Pakistan’s equity market has recorded its highest daily traded value in almost 20 years, with ready-market turnover surging to around Rs85 billion, reflecting strong investor confidence and elevated trading activity.

Market participants attribute the sharp rise in volumes primarily to aggressive buying by local mutual funds, supported by a continued shift of funds from fixed-income instruments into equities.

The ongoing asset reallocation has been driven by changing return dynamics, as declining yields on fixed-income products have reduced their relative appeal, encouraging investors to seek higher returns in the stock market.

Since the start of 2026, equities have delivered robust performance, gaining 6.3 percent during the first four trading sessions of the year, underscoring the strength of the ongoing rally at the Pakistan Stock Exchange.

For context, returns on fixed-income instruments have fallen sharply over the past 18 months. Yields that stood above 24 percent around mid-2024 have eased to roughly 9 to 10 percent, accelerating the shift of capital toward equities.

Analysts believe that in an environment of falling interest rates and ample liquidity, equities have emerged as the preferred asset class, benefiting from improved risk appetite, sustained institutional participation and rising market valuations.