Electricity tariff relief sparks bullish momentum at PSX

KARACHI: The Pakistan Stock Exchange (PSX) surged by 1,131.37 points (0.96 per cent) in the first session on Thursday after the week-long Eid holidays, closing at an all-time high of 118,938.11, primarily driven by the prime minister’s announcement of a reduction in electricity tariff. 

The benchmark KSE-100 Index closed on a strong note, reaching a new all-time high and gaining momentum throughout the session. The rally was largely fueled by the government’s decision to lower electricity prices for both industrial and residential consumers. 

On Thursday, Prime Minister Shehbaz Sharif announced a reduction in electricity prices for residential consumers by Rs7.59 per unit to Rs34.37 and for industrial users by Rs7.59 per unit to Rs40.60. 

Earlier, the rates for these groups stood at Rs48.70 and Rs58.50 per unit**, respectively. 

“The March inflation rate came in at a modest 0.7 per cent YoY, further boosting investor sentiment,” Ismail Iqbal Securities stated. 

The inflation rate was recorded as the lowest in nearly 59 years. 

However, the textile sector came under pressure due to the impact of reciprocal tariffs imposed by the United States, as textiles remain one of Pakistan’s key exports. 

“The market was driven by the government’s decision to lower electricity tariffs, which provided relief to consumers and industries, thereby boosting sentiment,” Topline Securities noted. 

The market’s gains were primarily fueled by strong performances from UBL, MEBL, MARI, LUCK, and OGDC, which collectively added 839 points to the index. 

A total of **415 million shares were traded, with a turnover of Rs28 billion. SSGC led the trading volume with 53 million shares exchanged. 

The bourse had closed in a lackluster session last Thursday following a rollover week ahead of the Eid holidays, as investors had opted for caution. 

Syed Raza Hassan