Shares moved within a tight band on Friday when mutual fund activity, robust earnings and optimism over economic outlook kept the stock market stable.
Pakistan Stock Exchange’s (PSX) Benchmark KSE-100 index climbed up to an intraday height of 147,534.41, getting 1,005.11 points or 0.69%before retiring to a low of 146,894.62, reflecting a decrease of 35.22 points or 0.02%.
“It is a number of bound activity today led by mutual funds liquidity and earnings seasons. Moody’s credit rating has already been incorporated,” added Aah Soomro, an independent investment and financial analyst.
“Better results, expectations of further improvements in the economic environment are driving the market,” said Samiullah Tariq, head of research and development at Pakistan Kuwait Investment Company.
Moody’s upgraded Pakistan’s credit rating from CAA2 to CAA1 with reference to an improved external position and progress with reforms under the IMF (International Monetary Fund) Extended Fund Facility (EFF) program.
The Agency noted that currency reserves are likely to continue to improve, although they depend on timely financing from official partners, while fiscal strengthening is supported by a wider tax base. However, it warned that the affordability of debt remains among the weakest globally, with governance and political uncertainty still high.
This marks the third upgrade of four months after similar features of S&P Global Ratings and Fitch Ratings, supported by Prime Minister Shehbaz Sharif’s government’s obligation to fiscal consolidation and reforms.
On the performance front, Pakistan secured the top global location for equity returns in USD over FY24 – FY25 combined, Bloomberg showed data. In FY25 alone, Pakistan ranked eighth globally, but surpassed regional peers and returned far more than India’s BSE Sensex (+3.2%), China (+14.8%) and India’s wider market (+6%), according to AHL data.
State Bank of Pakistan’s (SBP) Latest Monetary Policy Report (MPR) Expected GDP growth of 3.25-4.25% in FY26 and a deficit in current zero and 1.0% of GDP.
With the political rate maintained by 11% in June and July, SBP expects the real political rate to remain positive to stabilize inflation within the target. Reserves are expected to reach $ 15.5 billion at the end of December 2025, supported by expected financial influx and continued SBP FX-Purchase.
On Wednesday, KSE-100 dropped by 476.02 points, or 0.32%, to 146,529.31 points from 147,005.32 points registered in the last session. Today’s highest index remained at 147,892.25 points, while the lowest level was registered at 146,417.8 points.
