ISLAMABAD: The Pakistan Stock Exchange (PSX) reached an all-time high on Thursday, with the benchmark KSE-100 Index surging by 1,131.37 points, or 0.96%, to close at 118,938.11 points.
The rally was fuelled by Prime Minister Shehbaz Sharif’s announcement of a significant reduction in electricity tariffs for both domestic and industrial consumers.
The KSE-100 index had started the day with some volatility, dipping to an intra-day low of 117,508.07 points amid global market uncertainty.
However, the mood turned bullish after the announcement of the power relief package, which prompted a swift market recovery.
The index surged to an intraday high of 119,179.45 points, marking an increase of 1,372.71 points, or 1.17%, before settling at the record-breaking 118,938.11 points.
Prime Minister Shehbaz Sharif, addressing a special event in Islamabad, announced that electricity tariffs for domestic consumers would be reduced by Rs7.41 per unit, bringing the rate down to Rs34 per unit.
Industrial users would see a similar reduction of Rs7.59 per unit. This power tariff cut is part of the government’s strategy to ease inflationary pressures and stimulate economic growth.
In addition to the tariff cuts, the government had already been in talks with the National Electric Power Regulatory Authority (NEPRA) and the International Monetary Fund (IMF) for the approval of a reduction in power prices.
Market experts pointed to the reduction in electricity tariffs as a key driver for the surge in the stock market.
Topline Securities Ltd highlighted that the market’s strong performance was largely attributed to the positive impact of the tariff cut, which boosted investor sentiment.
Key stocks contributing to the rally included United Bank Limited (UBL), Meezan Bank (MEBL), Mari Petroleum (MARI), Lucky Cement (LUCK), and Oil & Gas Development Company (OGDC). These stocks collectively added 839 points to the index.
The market saw significant trading activity, with a total of 415 million shares traded, amounting to a turnover of Rs28 billion. Sui Southern Gas Company (SSGC) led the trading volume, with 53 million shares changing hands.
The stock market’s performance also follows a period of relative calm, where trading was subdued following the Eid holidays.
Last Friday, the KSE-100 index closed marginally higher by 34.43 points, or 0.03%, at 117,806.74 points.
Despite initial concerns about global trade disruptions, particularly after US President Donald Trump’s announcement of new tariffs on several key trading partners, including China, Pakistan, Japan, India and the European Union, the reduction in electricity prices restored confidence in the market.
The announcement of the power relief package was welcomed by investors, who had previously expressed concerns about the economic impact of reciprocal tariffs, including a 29% tariff imposed on Pakistan.
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