Karachi: The KSE-100 index witnessed a significant drop, losing 635 points to close at 78,652, with a trading volume of 533 million shares. The major activities were seen in sectors like Technology, Cable, and Textile Spinning, marking a volatile trading session.

According to Taurus Securities Limited, the market downturn reflected investor concerns over several economic developments. The delay in obtaining approval from the International Monetary Fund (IMF) poses substantial risks to the economic stability of Pakistan. In other significant moves, Pakistan has requested Saudi Arabia for a $1.2 billion oil facility and agreed to an IMF condition to halt the creation of new economic zones.

Financial adjustments also influenced market sentiments, including a tariff increase of Rs1.74 per unit for Distribution Companies and K-Electric in the fourth quarter of FY24. Additionally, Treasury bill outflows surged, indicating rising uncertainty among investors.

Discussions between the Saudi envoy and Pakistan’s finance minister aimed at bolstering economic ties and addressing financial issues were also key topics. Meanwhile, regional developments such as Afghanistan’s commencement of work on the TAPI pipeline and local issues like prioritization of gas supply to industries parallel to residential areas were also noted.

The financial landscape was further shaped by corporate developments, including Fauji Fertilizer’s board approving the acquisition of Agritech Limited and Avanceon’s subsidiary securing a multi-million dollar project in the Middle East for energy solutions.