2025 was second best Ramazan for PSX returns since 2015, says firm

A brokerage firm, in its note, confirmed that 2025 was the second-best Ramazan for the Pakistan Stock Exchange (PSX) returns since 2015.

Arif Habib Limited highlighted that the benchmark KSE-100 index recorded a 5.2 per cent return during Ramazan in 2025.

The bull run during the month was majorly attributed to the staff-level agreement (SLA) with the International Monetary Fund (IMF), in addition to the government’s circular debt resolution plan, where media reports suggested that significant progress had been made and the government was working to reduce electricity prices.

The market rebounded, mainly driven by the SLA reached following the first review under the $7 billion Extended Fund Facility, paving the way for releasing the second tranche of $1.1bn. A new 28-month $1.3bn arrangement under the Resilience and Sustainability Facility (RSF) was also reached.

Pakistan’s GDP grew by 1.73 per cent year-on-year in 2QFY25, while GDP growth for 1HFY25 stood at 1.54pc compared to 2.33pc in 1HFY24.

Meanwhile, the government raised Rs640bn, slightly below the T-bill auction target of Rs650bn.

It stated that 2024 saw the “strongest performance, with the KSE-100 delivering an impressive 6.9pc return” and added that the average return during the month was 1.3pc.

According to Topline Securities, major developments during Ramazan for the stock market included: low inflation reading for the month of February, unchanged monetary policy, and remittances clocking in $3.1 billion — up by 39pc.

The PSX posted a positive performance in March and Ramazan. The index, which reached an intra-month high of 119,422 after opening at 113,499, fell to an intra-month low of 111,717. However, by the end of the month, it managed to close at 117,807, marking an increase of 4,555 points, or 4.02pc. The index depicted a decline of 635 points or 0.5pc week-on-week.

Topline Securities also noted that car sales for Feb 2025 were at 12,084 units (up 24pc year-on-year while down 29pc month-on-month), adding that the current account recorded a $12 million deficit for the month, while the current account for 8MFY25 remained at a surplus of $691m.

“Average daily traded volume and value for the day stood at 366mn shares and PKR.24bn respectively,” It said.