Stock prices for the PSX rise in response to an upgrade in Pakistan's credit rating.
The Pakistan Stock Exchange (PSX) opened on a positive note on Friday, July 25, 2025, following a significant boost in market confidence due to S&P Global's upgrade of Pakistan's sovereign credit rating from 'CCC+' to 'B-' with a stable outlook. This upgrade reflected stabilizing finances and foreign reserves, providing a much-needed confidence booster for the market [1].
The credit rating improvement helped lift major sectors such as automobile assemblers, commercial banks, oil and gas exploration companies, oil marketing companies (OMCs), and power generation firms. Key stocks like HUBCO, ARL, MARI, OGDC, PPL, and SNGPL saw gains as a result [1]. This sentiment was reinforced by a prior upgrade from Fitch Ratings and expectations of a 50 basis points monetary policy rate cut, further contributing to confidence in Pakistan’s economic outlook, reduced external borrowing costs, and improved access to international capital markets [1][3].
Despite earlier hesitation due to concerns about inflation and potential rupee depreciation linked to rising imports, the positive impact of the S&P credit rating upgrade revived investor sentiment. The PSX closed higher by 514.62 points (0.37%) at 139,207.28 points [1][4].
The S&P upgrade is expected to enhance investor confidence and improve Pakistan's prospects of re-entering international bond markets. The benchmark KSE-100 Index gained over 500 points during the first half of the trading session on Friday, representing a 0.36% growth [1]. Index-heavy stocks including HUBCO, ARL, MARI, OGDC, PPL, and SNGPL traded in the green [1].
In other market news, the tech-heavy Nasdaq marked a record high, while Japan's broad Topix index pulled back 0.7% after reaching an all-time high over the previous two sessions. S&P Global raised Pakistan's sovereign credit rating to 'B-' and placed it on a 'stable' outlook [1]. US S&P 500 futures added 0.2%, after the cash index edged up slightly to a new record closing high overnight [1].
At 12pm, the benchmark index was hovering at 139,198.42 level. Hong Kong's Hang Seng lost 0.5%, while Asian shares eased from highs on Friday. Mainland Chinese blue chips declined 0.2%, and benchmark Japanese government bond yields are hovering just below their highest since 2008. The Nikkei slipped 0.5% from its one-year high [1]. Australia's equity benchmark declined 0.5%.
This update is for the intra-day market performance. MSCI’s gauge of stocks across the globe edged down 0.1%, remaining just below its all-time peak from Thursday. The role of S&P Global's upgrade was crucial as it signaled improving economic fundamentals, boosting market confidence, and encouraging investment, which led the PSX to open and close positively on that day [1][3].
[1]: [Source Link 1] [2]: [Source Link 2] [3]: [Source Link 3] [4]: [Source Link 4]
- The PSX's positive performance on July 25, 2025, was largely due to a boost in market confidence following S&P Global's upgrade of Pakistan's sovereign credit rating, which stimulated gains in sectors like automobile assemblers, commercial banks, oil and gas exploration companies, and power generation firms.
- Key stocks such as HUBCO, ARL, MARI, OGDC, PPL, and SNGPL experienced gains as a result of the credit rating improvement and the expectation of a 50 basis points monetary policy rate cut.
- The S&P upgrade is presumed to augment investor confidence and enhance Pakistan's prospects of re-entering international bond markets, as the benchmark KSE-100 Index gained over 500 points during the first half of the trading session.
- Despite earlier hesitation due to inflation and potential rupee depreciation concerns, the positive impact of the S&P credit rating upgrade revived investor sentiment, further indicating a positive outlook for Pakistan's finance, industry, and business sectors.
