The Pakistan Stock Exchange (PSX) closed flat on Friday as profit-taking wiped out the earlier gains, with the KSE-100 Index ending at 146,491.63 points, a slight decline of 37.67 points or 0.03%. Despite the dip, the index showed a positive week-on-week increase of +0.76%, largely driven by mutual fund buying.
The Pakistan Stock Exchange (PSX) experienced a flat session on Friday, as profit-taking negated the early gains, resulting in a minor decline in the benchmark KSE-100 Index. The index closed at 146,491.63 points, down by 37.67 points or 0.03% from the previous session’s close of 146,529.30 points.
Despite the flat closing, the PSX saw a week-on-week increase of +0.76%. According to Topline Securities, this rise was primarily attributed to buying activity from mutual funds, although the positive momentum witnessed earlier in the week waned as the session progressed.
The top contributors to the index’s positive movement included EFERT, LUCK, ENGROH, MEBL, and AIRLINK, which collectively added +512 points. On the other hand, stocks such as OGDC, UBL, PPL, HUBC, and MARI weighed down the index, causing a loss of -499 points.
AAH Soomro, an independent investment and economic analyst, noted that the market’s current trend is largely range-bound, driven by mutual fund liquidity and the ongoing earnings season. The impact of Moody’s recent credit rating upgrade of Pakistan, which raised its rating from Caa2 to Caa1, had already been priced in by the market, Soomro added.
Moody’s credit rating upgrade came in response to Pakistan’s improved external position and progress on reforms under the IMF’s Extended Fund Facility (EFF). However, the agency warned that Pakistan’s debt affordability remains among the weakest globally, and political and governance uncertainties continue to pose challenges.
Additionally, Pakistan’s equity markets continued to shine globally, with Bloomberg data showing that the country topped global equity returns in USD for the FY24–FY25 period. In FY25 alone, Pakistan ranked eighth globally, outperforming major regional peers like India and China.
On the macroeconomic front, the State Bank of Pakistan (SBP) projected GDP growth between 3.25% and 4.25% for FY26, with the current account deficit expected to remain between zero and 1.0% of GDP. The SBP also expects reserves to reach $15.5 billion by the end of December 2025, supported by ongoing financial inflows and foreign exchange purchases.
