Pakistan’s stock market surged to an all-time high on Thursday, with the KSE-100 index closing at 118,938.11 points, up 1,131.37 points or 0.96%, as investors brushed off concerns over U.S. President Donald Trump’s sweeping new tariffs. The rally came after an initial dip when trading resumed post-Eid, with the index falling to an intraday low of 117,508.07 as investors assessed the impact of Trump’s 10% blanket tariffs on global imports, including a 29% levy on Pakistani goods. However, sentiment shifted sharply after the government announced a significant reduction in electricity tariffs, driving the index to an intraday high of 119,179.45 before settling near record levels.
Trump’s tariffs, branded as “Liberation Day” trade measures, have sparked global backlash, with Australia calling them “unwarranted” and Italy labelling them “wrong.” The move triggered steep declines in global markets, with the Nasdaq plunging 3.2%, the Nikkei sliding 3%, and European indices following suit. Tech giants bore the brunt of the selloff, with Apple shedding $240 billion in market capitalisation and Nvidia losing $153 billion. Meanwhile, U.S. Treasury yields fell to a five-month low as investors priced in the likelihood of rate cuts despite inflationary risks from the tariffs.
In contrast, the Pakistan Stock Exchange bucked the global trend, fuelled by optimism over the government’s decision to lower electricity rates for residential and commercial users. Prime Minister Shehbaz Sharif announced a Rs7.41 per unit cut for households and Rs7.59 for businesses, citing successful renegotiations with independent power producers and structural reforms in the energy sector. The move is expected to ease industrial costs and enhance economic competitiveness.
Trading volumes were robust, with 201.03 million shares exchanged on the KSE-100. Market leaders included UBL, which surged 8.2%, AGL at 7.94%, and MEHT at 6.59%. On the other hand, KTML, SRVI, and ILP were among the biggest decliners. Sector-wise, commercial banks led the rally, contributing 704.18 points to the index’s gains, followed by cement and oil exploration companies.
The broader All-Share Index gained 608.68 points to close at 73,949.09, with total market turnover reaching Rs28.21 billion. The KSE-100 has now gained 51.62% in the ongoing fiscal year and is up 3.31% in 2025, underscoring investor confidence despite global uncertainties.