AHL forecasts KSE-100 Index to reach 120,000 by December 2025

Arif Habib Limited (AHL) projects the KSE-100 Index will reach 120,010 points by December 2025, expecting a nearly 27% return in the next 13 months. The index recently closed at a record high of 94,763.64, outperforming other asset classes. The KSE-100 has gained 52% this year, supported by a stable exchange rate and an International Monetary Fund bailout. AHL's report highlights a favorable environment for stocks, citing declining interest rates and improving economic conditions. Despite a positive outlook, AHL anticipates corporate earnings growth will slow to 4.2% in 2025. It notes risks such as macroeconomic imbalances and political instability, while emphasizing a shift towards equities as the preferred investment class.