Karachi: The KSE-100 Index experienced a decline on Monday, shedding 254 points to close at 121,971. A total of 1,150 million shares were traded, with significant activity observed in the technology, investment companies, and banking sectors.
As per price changes, the top performers were BNWM, POML, and FHAM, while the most significant decliners were PKGP, YOUW, and NPL. This trading session highlighted the shifting dynamics within key sectors as market participants adjusted their portfolios.
The broader economic indicators showed mixed results. The Large Scale Manufacturing Index (LSMI) recorded a growth of 2.29% year-on-year in April, while the country's current account posted a $1.8 billion surplus for the July-May period. However, Foreign Direct Investment (FDI) saw an 8% decrease to $1.97 billion during the same period.
Additionally, the Real Effective Exchange Rate (REER) index depreciated to 97.8 in May. Meanwhile, the government announced preparedness to handle potential economic fallout from ongoing geopolitical tensions.
In related news, the State Bank of Pakistan eased reporting formats for IT exporters and freelancers, reflecting a shift towards facilitating the sector’s growth. Despite a marginal decline in IT exports in May, the 11-month fiscal year still recorded a 19% growth.
As oil prices continued to rise with the Iran-Israel conflict entering its sixth day, domestic energy policies remained under scrutiny. The National Assembly panel rejected an 18% GST on solar panels, aligning with the government’s aim to enhance renewable energy adoption.
The Balochistan Budget for 2025-26 was announced, with pledges for tax, energy, and state-owned enterprise reforms by Finance Minister Aurangzeb. In response to business community concerns, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) warned of potential shutdowns over business harassment.
The government unveiled a revised procedure for tax fraud punishment and marked its first-ever conviction for insider trading, signaling a stronger regulatory stance. Meanwhile, the Economic Coordination Committee (ECC) has directed open market pricing for tobacco.
Overall, the trading day reflected a nuanced interplay of market factors and broader economic indicators, underscoring the complexity of the current financial environment.