Karachi: The KSE-100 index saw a significant rise yesterday, climbing 410 points to close at 79,397, with a robust trading volume of 387 million shares. The day marked notable price increases in some stocks, while others experienced declines, reflecting a mixed performance across various sectors.
According to Turus Securities Limited, the trading activity was predominantly concentrated in the banking, technology, and food sectors. TRG, FABL, and HGFA led the gains, while NCPL, PAKT, and SHFA were among the top decliners. This performance comes amidst a backdrop of broader economic news that has the potential to influence market trends, including falling Treasury bill yields which have sparked hopes for a cut in the policy rate.
The government's new strategies, such as planning to exit the fuel pricing process, and accelerating the TAPI project with Turkmenistan, are also noteworthy developments. These moves are aimed at enhancing operational efficiencies and energy security. Meanwhile, the Prime Minister's push for a plan to provide low-cost electricity to the industrial sector aligns with broader efforts to support economic growth.
In contrast, challenges persist as business leaders contemplate strikes over rising operational costs, and farmers grapple with escalating expenses and high tariffs. The auto financing sector is also showing a downward trend for the second consecutive year, reflecting continued consumer caution.
The economic landscape is further complicated by the government's introduction of fresh taxes on vendors, a record taxation of Rs368 billion on the salaried class, and a proposed power tariff hike of Rs0.63/unit. These fiscal measures are prompting calls from various sectors, including tanners, for tax relief to ensure their survival amid tightening economic conditions.