Karachi: The Karachi Stock Exchange (KSE-100) experienced a notable decline, dropping 578 points to close at 90,287, amid trading of 613 million shares. This movement in the market reflects investor reactions to a mix of local economic challenges and global economic news.
According to Taurus Securities Limited, top performers in terms of price change included BNWM, NCPL, and PGLC, while the most significant declines were seen in shares of NBP, KOSM, and MUGHAL. The activity was primarily concentrated in the banking, technology, and cement sectors, signaling investor focus on these industries.
The economic landscape faced headwinds with several critical indicators showing distress. A government official reported that cutting gas supplies to captive power plants (CPPs) could lead to a Rs 400 billion loss for the government. Furthermore, the large-scale manufacturing (LSM) sector showed a slight contraction of 0.19 percent, and the current account surplus narrowed to $98 million in the first quarter.
In positive developments, Saudi Arabia added $600 million to its $2.2 billion investment commitments to Pakistan, reflecting ongoing efforts to strengthen economic ties between the two nations. This follows the Prime Minister’s advocacy for continued momentum in developing a robust economic partnership with Saudi Arabia.
Other economic news included the setting of a new record in market treasury bills (MTBs), with Pakistan earning $120 million from the export of surplus sugar. Additionally, a recent Pakistan-China B2B meeting spurred $64 million in investments in fisheries. On the global front, OPEC+ is considering delaying a planned oil output hike in December.
The tax collection for the first quarter stood at Rs 2.563 trillion, falling Rs 91 billion short of the target. With an impending October 31st deadline, the Tax Deduction at Source (TDS) Compliance Center issued a stern warning to non-filer traders to meet their obligations.
Amid these fiscal challenges, traders issued a distress call seeking a tariff reduction, and Germany has sought the help of Pakistan’s Chief of Army Staff over the termination of an Independent Power Producer (IPP) deal.