Karachi: In a significant downturn for the Pakistan Stock Exchange, the KSE-100 Index dropped by 418 points, closing at 174,054 as of yesterday. The trading session witnessed a volume of 954 million shares exchanged, indicating substantial market activity.

Investment companies, technology, and power sectors were the focal points of trading during the session. The top gainers, based on price changes, were companies JVDC, ATLH, and THALL. Conversely, the stocks of CHCC, DGKC, and FCCL experienced notable declines.

This market movement comes amid various developments in the region and economic initiatives by the government. The closure of the Afghan border has led to a decrease in terrorist activities in Pakistan. Furthermore, discussions between Prime Minister Shehbaz and Saudi Crown Prince Mohammed bin Salman have revolved around regional situations and ongoing developments.

In economic news, the Pakistani government has launched economic governance reforms and adjusted fuel prices, reducing petrol by Rs10.28 and diesel by Rs8.57 for the upcoming fortnight. Meanwhile, the Federal Board of Revenue has set a Rs4 billion cap on tax-free imports for Gilgit-Baltistan.

The State Bank of Pakistan has introduced a 'financial inclusion index,' and a significant tax collection of Rs6.154 trillion was recorded for the July-December period. Inflation rates are projected to remain moderate, ranging between 5.5 to 6.5 percent in December.

In the energy sector, the Power Division predicts a tariff cut, offering Rs3.4 trillion in relief by 2025, and new seaports are being planned to boost the economy. Additionally, the telecom sector achieved a historic revenue milestone of Rs1 trillion, while PTCL completed its acquisition of Telenor Pakistan, eyeing a 5G rollout.

These economic measures and developments appear poised to impact the market sentiment in the coming weeks.