KSE-100 crosses 147,000 as Moody's upgrade improves investor mood
At 9:40am, the benchmark index was hovering at 147,290.11 level, an increase of 760.81 points or 0.52%.
Buying interest was seen in key sectors including automobile assemblers, commercial banks, fertilizer, oil and gas exploration companies, OMCs and refinery. Index-heavy stocks including ARL, NRL, OGDC, POL, PPL, PSO, MCB, MEBL and NBP traded in the green.
Analysts attributed the buying rally to improvement in investor sentiments after Moody's on Wednesday upgraded the government of Pakistan's local and foreign currency issuer and senior unsecured debt ratings to Caa1 from Caa2.
The global rating agency also upgraded the rating for the senior unsecured MTN programme to (P)Caa1 from (P)Caa2 and concurrently changed the outlook for the government of Pakistan to stable from positive.
Leading business organisations in the country, including the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), the Businessmen Forum, and the North Karachi Association of Trade and Industry (NKATI), have welcomed Moody's decision, calling it a highly positive development for the country's economic future.
On Wednesday, PSX experienced a session of mild profit-taking, as bears took control amid concerns over a surge in the trade deficit and unmet IMF conditions for provincial tax collection.
The KSE-100 Index closed at 146,529.31 points, a decrease of 476.02 points or 0.32%.
The stock market was closed on Thursday, i.e. 14th August, on account of a public holiday.
Globally, Asian stocks made an uneven recovery as higher-than-expected producer price inflation dampened expectations of a jumbo rate cut at the Federal Reserve's September meeting, while US bonds and equity futures stabilised.
MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.3% after a report on Thursday from the Bureau of Labor Statistics, which showed the Producer Price Index increased 0.9% in July on a month-over-month basis, well above economists' expectations.
The market is currently pricing in a 92.1% probability of a 25 basis point rate cut at its September meeting, compared with a 100% likelihood of a cut on Thursday, according to the CME Group's FedWatch tool. The chance of a jumbo 50 basis point cut fell to 0% from an earlier expectation of 5.7% a day ago.
This is an intra-day update
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