The Pakistan Stock Exchange (PSX) opened on a positive note Friday, with the KSE-100 Index crossing the 147,000 level after Moody’s upgraded Pakistan’s credit rating.
By 10:40am, the benchmark index had gained 957.05 points, or 0.65%, reaching 147,486.35. The rally was supported by strong buying in sectors such as automobiles, banking, fertilizers, oil and gas exploration, oil marketing companies, and refineries. Blue-chip stocks including OGDC, POL, PPL, PSO, MCB, MEBL, and NBP traded higher.
Analysts linked the gains to Moody’s decision to raise Pakistan’s local and foreign currency issuer and senior unsecured debt ratings from Caa2 to Caa1, while shifting the country’s outlook from “positive” to “stable.” The senior unsecured MTN programme rating was also upgraded.
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Major business associations, including the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and the North Karachi Association of Trade and Industry (NKATI), welcomed the upgrade, describing it as a sign of improving investor confidence.
The market optimism also coincides with anticipation of an International Monetary Fund (IMF) mission’s visit in late September, with Pakistan expecting $1 billion in funding following the next review.
Earlier in the week, the PSX saw a minor downturn due to concerns over the widening trade deficit and unmet tax collection targets. On Wednesday, the index closed at 146,529.31, down 0.32%.