KARACHI: The Pakistan Stock Exchange (PSX) bounced back strongly on Thursday, with the benchmark KSE-100 index closing at a record high of 118,938. The day started with concerns over U.S. President Donald Trump’s sweeping tariffs on over 180 countries, which led to initial selling pressure, pushing the index to an intra-day low of 117,508.07.
However, the mood shifted after the Pakistani government announced a significant reduction in electricity tariffs, which sparked optimism among investors. Prime Minister Shehbaz Sharif revealed that electricity rates for residential consumers would be reduced by Rs7.41 per unit, bringing the rate down to Rs34.37 per unit. Commercial users would also benefit from a Rs7.59 per unit reduction. This announcement sent the index soaring, reaching an intra-day high of 119,179.45, before settling at 118,938.11, up by 1,131.37 points or 0.96%.
The earlier part of the session had been affected by concerns over the potential impact of Trump’s tariffs, which included a 29% reciprocal tariff on Pakistan. These tariffs were seen as part of a broader escalation in the U.S.-China trade war, sparking anger from U.S. allies and threatening to disrupt global markets. Despite these global fears, the positive news of the electricity rate cut in Pakistan brought much-needed relief to investors, reversing some of the day’s losses.
Last week, the KSE-100 had closed in negative territory due to profit-taking, with the index declining by 635 points, or 0.05%, to settle at 117,807 points. International markets were also affected by Trump’s tariffs, with stocks falling sharply and investors fleeing to safe-haven assets like bonds, gold, and the yen.
The U.S. tariffs have raised fears of a global recession, with markets reacting negatively, particularly in Asia and Europe. Despite these international concerns, the electricity tariff reduction in Pakistan provided a much-needed boost to the local market.
