Karachi: In a notable trading session yesterday, the KSE-100 index saw a significant rise, gaining 1,212 points to close at 81,156, with a robust 440 million shares traded. The market activity primarily centered around the Technology, Investment Companies, and Banking sectors.
According to Turus Securities Limited, the top performers in terms of price change included AVN, PAEL, and SYS, while PGLC, PAKT, and PKGP faced declines. The bullish momentum in the stock market comes amidst a series of economic forecasts and developments that have investors eyeing various sectors with keen interest.
In broader economic news, the International Monetary Fund (IMF) projects Pakistan's economy to expand by 3.5% in FY25, despite Moody’s expressing doubts about the success of the recent IMF loan. Additionally, there seems to be low expectation for a rate cut, even with the IMF agreement in place. The government has set an ambitious three-year target of $60 billion, despite concerns from exporters about the taxation structure.
The Ministry of Finance reported that from FY12 onward, a subsidy of Rs 4.975 trillion has been provided to the power sector. Provinces are expected to increase tax revenue by widening the net to include more services. Meanwhile, Karachi's small and medium enterprises are under threat from rising costs, as per industry leaders.
Other key updates include a significant increase in petrol prices by Rs9.99 and diesel by Rs6.18. Bank lending to the private sector has risen by 77%, while the surge in steel imports is impacting local production. The oil marketing companies are seeking an increase in margins due to industry challenges, and the reluctance of the World Bank to finance the 'APMS' due to the PSP of Discos is also noted.
In other developments, tractor prices have skyrocketed due to new taxes, increasing by up to Rs. 323,000. SNGPL has procured rotary meters to reduce line losses, and Sapphire has signed an agreement to buy power firms. Notably, new oil and gas reserves have been discovered in Attock, signaling potential relief for the energy sector.