Karachi: The KSE-100 index saw a significant upturn yesterday, gaining 798 points to close at 78,828, with 370 million shares traded. This surge in the stock market was led by notable performances in various sectors, particularly in technology, cable, and cements. MUREB, SEARL, and AVN topped the price change chart, while KTML, PGLC, and KOHC were among the major decliners.

According to Turus Securities Limited, the trading session was dominated by activities in select sectors, reflecting broader economic trends and policy adjustments. The fiscal year 2024 concluded with a budget deficit of 6.8% of GDP, amidst other significant financial developments. The government has announced a reduction in POL (Petroleum, Oil, and Lubricants) prices and a subsidy package for electricity consumers using up to 200 units to alleviate cost pressures.

Further economic measures include an extension of the deadline for biometric re-verification for sales tax registered persons and a forecast by the Finance Ministry projecting July inflation to be between 12% and 13%. Following consecutive cuts by the State Bank of Pakistan, short-term Kibor rates have also declined, potentially lowering borrowing costs for businesses and consumers. Additionally, the government has moved to exempt petroleum products from sales tax and introduced support measures for the IT sector, agriculture, and SMEs.

Amid these fiscal adjustments, the Federal Board of Revenue (FBR) has issued new guidelines for banks, stating that only bad debts classified as losses can be considered as expenses. This directive could impact the banking sector's financial management strategies. Moreover, the agricultural sector is facing challenges, as evidenced by a dramatic 48% drop in cotton production, signaling potential issues for textile and related industries.