Market Gains Ahead of IMF Visit and Economic Review
The Pakistan Stock Exchange (PSX) saw a strong rally on Friday morning, with the benchmark KSE-100 Index climbing above the 147,000 mark after Moody’s upgraded Pakistan’s credit rating.
At 10:40am, the index stood at 147,486.35 points, up 957.05 points or 0.65%. Gains were led by automobile assemblers, commercial banks, fertilizer, oil and gas exploration companies, oil marketing firms, and refineries. Major stocks such as ARL, NRL, OGDC, POL, PPL, PSO, MCB, MEBL, and NBP all traded higher.
Market analysts said the rally followed Moody’s decision to raise Pakistan’s local and foreign currency issuer and senior unsecured debt ratings to Caa1 from Caa2. The agency also upgraded the senior unsecured MTN programme rating to (P)Caa1 from (P)Caa2, while shifting Pakistan’s outlook to “stable” from “positive.”
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Business bodies including the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), the Businessmen Forum, and the North Karachi Association of Trade and Industry (NKATI) praised the move, calling it a positive signal for the country’s economy.
The improved sentiment comes ahead of an expected visit by an International Monetary Fund (IMF) team in late September. Pakistan hopes to secure the third tranche of $1 billion after the next programme review.
Earlier this week, the PSX had faced mild selling pressure as investors reacted to a widening trade deficit and concerns over provincial tax collection targets. On Wednesday, the KSE-100 Index closed at 146,529.31 points, down 0.32%.
