The Pakistan Stock Exchange (PSX) scaled new heights on Wednesday, with the benchmark KSE-100 Index touching an intraday peak of 137,232.10 points—up 1,292 points (0.95%)—before closing lower due to profit-taking. Investors reacted to robust corporate earnings and growing optimism over a potential credit rating upgrade by Moody’s, following high-level government engagements.
Economic Reforms Take Center Stage
Federal Finance Minister Muhammad Aurangzeb held a virtual meeting with Moody’s, presenting Pakistan’s macroeconomic recovery—including declining inflation, monetary easing, and forex reserves surpassing $14 billion. Aurangzeb emphasized structural reforms like SOE privatization and fiscal discipline, addressing Moody’s queries to reinforce Pakistan’s reform credibility.
Banking Sector Leads Growth
The State Bank of Pakistan (SBP) reported 14.1% YoY growth in bank deposits (Rs35.5T), fueled by remittances and a shift from informal savings. Advances rose 8.7% (Rs13.52T), while investments jumped 21.2% (Rs36.57T). Analysts attribute this to improving economic confidence and lower inflation-driven cash hoarding.
Market Volatility Persists
Despite the rally, the KSE-100 closed 0.41% lower on Tuesday at 135,939.87, reflecting investor caution. Analysts suggest the market’s direction hinges on Moody’s decision, ongoing reforms, and global economic trends. With earnings season in full swing, traders remain watchful for further cues.