The Pakistan Stock Exchange (PSX) closed on a strong note on Monday, with the benchmark KSE-100 Index rising by 1,704.79 points or 1.16%, to reach 148,196.42.
Investor sentiment remained upbeat throughout the day, driven by positive developments, including the recent upgrade of Pakistan’s sovereign credit rating by Moody’s and a continued stream of robust corporate earnings. The index gained over 1,500 points during intra-day trading, reaching a peak of 148,003.52 at 3:10 PM, reflecting an increase of 1,511.89 points or 1.03%.
Key sectors such as cement, commercial banks, fertilizers, oil and gas exploration companies, oil marketing companies (OMCs), and power generation saw significant buying interest, with index-heavy stocks like HUBCO, SNGPL, SSGC, MARI, OGDC, PPL, POL, MEBL, and UBL all trading in the green.
“Strong corporate results, along with expectations of lower interest rates, are driving the market’s performance,” said Samiullah Tariq, Head of Research at Pak Kuwait Investment Company Limited.
Liquidity conditions appeared strong as funds shifted from fixed income and money market instruments to equities, further fueling the market’s upward momentum.
A major catalyst for the positive market sentiment was Moody’s decision to upgrade Pakistan’s sovereign credit rating to Caa1 from Caa2 and changing the outlook to stable. The rating agency cited Pakistan’s improving external buffers, fiscal consolidation, and progress under the IMF program as key factors driving the upgrade.
This credit rating boost, combined with favorable corporate earnings reports, continued to uplift market morale. Last week, the PSX had reached an all-time intraday high of 147,534 points before closing at 146,492, up 1,109 points or 0.8% from the previous week.
