By Ali Imran
ISLAMABAD: The stock market rallied on Thursday, closing with a substantial gain as investors responded positively to optimism surrounding the resolution of circular debt in the energy sector and an upgrade of Pakistani banks by Moody’s Ratings.
The market was further buoyed by hopes of a favorable outcome from the ongoing International Monetary Fund (IMF) review.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index surged by 1,009.70 points, or 0.89%, to close at 115,094.23 points, marking a continued upward trajectory.
The index hit an intraday high of 115,247.39, while the lowest level of the session was recorded at 114,429.93, with investors showing increased buying interest amid positive economic developments.
“Markets are up based on a rally in energy stocks due to the potential solution of circular debt and the upgrade of Pakistani banks by Moody’s,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities.
“Both these factors and the hope for a positive IMF negotiation are keeping the sentiments positive and encouraging investors to buy,” he added.
Moody’s Ratings upgraded its outlook on Pakistan’s banking sector to positive, citing improved macroeconomic conditions and the sector’s resilience in financial performance. This shift aligns with the government’s improved outlook, as banks hold significant exposure to sovereign debt.
“We have changed our outlook on Pakistan’s banking system to positive from stable to reflect the banks’ resilient financial performance as well as improving macroeconomic conditions from very weak levels a year ago,” Moody’s said. The agency projects Pakistan’s economy to grow by 3% in 2025, following a 2.5% growth rate in 2024 and a contraction of 0.2% in 2023.
Meanwhile, Pakistan’s workers’ remittances continued their strong upward trend, rising 38.6% year-on-year to $3.1 billion in February 2025, up from $2.2 billion in the same month last year, according to the State Bank of Pakistan (SBP).
