Mutual funds liquidity is rerating the market. Plenty of cash taking medium term view: analyst
\nkarachi
\nThe equity market extended its gains on Tuesday, crossing the 150,000 mark for the first time ever, with investors buoyed by improved economic forecasts and optimism over reforms in the energy sector.
\nThe Pakistan Stock Exchange\u2019s (PSX) benchmark KSE-100 Index settled at 149,770.74 points, up 1,574.32 points, or 1.06%, from the previous close of 148,196.42.
\nThe index climbed to an intraday high of 150,323.38, gaining 2,126.96 points, or 1.44%, The low for the session was recorded at 148,293.94, reflecting a rise of 97.52 points, or 0.07%.
\n\u201cMutual funds liquidity is rerating the market. Plenty of cash taking medium term view. Valuations are not cheap anymore,\u201d said AAH Soomro, an independent investment and economic analyst.
\nIn a boost to sentiment, global credit rating agency Fitch projected Pakistan\u2019s real GDP growth to reach 3.5% by 2027, up from 2.5% in 2024, citing improving fiscal performance, reforms, and ongoing recovery.
\n\u201cPakistan\u2019s improved sovereign credit profile reinforces this view,\u201d Fitch noted, referring to its upgrade of the country\u2019s Long-Term Issuer Default Rating (IDR) to \u2018B-\u2019\/Stable from \u2018CCC+\u2019 in April 2025.
\nThe improvement followed Moody\u2019s upgrade of Pakistan\u2019s credit rating by one notch, from \u2018Caa2\u2019 to \u2018Caa1\u2019, with a \u2018stable\u2019 outlook.
\nSeparately, the government\u2019s Task Force on Power unveiled a plan to reduce the country\u2019s mounting gas circular debt, which has risen to Rs2,600 billion.
\nThe proposed five-year strategy includes three measures: imposing a Rs5 per litre petroleum levy expected to raise Rs500 billion; generating another Rs500 billion through dividends from state-owned oil and gas companies; and diverting two LNG cargoes per month from Qatar to international markets to earn Rs500 billion annually.
\nA senior Petroleum Division official said the plan would cut the gas circular debt by Rs1,500 billion, while the remaining Rs1,100 billion \u2014 largely comprising surcharges and interest \u2014 is expected to be resolved through waivers.
\nOn Monday, the PSX benchmark KSE-100 Index settled at 148,196.42 points, up 1,704.79 points, or 1.16%, from the previous close of 146,491.63. During the session, it reached a high of 148,395.71, up 1,904.08 points, or 1.3%, and a low of 146,403.64, down 87.99 points, or 0.06%.<\/p>\n","protected":false},"excerpt":{"rendered":"
Mutual funds liquidity is rerating the market. Plenty of cash taking medium term view: analyst karachi The equity market extended its gains on Tuesday, crossing the 150,000 mark for the first time ever, with investors buoyed by improved economic forecasts and optimism over reforms in the energy sector. The Pakistan Stock Exchange\u2019s (PSX) benchmark KSE-100 …<\/p>\n","protected":false},"author":4,"featured_media":59881,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-85603","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/posts\/85603","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/comments?post=85603"}],"version-history":[{"count":1,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/posts\/85603\/revisions"}],"predecessor-version":[{"id":85612,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/posts\/85603\/revisions\/85612"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/media\/59881"}],"wp:attachment":[{"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/media?parent=85603"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/categories?post=85603"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/tags?post=85603"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}