Karachi Stock Exchange Observes Slight Uptick in Market Performance

Karachi, The Karachi Stock Exchange (KSE-100) witnessed a marginal increase of 14 points yesterday, closing at 56,680, with a notable trading volume of 660 million shares.

According to Turus Securities Limited, the market saw its top performance in shares of PAEL, PKGP, and MUREB, while BAHL, MTL, and ABL experienced declines. The trading activity was predominantly concentrated in the sectors of Technology, Oil Marketing Companies (OMCs), and Refineries. Other key financial news, the International Monetary Fund (IMF) and the Pakistani government have reached a Staff-Level Agreement (SLA) on the first review of the Stand-By Arrangement (SBA). The IMF team acknowledged the government's efforts in meeting quarterly targets during their meeting with Prime Minister Anwaar-ul-Haq Kakar. Additionally, the Cabinet body has approved a revised policy for State-Owned Enterprises (SOEs), and the Large-Scale Manufacturing Industries (LSMI) output showed a modest year-on-year increase of 0.68%.

Significant changes in fuel prices were noted, with petrol prices decreasing by Rs2.04 and High-Speed Diesel (HSD) by Rs6.47. In the treasury bills market, the cut-off yield was down by up to 50 basis points. The Pakistani Rupee continued its downward trajectory, while obsolete Karachi Electric (KE) plants have reportedly cost consumers an additional Rs3-5 per unit. The Economic Coordination Committee (ECC) decided to explore the import of goods through a government-to-government arrangement.

In other developments, government securities are now being traded on the Pakistan Stock Exchange (PSX), and a retrospective tax is expected to generate Rs44 billion for the cash-strapped government. A notable tax refund fraud amounting to Rs12 billion was also reported. In the banking sector, Habib Bank Limited (HBL) and Bank of China signed a significant Memorandum of Understanding (MoU) for strategic cooperation.