The Pakistan Stock Exchange (PSX) extended its record-breaking rally on Friday, with the KSE-100 Index surpassing the 120,000 mark for the first time in history. Investors continued to buy aggressively following the government’s decision to slash electricity tariffs, pushing the index up nearly 1,700 points in early trading. By noon, it stood at 119,730.91, reflecting a gain of 792.80 points or 0.67%.
The surge came after Prime Minister Shehbaz Sharif announced a reduction in power rates by Rs7.41 per unit for residential consumers and Rs7.69 per unit for industrial users. The move, which he said was secured after extensive negotiations with the IMF, was welcomed by businesses and traders as a sign of economic relief. Shehbaz also hinted at further reductions if financial conditions allowed. Investors responded positively, driving gains in sectors including cement, banking, and oil, with index heavyweights such as MARI, PPL, HBL, and UBL leading the charge.
“Despite falling global markets, PSX crosses 120k to a new high amid expectations of better earnings after the government cut power rates and promises to resolve circular debt,” said Mohammed Sohail, CEO of Topline Securities.
On Thursday, the PSX staged a strong comeback as the benchmark KSE-100 closed at an all-time high of 118,938.
Despite PSX’s optimism, global markets remained under pressure as fears of a worldwide recession intensified. US President Donald Trump’s sweeping trade tariffs continued to rattle investors, with the S&P 500 and Nasdaq sinking over 4% and 5% respectively.
Tech giants such as Apple, Amazon, and Nvidia bore the brunt of the losses, while oil prices slumped more than 6%. The latest wave of tariffs, which include a baseline 10% levy on imports and severe penalties on key trading partners, has heightened concerns of inflationary pressures and an economic slowdown. Investors fled to safe-haven assets, pushing bond yields lower and driving up the yen, as uncertainty loomed over global financial stability.