Karachi: The Karachi Stock Exchange (KSE-100) witnessed significant gains yesterday, closing up 764 points at 82,248, with substantial trading activity involving 421 million shares. The day's trading highlighted advances in sectors such as Textile Spinning, Technology, and Power, while performance was mixed across other sectors.
According to Taurus Securities Limited, top performers in terms of price change included YOUW, KTML, and GLAXO, whereas SPWL, HABSM, and SHFA experienced declines. The day's developments were supported by a variety of economic news, including the approval of a $7 billion Extended Fund Facility (EFF) by the IMF board, which has been anticipated to stabilize financial expectations in the region.
In addition to the IMF's support, the Asian Development Bank (ADB) projected a modest 2.8% growth for the economy, albeit acknowledging the risks posed by political uncertainties and funding challenges. The Federal Board of Revenue (FBR) has indicated that there are currently no plans for new taxation measures or a mini-budget, providing some relief amidst economic adjustments.
Furthermore, international cooperation seems to be expanding with Pakistan and Belarus exploring joint ventures for a tractor plant and Pakistan and Turkmenistan setting plans to sign an MoU to grant Gwadar port access under the China-Pakistan Economic Corridor (CPEC) framework. The country has also seen foreign investments with $55 million being invested in T-bills within a week and borrowing of $714.74 million from multiple sources over July and August.
Amidst financial policy developments, the National Savings has adjusted profit rates downwards by up to 375 basis points, and the State Bank of Pakistan (SBP) is innovating with an alternative Sukuk structure. Efforts to ensure transparency in coal pricing are underway with a Coal Regulatory Authority (CRA) proposed. Moreover, despite ample local supply, imports of high-speed diesel continue, highlighting ongoing supply management challenges.
Additionally, economic activities were influenced by operational decisions such as the temporary shutdown of operations by the Indus Motor Company and a new discovery of hydrocarbon reserves in Sindh by OGDCL, indicating potential impacts on the energy sector.