Bulls continued their stampede on the trade floor on Friday as shares at the Pakistan Stock Exchange (PSX) surged more than 1,800 points in an all-time high in intraday trade.

The benchmark KSE-100 index surged 1,855.30, or 1.56 per cent, to stand at 120,793.41 from the previous close of 118,938.11 at 9:59am.

However, by the end of the session, the index reversed its gains and traded in the red. The index declined by 146.45 points, or 0.12pc, to close at 118,938.11.

Mohammed Sohail, chief executive of Topline Securities, told Dawn.com that despite falling global markets, the index crossed the 120,000 barrier in intraday trade “amid expectations of better earnings after government cut power rates” as well as the promise to resolve circular debt.

Topline Securities Ltd said that optimism could be attributed to yesterday`s announcement related to cuts in electricity tariffs.

It said that investor interest was observed in the banking sector, as it cumulatively contributed 1,020 points to the index.

“Top negative contribution to the index came from ENGROH, OGDC, HUBC, MARI and PPL, as they cumulatively contributed 778 points to the index,” it said.

“Traded volume and value for the day stood at 547mn shares and PKR.35.4bn respectively,” it added.

Yousuf M. Farooq, director research at Chase Securities, noted that the market had largely shrugged off US-imposed tariffs and instead celebrated the decline in electricity prices.

Yesterday, Prime Minister Shehbaz Sharif announced a Rs7.41 per unit cut in power rates across the country in a “major” relief package to reduce the burden on citizens facing exorbitant electricity bills.

For industries, he declared that electricity prices would be cut by Rs7.69.

Farooq said: “Additionally, lower crude and coal prices have further buoyed sentiment around equities”, adding that inflation expectations had eased further in response to falling energy costs.

“As these expectations decline, the market is likely to anticipate a gradual re-rating driven by the potential for lower interest rates in the future,” he highlighted.

Regarding US tariffs, he noted, “While Pakistan is not as directly exposed to the US as other countries, it remains important to monitor the second-round effects of these tariffs — particularly the potential slowdown in key trading partners and a possible dip in remittance inflows.”

US President Donald Trump on Thursday

© Dawn Business