Stocks traded within a narrow range on Friday, balancing between gains and minor losses as mutual fund activity and strong corporate earnings kept the market stable. The KSE-100 Index surged to an intraday high of 147,534.41 points, rising by 1,005 points, before retreating slightly to close marginally lower. Analysts described the movement as range-bound, driven by liquidity from mutual funds and ongoing earnings season optimism.
Market sentiment received a further lift after Moody’s upgraded Pakistan’s credit rating from Caa2 to Caa1, citing improvements in external finances and fiscal reforms under the IMF program. This marks the third rating upgrade in four months, following similar moves by S&P and Fitch. However, Moody’s cautioned that debt affordability remains weak, and political risks persist.
Pakistan’s stock market has emerged as a top performer globally, ranking first in USD returns over FY24-FY25 combined. In FY25 alone, it outpaced regional peers, including India and China. The State Bank of Pakistan projects GDP growth at 3.25-4.25% for FY26, with inflation expected to stabilize as the central bank maintains its policy rate at 11%.
Forex reserves are anticipated to rise to $15.5 billion by December 2025, supported by steady inflows and SBP interventions. Despite a slight mid-week dip, analysts remain optimistic, citing strong earnings and economic reforms as key drivers for sustained market stability in the coming months.
