PSX rises nearly 600 points after credit rating boost
The Pakistan Stock Exchange (PSX) started the week on a strong note as investors welcomed an upgrade in the country’s sovereign credit rating alongside encouraging corporate earnings.
In early trading on Monday, the benchmark KSE-100 Index surged by nearly 600 points, standing at 147,091.44 around 10:30am. This represented a rise of 599.81 points, or 0.41%, compared to the previous close.
Strong buying was recorded in major sectors, including cement, banking, fertiliser, oil and gas, and power generation. Large-cap stocks such as HUBCO, SNGPL, SSGC, MARI, OGDC, PPL, POL, MEBL, and UBL all traded in positive territory.
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Market analysts said optimism stemmed from Moody’s decision to raise Pakistan’s sovereign credit rating from Caa2 to Caa1 while shifting the outlook to stable.
The global ratings agency pointed to progress in fiscal discipline, external account improvements, and implementation of IMF reforms as key reasons behind its move.
The upgrade came after the PSX touched an all-time intraday high of 147,534 points last week, eventually closing at 146,492 points, up 1,109 points or 0.8% on a week-on-week basis.
Globally, Asian markets also traded higher amid expectations of a possible US interest rate cut in September. Japan’s Nikkei reached a new record high, while indices in Taiwan and China saw fresh gains. Investors are awaiting guidance from Federal Reserve Chair Jerome Powell at the annual Jackson Hole symposium later this week.
Meanwhile, oil prices slipped as concerns over Russian supply eased. International developments also drew attention after US President Donald Trump met Russian leader Vladimir Putin in Alaska and signalled support for peace talks on Ukraine.
