The record-breaking rally continued at the Pakistan Stock Exchange (PSX) as investors celebrated the government’s electricity rate cut. The benchmark KSE-100 Index crossed the 120,000 level, a new record high, amid a gain of nearly 1,700 points during the first half of trading on Friday. At 9:50am, the benchmark index was at 120,629.27, a gain of 1,691.16 points or 1.42%. Strong buying interest was observed in key sectors including cement, commercial banks, oil and gas exploration companies, OMCs and refineries. Index-heavy stocks including ARL, NRL, MARI, PPL, DGKC, HBL, MCB, MEBL, NBP and UBL traded in the green. The rally follows the government’s move to provide significant relief to inflation-weary masses. On Thursday, Prime Minister Shehbaz Sharif declared a decrease in electricity prices for residential consumers by Rs7.41 per unit, while the rates for industrial consumers have been lowered by Rs7.69 per unit. He also pledged to further reduce electricity prices as the economy is gradually improving. However, he added that his team had to make hectic efforts to convince the International Monetary Fund (IMF) to lower the rates of electricity to provide relief to the masses. “Despite falling global markets, PSX crosses 120k to a new high amid expectations of better earnings after the government cut power rates and promises to resolve circular debt,” said Mohammed Sohail, CEO of Topline Securities. On Thursday, the PSX staged a strong comeback as the benchmark KSE-100 closed at an all-time high of 118,938. Globally, Japanese stocks sank on Friday to their lowest levels since last August and were set for their sharpest weekly drop in five years, as fears of a global recession in the wake of US President Donald Trump’s sweeping tariffs gripped markets. The Nikkei index was down 3.6% at 33,474.56, and on course for a weekly decline of nearly 10%, if losses hold. The broader Topix fell 4.6% to 2,448.94, poised for a weekly drop of 11%. Both indexes were set for their steepest weekly losses since March 2020. The brutal selloff came after Trump announced on Wednesday Washington’s steepest trade barriers in more than 100 years, sending investors scrambling for safe-haven assets, including the yen, which added further pressure on Japanese stocks. The rout was led by banking stocks as the spectre of tariffs and their potential impact on economic growth stoked speculation that the Bank of Japan may need to delay rising interest rates. This is an intra-day update