Karachi: The KSE-100 Index experienced a significant decline yesterday, shedding 481 points to close at 159,097. A total of 956 million shares were traded, indicating an active day in the market. Notable performers included PSEL, PIBTL, and PKGP in terms of price appreciation, while HGFA, THALL, and KEL were among the top decliners. Investor activity was predominantly focused on investment companies, banks, and the technology sector.
The market downturn comes as part of a broader economic backdrop highlighted by ongoing legislative and fiscal developments. The Pakistan Peoples Party's Central Executive Committee has rejected proposed amendments to the National Finance Commission Award as outlined in the 27th Amendment. Despite the significance of this amendment, it remains absent from the Senate's agenda as the session resumes today.
Meanwhile, the Economic Coordination Committee is set to deliberate on a crucial economic agenda, with outcomes that could impact various sectors. In the energy sector, the Power Division has requested the National Electric Power Regulatory Authority to approve a three-year incremental package for industrial and agricultural consumers. However, Nepra has expressed concerns about persistent circular debt issues that could remain unresolved without significant reforms.
In other economic news, the federal budget for consultants was delayed, but there was a modest increase in foreign exchange reserves, which ticked up by $31 million. Additionally, capacity charges for energy are beginning to rise once again.
The government has revised national savings profit rates, aiming to attract more investors. In the realm of trade, services exports saw a 15 percent surge, driven primarily by growth in the information technology sector. A new portal has been launched to facilitate digital investment in government securities, marking a step forward in financial technology adoption.
Positive growth was also observed in the pharmaceutical sector, with a 34 percent increase in exports. The Pakistan Telecommunication Company has called for a unified tariff based on the Weighted Average Cost of Gas to streamline power and gas supply costs.