Karachi, The Karachi Stock Exchange (KSE) 100 Index underwent a short-term correction in its latest trading session, as outlined by AKD Research. Despite opening positively, the index showcased volatility, hitting a session high of 117 points but ultimately closing with a loss of 266 points at 65,152 points. The decrease in trading volume compared to the previous session indicates a cautious approach among investors.
According to AKD Securities Limited, the KSE-100 Index's performance reflects a broader context of 20.4% growth above its 200-period moving average, signaling an overarching upward trend despite current fluctuations. The observed low volatility contrasts with the past ten sessions' average, suggesting a period of consolidation. Key technical indicators offer mixed signals, with initial support projected around 65,000 points and potential resistance near 65,400 points.
Former ICCI President Dr. Shahid Rasheed Butt commended the proactive steps by the Prime Minister and the finance ministry, particularly emphasizing the reorganization of the Economic Coordination Committee (ECC) under the finance minister's leadership. Dr. Butt noted the significance of automating the Federal Board of Revenue (FBR) to enhance transparency, efficiency, and revenue collection—a move anticipated to elevate revenue targets substantially if implemented effectively.
The report also addressed broader economic strategies, including potential reforms in the tax system to expand the tax base and streamline tax incentives, reflecting on the necessity of a balanced approach to foster economic stability. The ongoing efforts to resolve pending revenue cases could provide a significant fiscal boost, further aiding the government's economic management.
As Pakistan navigates its economic challenges, the insights from AKD Research underscore the importance of strategic financial governance, the potential impact of technological integration in revenue systems, and the need for cohesive policy execution to secure sustainable economic growth.