The Pakistan Stock Exchange (PSX) continued its upward trajectory on Friday, with the benchmark KSE-100 index rising by 515 points (0.37%) to close at 139,207. Investor sentiment was bolstered by expectations of a potential interest rate cut in the upcoming monetary policy announcement on July 30, along with a sovereign credit rating upgrade by Standard & Poor’s (S&P). Analysts attributed the rally to easing inflation and declining oil prices, which have fueled hopes of monetary easing.
Global ratings agency S&P upgraded Pakistan’s sovereign credit rating to ‘B-’ with a stable outlook, citing sustained engagement with the International Monetary Fund (IMF) and improving fiscal indicators. The upgrade also boosted Pakistan’s long-dated bonds in international markets. Heavyweight stocks such as ENGRO, UBL, LUCK, MEBL, and NBP contributed a combined 492 points to the index, offsetting losses in HBL, ABL, MCB, PSEL, and SRVI.
Trading volumes dipped slightly, with 633.3 million shares traded worth Rs. 24.5 billion. Bank of Punjab (BOP) led the volume chart with 50.2 million shares changing hands. The KSE-100 recorded its fifth consecutive weekly gain, rising 610 points (0.44%) after fluctuating between an intraweek high of 140,202 and a low of 138,150.
Analysts expect the bullish momentum to persist, with 137,000 acting as a crucial support level. A drop below this could see the index testing 135,000, where attractive valuations and potential monetary easing may reignite investor interest. Market participants remain optimistic, anticipating further gains if the central bank cuts rates as expected.