Karachi: The KSE-100 index surged 515 points in yesterday’s trading, closing at 78,261 with a substantial volume of 552 million shares exchanged. The market saw significant activity in sectors such as Technology, Cements, and Textile Spinning, with top performers including NBP, BNWM, and MUGHAL, while LCI, LOTCHEM, and PSEL faced declines.
According to Turus Securities Limited, the financial landscape was shaped by several key developments, including positive directions in negotiations with the International Monetary Fund and expectations of rate cuts that led to a drop in Treasury bills’ yields ranging from 74 to 148 basis points. Other noteworthy events included the Public Companies (PC) Board’s approval for the appointment of Financial Advisors and ongoing concerns about potential losses in exports and foreign direct investment due to regulatory challenges.
Economic updates continued with NEPRA’s decision to hike electricity rates for Karachi by Rs5.75 per unit and the State Bank of Pakistan’s plan to introduce new currency notes. Meanwhile, a significant portion of consumers, about 66%, were spared from a gas tariff hike. Additionally, Remittance Deposits Accounts (RDA) inflows saw a decline of 19.5% to $161 million in July, highlighting shifts in the financial inflow landscape.
The Small and Medium Enterprises Development Authority (SMEDA) is focusing on enhancing SME access to financing, which could bolster small business contributions to the economy. In the energy sector, Pakistan is set to auction 20 offshore blocks for oil and gas exploration, and Balochistan has been given a deadline to curb fuel smuggling. Furthermore, the Pakistan Telecommunication Authority Chairman announced the anticipated launch date for 5G services, enhancing connectivity prospects.
Additional reports include a Rs151 billion irregular payment issue involving KAPCO and the Competition Commission of Pakistan engaging stakeholders in the proposed merger between PTCL and Telenor, suggesting a reshaping of the telecom landscape. In infrastructure developments, Crescent Steel secured an additional order for coated pipes for the K-IV water project, indicating progress in essential public utilities.