Karachi: The KSE-100 Index plunged by 1,552 points yesterday, closing at 152,740 as 324 million shares changed hands. The trading session witnessed significant activity in Modaraba, Banks, and Power sectors, with PKGP, BNWM, and FHAM showing positive price changes, while AICL, PSX, and UNITY emerged as the top decliners.

According to Taurus Securities Limited, the market downturn comes amid a series of economic disruptions and geopolitical tensions impacting investor sentiment. The announcement from the Pakistani government regarding increased levies on high-octane petrol and a ban on its use in government vehicles further contributed to the market's negative outlook. Additionally, concerns about energy security in the Middle East and the resulting impact on global oil prices have added to the volatility.

In related developments, Pakistan's financial authorities are grappling with a narrowing trade gap, which now stands at $9.04 billion from July to January. While foreign reserves have climbed to $21.7 billion, foreign direct investment has seen a decline, exacerbated by outflows from treasury bills due to energy concerns in the Middle East. Meanwhile, the government continues to address domestic economic challenges, including proposals for a targeted relief package and measures to manage fuel supplies.