Karachi: The KSE-100 Index saw a significant drop of 1,175 points, closing at 169,497, with a trading volume of 779 million shares. The stocks of YOUW, MEHT, and THALL showed the most significant price increases, while MLCF, LOTCHEM, and CHCC were the top decliners. The trading activity was primarily concentrated in the banking, food, and investment company sectors.

According to Taurus Securities Limited, this market movement comes as part of a broader economic landscape marked by rising oil prices, policy rate adjustments, and regulatory changes. The market's reaction aligns with recent economic developments, including a policy rate hike and the introduction of new regulations by Nepra aimed at enhancing the safety and reliability of the power system.

In other developments, the State Bank of Pakistan (SBP) has projected that its reserves will reach USD 18 billion by June. Additionally, the inflation rate is expected to remain above the target, impacting the overall economic conditions. Meanwhile, notable industry adjustments include PIA scaling back flights and revising fares, and the government approving Rs4.4 billion for PIA retirees. The Federation of Pakistan Chambers of Commerce and Industry has called for the suspension of petroleum and carbon levies to ease economic pressures.

The export sector also faces challenges, with a reported 7.14% decline over nine months, while circular debt in the power sector has increased by Rs224 billion in eight months, reaching Rs1.84 trillion by February. The Prime Minister has emphasized the need to boost gemstone exports using local resources as part of the economic recovery efforts.