ISLAMABAD: The Pakistan Stock Exchange (PSX) hit an all-time high during intraday trade on Friday but closed slightly lower as investors opted for profit-taking ahead of the weekend.
The benchmark KSE-100 index surged by as much as 1,858.56 points to a record 120,796.67 during the morning session. However, the index later pared gains and ended the day at 118,791.66 points, down 146.45 points, or 0.12 percent, from the previous close of 118,938.11.
Earlier in the day, Prime Minister Shehbaz Sharif attributed the bullish momentum to investor confidence in his government’s economic policies.
“Positive trend in business at the Pakistan Stock Exchange reflects growing confidence of traders and investors in government’s economic policies,” he said in a statement, citing recent economic measures.
“A major reduction in electricity tariffs has been made, which will not only provide relief to domestic consumers, but it is also welcoming for the business community and industries,” he added.
On Thursday, the government announced a cut of more than Rs7 in domestic and industrial power tariffs. The gains also followed a staff-level agreement with the International Monetary Fund (IMF) last week on the first review of Pakistan’s $7 billion loan program.
Ahsan Mehanti, CEO of Arif Habib Corporation, said the tariff relief and a year-on-year drop in the consumer price index to 0.7% in March had raised expectations of an interest rate cut, contributing to the bullish trend.
“Institutional support on the IMF deal and speculations over the government negotiations on [US President Donald] Trump tariff played a catalyst role in bullish activity at the PSX,” he said while explaining the early market bullish sentiment.
Raza Jafri, head of research at Intermarket Securities, noted that Pakistani equities had been performing well since the Eid al-Fitr break, in contrast to global markets, due to local policy developments.
“Domestic developments such as the ongoing IMF program and cut in electricity tariffs seem to hold more importance for Pakistan, which is relatively insulated from global developments and arguably a net beneficiary if the reduction in international oil prices more than offsets the impact on exports,” he said.
Despite the strong start, analysts said the late pullback reflected investor caution heading into the weekend, with many opting to lock in profits after a sharp early rally.
