Islamabad: The KSE-100 index closed lower by 91 points yesterday, settling at 77,993 amidst mixed sectoral performances and significant economic developments. The market witnessed notable trading activity with 635 million shares exchanged, highlighting key movements in textile, technology, and food sectors.
According to Taurus Securities Limited, the best performers based on price change included Bannu Woollen Mills (BNWM), Fauji Fertilizer Bin Qasim Limited (FFBL), and Mari Petroleum Company Limited (MARI), while GlaxoSmithKline (GLAXO), AGP Limited (AGP), and K-Electric (KEL) were among the top decliners. The trading activity was primarily concentrated in the textile spinning, technology, and foods sectors, indicating varying investor focus across these industries.
In economic news, Moody’s has upgraded Pakistan’s rating due to reduced default risk, though the IMF has yet to schedule Pakistan’s bailout discussion until September 6. The Rashakai Special Economic Zone Development Company (RSEZDOC) has issued a warning to the government to resolve issues or risk cooperation with China. Other significant news includes a spike in profit repatriation following the State Bank of Pakistan’s easing of controls and the government’s ongoing concerns with low tax compliance despite the Tajir Dost initiative.
Additionally, the National Electric Power Regulatory Authority (NEPRA) expressed concerns over the drop in power consumption, and the government announced plans to streamline and accelerate the privatization of state-owned Distribution Companies (Discos). The Economic Coordination Committee (ECC) is set to revisit remittance incentives, while a strike has significantly disrupted trade activities across the country. The federal cabinet has approved the merger of 82 state-owned enterprises, and an advisory panel has been established for the conversion of Independent Power Producers (IPPs) to Thar coal, highlighting ongoing efforts to address energy and economic challenges.
The textile and leather industries have outlined factors adversely impacting exports, and charges by Islamic banks have come under scrutiny for being exorbitant, reflecting a broad spectrum of economic and financial issues facing the country.