Karachi: The Karachi Stock Exchange's KSE-100 Index fell by 579 points, closing at 188,588, with a trading volume of 867 million shares. The trading session observed significant activity within the Power, Technology, and Cement sectors, while SAZEW, JVDC, and SSOM stocks recorded the highest gains in price change. Conversely, PIOC, FATIMA, and PIBTL stocks emerged as the leading decliners.

According to Taurus Securities Limited, the market's performance was influenced by several key developments and announcements. These included the US deploying an aircraft carrier amid rising tensions with Iran, and the State Bank of Pakistan's decision to maintain the key interest rate at 10.5 percent. Additionally, the State Bank revised its GDP growth projection upwards to 4.75 percent, while the government approved a change in the base year for national accounts to 2025-26.

The business community voiced criticism over the State Bank's unchanged policy rate, with concerns over lagging exports, investments, and agriculture sectors. Meanwhile, the government plans to link power and gas subsidies with the Benazir Income Support Programme, as decisions by Alternative Dispute Resolution panels are set to become binding for wholly state-owned enterprises. The power sector saw a reduction in circular debt flow to Rs75 billion in the first half of the year, and the Prime Minister expressed support for developing extensive gemstone reserves.

In response to anticipated winter shortages, Sui Southern Gas Company reaffirmed its commitment to prioritizing gas supply for the industry. The government also set aside a proposal to revoke the agreement on the Additional Profit Levy, while the average cash reserve requirement for banks was reduced to 5 percent. Despite these measures, rice exports in the first half of the year plummeted by 49.56 percent year-on-year. The Securities and Exchange Commission of Pakistan registered three new Real Estate Investment Trust schemes, and KE announced its exit from the Al Jomaih Power lawsuit.