The Pakistan Stock Exchange’s benchmark KSE-100 Index recorded a 9% increase in profitability in 2025, with total earnings reaching approximately $6.3 billion, according to data released by Topline Securities.
However, the headline growth conceals a sharp divide between sectors. Exploration and Production (E&P) companies saw their earnings drop by 22% year-on-year, significantly weighing on the index’s overall performance.
When E&P firms are excluded, the market presents a much stronger picture, with profitability rising by around 15%—highlighting the extent to which energy-sector weakness dragged down broader gains.
The earnings growth was largely driven by strong performances in banking, cement, technology, and automobile sectors. These segments helped offset declines in oil and gas-related companies and pointed to a wider recovery across key areas of the economy.
Market data also shows that gains were heavily concentrated in these leading sectors, while E&P companies lagged behind, limiting the full impact of the broader rally.
Analysts say the divergence reflects shifting dynamics within the market, where cyclical and domestic-demand-driven sectors are gaining momentum even as energy-linked stocks face pressure.
