PSX remains steady amid earnings season, economic optimism

(Web Desk): The Pakistan Stock Exchange (PSX) remained range-bound on Friday, supported by mutual fund activity, strong corporate earnings, and growing optimism over Pakistan’s economic outlook.

The benchmark KSE-100 Index climbed as high as 147,534.41, gaining 1,005.11 points (0.69%), before retreating to an intraday low of 146,894.62, down 35.22 points (0.02%), reflecting a tight trading range.

According to investment analyst AAH Soomro, the market is currently witnessing “range-bound activity” driven by mutual fund liquidity and corporate earnings. He added that Moody’s recent credit rating upgrade has already been priced in.

Earlier this week, Moody’s Investors Service upgraded Pakistan’s credit rating from Caa2 to Caa1, citing improved external conditions and progress under the IMF’s Extended Fund Facility (EFF). The agency said Pakistan's foreign exchange reserves are expected to rise, contingent on continued official financing, while tax reforms are aiding fiscal consolidation. However, Moody’s warned that debt affordability remains weak, and political and governance risks continue to weigh on investor confidence.

The credit upgrade is the third in four months, following similar actions by S&P Global Ratings and Fitch Ratings, reflecting the government's commitment to reforms and fiscal discipline under Prime Minister Shehbaz Sharif’s leadership.

In terms of performance, Bloomberg data revealed that Pakistan ranked first globally for equity returns in USD over the FY24–FY25 period. For FY25 alone, Pakistan secured the eighth position globally, outpacing regional markets such as India’s BSE Sensex (+3.2%), China (+14.8%), and India’s broader market (+6%), as per AHL data.

Earlier this week, the KSE-100 declined by 476 points (0.32%), closing at 146,529.31, down from 147,005.32 in the previous session.