Monday, July 28, 2025

Creating liberating content

Nick Hogan speaks out...

Your support helps us to tell the storyFrom reproductive rights to climate change...

Government raises maximum guaranteed...

The government has increased the maximum price it is prepared to guarantee companies...
HomeBusiness & FinancePSX rallies to...

PSX rallies to fresh high on power price cuts

The stock market extended its record-breaking streak on Friday, fuelled by positive investor sentiment over the government’s electricity relief package, falling inflation, and optimism surrounding the International Monetary Fund (IMF) programme.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index surged to an intraday high of 120,796.67, gaining 1,858.56 points, or 1.56%. The day’s low was recorded at 119,085.73, while the market opened firmly in the green, extending Thursday’s strong post-Eid gains.

“The market made a new high yesterday on the back of electricity cuts and a permanent plan to resolve circular debt. This gave the market a shot of confidence,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities.

“This was again coupled with a multi-decade low on inflation, and expectations of receiving the IMF tranche is driving the market to new highs.”

The bullish momentum has been driven by Thursday’s announcement by Prime Minister Shehbaz Sharif, who slashed power tariffs by up to Rs7.69 per unit for domestic consumers and Rs7.59 for industrial units.

The premier termed it a key step to ease economic burden on households and boost industrial competitiveness. The move followed approval from the IMF, which had earlier cleared a Re1 per kilowatt reduction in utility rates under its $7 billion Extended Fund Facility (EFF).

In a further boost to sentiment, inflation data released by the Pakistan Bureau of Statistics (PBS) showed Consumer Price Index (CPI) inflation rose only 0.7% year-on-year in March 2025, down from 1.5% in February and dramatically lower than the 20.7% recorded in March 2024.

Analysts at Arif Habib Limited (AHL) described it as the lowest inflation reading since December 1965. On a month-on-month basis, CPI rose by 0.9% in March, compared to a 0.8% decline in the previous month.

The average CPI inflation for the first nine months of the fiscal year (9MFY25) now stands at 5.25%, compared to 27.06% in 9MFY24, significantly strengthening expectations for further monetary easing by the State Bank of Pakistan (SBP).

The market had already set a bullish tone on Thursday, the first trading session after the long Eid holidays. The KSE-100 Index surged by 1,131.36 points, or 0.96%, to close at 118,938.11, up from 117,806.75. The index touched a high of 119,179.46 and a low of 117,508.07 during the session.

Continue reading

Sopranos’ Joe Pantoliano says his dogs saved him amid mental health issues

Joe Pantoliano is opening up about his battle with mental health...

Nick Hogan speaks out to honor ‘greatest dad in the world’ days after Hulk’s death

Your support helps us to tell the storyFrom reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing...