Karachi: The KSE-100 Index experienced a downturn yesterday, shedding 165 points to close at 139,254, amid a robust trading session where 655 million shares changed hands. The day's trading activity was primarily concentrated in the Technology, Banks, and Investment Companies sectors.
In terms of price movement, UPFL, HGFA, and HUMNL emerged as top performers, while PKGP, AGL, and EFUG registered significant declines. The performance of these stocks highlighted the volatile nature of the market, reflecting shifting investor sentiments.
In a broader economic context, the day was filled with significant developments. Pakistan and Afghanistan finalized a long-awaited Preferential Trade Agreement (PTA), marking a step forward in bilateral trade relations. Meanwhile, the International Monetary Fund (IMF) called for a comprehensive plan to address the country's circular debt issue.
Prime Minister is slated to inaugurate 'PortVerse' next month, a move anticipated to enhance the country’s infrastructure. In related news, the World Bank is seeking amendments to certain project agreements, while the Asian Development Bank has maintained its growth outlook for Pakistan.
The tax-to-GDP ratio saw an upward revision, increasing by 1.5 percentage points to reach 10.6%. Additionally, the Special Investment Facilitation Council (SIFC) has stepped in to ease tensions concerning the Federal Board of Revenue's powers.
On the financial front, Treasury bill yields dropped as investors anticipated rate cuts, and there are plans for the sell-off of Lesco, Fesco, and Gepco by the end of December.
The Public Accounts Committee expressed dissatisfaction over briefings from the Federal Board of Revenue and the ministry regarding the recent sugar price hike. In the manufacturing sector, vanaspati manufacturers have threatened to halt production unless tax issues are resolved.
On the corporate side, Haleon announced plans to increase its investment in the country, while Systems Limited is exploring the acquisition of an IT and IT-enabled services business, signaling potential growth in the technology sector.