KARACHI: In contrast to the decline seen in global markets following the sweeping reciprocal tariffs imposed by US President Donald Trump, the Pakistan Stock Exchange (PSX) experienced a rally in the first trading session after Eidul Fitr.
Despite a negative start, the market closed at a record high on Thursday, thanks to mid-session value hunting supported by a few positive factors, particularly the relief in the power prices, which encouraged investors to strengthen their positions across the board.
Topline Securities Ltd said the KSE-100 index reached a historic peak of 118,938, gaining 1,131 points or 0.96 per cent. The local stock market showed robust performance, with the benchmark index climbing by as much as 1,373 points. This surge was driven by the government’s decision to lower electricity tariffs for domestic and industrial consumers, thereby boosting market sentiment.
The market’s gains were primarily fuelled by strong performances from United Bank Ltd, Meezan Bank, Mari Energies, Lucky Cement, and Oil and Gas Development Company, which collectively added 839 points to the index.
Ahsan Mehanti of Arif Habib Corporation said the market closed at a record high after the prime minister announced power tariff cuts for the domestic and industrial sectors, and upbeat CPI inflation data stood at 0.7pc year-on-year in March, likely to further ease the interest rate.
However, worries over 29pc massive US reciprocal tariff on Pakistan and global equity selloff invited early session pressure. Institutional support for the IMF deal and approval of the government plan to reduce circular debt by Rs1.5tr circular debt lifted investor confidence.
Ali Najib, Head of Sales at Insight Securities, said April started the trading affairs on a lacklustre note due to the reciprocal tariffs on exports from Pakistan to the US, and investors opted to stay on the sidelines initially.
However, the anticipated announcement about a reduction in power tariffs attracted value hunters at a low of 117,508. Consequently, the market recovered its earlier losses and entered the green zone.
The announcement of Rs7.41 and Rs7.59 cuts for household and industrial power consumers provided impetus to the bullish momentum, ultimately leading the benchmark index to close the business by adding over 1,100 points.Published in Dawn, April 4th, 2025