Karachi: The Karachi Stock Exchange's benchmark KSE-100 index saw a significant increase, gaining 798 points to close at 78,828, amid a high volume of trades and notable policy announcements that have resonated across various sectors. The trading session was marked by robust activity, particularly in the technology, cable, and cement sectors.
According to Turus Securities Limited, the trading volume reached 370 million shares. Notable price increases were seen in stocks such as MUREB, SEARL, and AVN, while KTML, PGLC, and KOHC were among the top decliners. This dynamic movement in the stock market comes at a time when several key economic developments are unfolding.
The State Bank of Pakistan recently announced a cut in the policy rate by 100 basis points to 19.5%, a move that has received mixed reactions from various economic sectors. The Karachi Chamber of Commerce and Industry (KCCI), for instance, has criticized the rate cut as insufficient given the current economic pressures.
In other significant developments, Pakistan is seeking a three to five-year extension on $12 billion in debt from key creditors like Saudi Arabia, China, and the UAE to facilitate an IMF bailout, signaling a strategic maneuver to stabilize the economy. The fiscal year 2025 is expected to show economic improvement with a GDP growth forecast of 2.5-3.5% and foreign reserves anticipated to reach $13 billion, placing the country in what is described as a 'comfort zone.'
Further buoying market sentiments, Fitch Ratings has upgraded Pakistan's rating to ‘CCC+’, reflecting a slightly improved outlook on the country’s long-term foreign-currency issuer default rating. Additionally, the foreign investment climate appears favorable as repatriation of profits and dividends by foreign investors has hit a six-year high.
On the energy front, Pakistan Oilfields has reported a new hydrocarbon discovery at the Razgir-1 exploratory well in Kohat, which could contribute to the country's energy sector dynamics. Simultaneously, the government has started addressing major bottlenecks in the power sector and has given a 100% tax credit to coal miners in Sindh to encourage the supply of coal to powerhouses.
As the government continues to navigate through these economic reforms and sectoral developments, the response from the business community and the impacts on the stock market will remain key areas of focus.