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KSE-100 Soars 1,009 Points Amid Optimism Over IMF Review & Moody’s Positive Outlook
Pakistan’s stock market surged as the KSE-100 index gained over 1,009 points, fueled by optimism surrounding the IMF review and Moody’s upgraded banking outlook. Experts believe improving macroeconomic conditions and banking sector resilience are driving investor confidence.
ND
by News Desk
2025-03-13
KSE-100 Soars 1,009 Points Amid Optimism Over IMF Review & Moody’s Positive Outlook

Pakistan’s stock market witnessed a strong bullish trend today, with the benchmark KSE-100 index gaining 1,009.70 points, or 0.89%, closing at 115,094.23 points. This significant rebound comes after a series of negative sessions and reflects growing investor confidence in the country’s economic outlook.

 

Factors Driving the Market Rally

1. IMF Review & Circular Debt Resolution:

Mohammed Sohail, CEO of Topline Securities, highlighted that investor sentiment improved amid expectations that the ongoing International Monetary Fund (IMF) review would proceed smoothly. He added that discussions about resolving the circular debt issue with bank support have further strengthened market confidence.

 

2. Moody’s Upgrades Pakistan’s Banking Outlook:

Global credit rating agency Moody’s has revised Pakistan’s banking outlook from stable to positive. According to the agency, this decision reflects the banking sector’s resilience and improving macroeconomic conditions compared to last year’s weaker levels.

 

“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,” said Moody’s in its statement.

 

Despite concerns over limited private-sector lending, banks have continued to generate substantial profits, largely due to aggressive government borrowing at high-interest rates throughout FY24.

 

3. Rebound After Recent Losses:

Prior to today’s rally, the KSE-100 had faced three consecutive losing sessions, primarily driven by concerns over economic instability following a 23% hike in gas tariffs for captive power plants (CPPs). The increased costs are expected to impact industries, particularly the export-oriented textile sector. However, the latest developments have shifted market sentiment, restoring investor confidence.

 

Looking Ahead

As Pakistan continues negotiations with the IMF and addresses key economic challenges, investors will closely watch upcoming policy decisions and global market trends. While the bullish momentum is encouraging, experts caution that economic fundamentals and future government measures will determine the market’s long-term trajectory.

 

Will this upward trend sustain, or will external pressures pull the market back down? Investors remain hopeful but vigilant.
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IMF

KSE100

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Moody’s
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