoQ to Rs43.6 billion.

Pakistan’s non-bank financial sector expanded in the second half of 2025, with total assets rising 21% to Rs6.84 trillion by December 31, 2025, from Rs5.63 trillion at end-June, according to the Securities and Exchange Commission of Pakistan (SECP). 

Mutual funds managed Rs4.5 trillion—66.3% of total assets—with allocation of 44% in money market funds, 23% in income funds and 14% in equity funds. Mutual fund investor accounts rose 8.0% to 845,000 by end-December, while voluntary pension scheme accounts reached 143,154, up 30% since June 2025. 

The lending segment posted the fastest growth, with assets up 65% over six months to Rs824 billion, while Sharia-compliant assets stood at Rs2.47 trillion (about 36% of total). The number of registered non-bank financial companies and Mudaraba entities increased to 185 from 174.

On the previous session on Wednesday, the KSE-100 fell 1,632.25 points (0.98%) to close at 164,626.29, after trading between 168,191.65 and 164,229.36.