Pakistan’s stock market witnessed a historic surge in activity as daily trading value reached around Rs85 billion in the ready market, the highest level seen in nearly 20 years.
The sharp rise in turnover reflects growing investor confidence and strong participation across the market.
According to market observers, the increase in trading volumes has been largely driven by heavy buying from local mutual funds. These institutions are shifting funds away from fixed-income investments and reallocating them toward equities in search of better returns.
This trend has gained momentum as interest rates continue to fall, making traditional savings instruments less attractive.
Since the beginning of 2026, the equity market has delivered solid gains, rising by about 6.3 percent in just the first four trading sessions of the year.
The strong early performance has further encouraged investors to increase exposure to stocks, adding to overall market activity.
Over the past 18 months, returns on fixed-income products have declined sharply. Yields that were above 24 percent in mid-2024 have now dropped to nearly 9 to 10 percent.
This significant fall has changed investor preferences, with many choosing equities as a better option for higher returns.
Analysts say that the current market environment is favorable for stocks due to lower interest rates, high liquidity, and improving risk appetite.
Continued participation by institutional investors, especially mutual funds, has provided stability and depth to the market.
Experts believe that if economic conditions remain supportive and interest rates stay low, equity markets may continue to attract fresh inflows.
However, they also advise investors to remain cautious and focus on fundamentally strong companies as market valuations continue to rise.