PSX hits record high after power tariff cut

The Pakistan Stock Exchange (PSX) experienced a rollercoaster ride on Friday with the KSE-100 Index breaching the 120,000 points barrier for the first time before sliding down again to close at 146 points lower than the previous day's closing.

The market initially saw strong gains, with the benchmark KSE-100 index rising by 1,729.48 points, or 1.45%, to reach an all-time high of 120,667.59 points.

However, the index reversed its earlier gains and closed in the red. It dropped by 146.45 points, or 0.12%, closed at 118,791.66 from previous close of 118,938.11 points

Trading volume for the day stood at 313,266,903, with a total value of 27,776,791,654.

The KSE-100 index reached an all-time high during intraday trading after Prime Minister Shehbaz Sharif announced a 15% cut in electricity tariffs, reducing prices by Rs7.41 per unit, aimed at easing the financial burden on families and boosting national grid consumption.

The reduction, benefiting around 40.3 million consumers, primarily residential users, was achieved through seasonal tariff adjustments, a budget-neutral subsidy increase, and tax reductions.

The new average electricity rate for domestic consumers will be Rs34.37 per unit, while industrial rates have been lowered to Rs40.51 per unit.

The government successfully negotiated with the International Monetary Fund (IMF) to approve this price reduction, despite initial resistance.

The maximum relief of 12% has been granted to commercial consumers, while industrial users benefit from a 13% reduction.

The new rates also introduce significant cuts for protected residential consumers, with reductions of up to 32% depending on usage.