KARACHI: The Pakistan Stock Exchange (PSX) closed on a positive note on Friday, with the KSE-100 Index rising by 514.62 points or 0.37% to settle at 139,207.28.
The market opened on a positive note earlier in the day, spurred by investor optimism following S&P Global’s upgrade of Pakistan’s sovereign credit rating to ‘B-’ from ‘CCC+’, and its stable outlook. The rating upgrade, attributed to Pakistan’s stabilizing finances and reserves, was seen as a major boost to market sentiment.
Investors responded positively, with gains in key sectors, including automobile assemblers, commercial banks, oil and gas exploration companies, OMCs, and power generation. Index-heavy stocks such as HUBCO, ARL, MARI, OGDC, PPL, and SNGPL closed in the green.
This uptick comes after the S&P Global’s rating upgrade and follows a similar move by Fitch Ratings in April 2025, both of which are expected to reduce external borrowing costs and improve Pakistan’s access to international markets.
Market analysts also expect a 50 basis points rate cut in the upcoming Monetary Policy Committee meeting on Wednesday, July 30, 2025, which is expected to push the policy rate down to 10.5%.
Earlier in the day, the market saw a slight downturn, reflecting a negative sentiment driven by concerns over inflation and the potential depreciation of the rupee due to rising imports. However, investor sentiment revived towards the end of the trading session, helping to bring the index back into positive territory.
Overall, the market showed resilience amid the challenging economic environment, reflecting improved investor confidence following the credit rating upgrade and expectations of further monetary easing.
