PSX Rallies in fresh high in power cuts

The stock market expanded its record on Friday, fueled by a positive investment feeling above the government’s electricity relief package, the fall of inflation and the optimism surrounding the IMF International Monetary Fund program.

The Pakistani Stock Exchange (PSX) reference index increased to an intra-business high of 120,796.67, earning 1,858.56 points or 1.56%. The low of the day was recorded at 119,085.73, while the market was firmly opened to the green, extending Thursday’s strong profits after EID.

“The market made a new high yesterday at the back of the electricity cuts and a permanent plan to resolve circular debt.

“This was again in combination with low inflation of multiple decades and expectations for IMF receiving. The market leads to new highs.”

The convenient momentum has led to the announcement of Thursday by Prime Minister Shehbaz Sharif, who reduced power invoices by up to RS7.69 per unit for domestic consumers and RS7.59 for industrial units.

The prime minister described the key step to facilitate the financial burden of households and to enhance industrial competitiveness. The move followed the IMF approval, which had previously cleared a decrease in RE1 per kilo was the rates of utility in the context of the EXTENDED FUND (EFF) of $ 7 billion.

In a further impulse of emotion, inflation data released by Pakistan Statistics (PBS) showed that consumer price inflation (CPI) increased by only 0.7% on a year in March 2025, from 1.5% in February and dramatically below 20%.

Arif Habib Limited (AHL) analysts described it as the lowest inflation reading since December 1965. On the basis of the month, the CPC increased by 0.9% in March, compared to a 0.8% decrease in the previous month.

The average inflation of the CPC for the first nine months of the financial year (9MFY25) now stands at 5.25%, compared to 27.06% in 9MFY24, significantly enhancing the expectations of further financial relaxation by the Pakistani State Bank (SBP).

The market had already set a provocative tone on Thursday, the first trade meeting after the long EID holiday. The KSE-100 index increased by 1,131.36 points, or 0.96%, to close at 118,938.11, from 117,806.75. The index touched high 119,179.46 and low 117,508.07 during the meeting.