PSX Soars Past 120,000 Mark as Power Tariff Cuts Spark Investor Frenzy

The Pakistan Stock Exchange (PSX) kept up its explosive momentum on Friday as the KSE-100 Index smashed past the 120,000 mark for the first time ever. Investor enthusiasm remained high after the government’s announcement of a massive electricity tariff cut, sending the index soaring nearly 1,700 points during early hours. By midday, the benchmark stood at 119,730.91, reflecting a gain of 792.80 points, or 0.67%.

The rally was fueled by Prime Minister Shehbaz Sharif’s power rate cuts — Rs7.41 per unit for households and Rs7.69 for industries — which came after tough negotiations with the IMF. The announcement was met with cheer from the business community, who saw it as a major move toward easing cost pressures. Shehbaz even hinted that if finances allow, more relief could follow. The optimism lit up key sectors like cement, oil, and banking, with big players like MARI, PPL, HBL, and UBL leading the gains.

Mohammed Sohail, CEO of Topline Securities, summed it up by saying that despite pressure on global markets, PSX hit an all-time high on expectations of better earnings following the tariff cuts and government moves to fix circular debt.

Just a day earlier, the market had already made headlines by closing at a record 118,938, but Friday took it even higher.

Meanwhile, things weren’t so bright globally. Stock markets across the world took a beating over recession fears, worsened by US President Donald Trump’s aggressive trade tariffs. The S&P 500 and Nasdaq plunged over 4% and 5%, with major tech companies like Apple, Amazon, and Nvidia suffering steep losses. Oil prices also dropped more than 6%.

The sweeping tariffs — starting with a baseline 10% tax on imports and harsher penalties on certain trade partners — triggered fears of inflation and economic slowdown. Investors globally rushed toward safer assets, causing bond yields to drop and currencies like the Japanese yen to surge, as market uncertainty spiked.