Karachi: The Karachi Stock Exchange's KSE-100 index saw a significant surge yesterday, climbing 3,648 points to close at 107,175. A total of 513 million shares were traded, with CNERGY, PIOC, and INIL showing the most substantial price gains. In contrast, PGLC, PKGP, and PSEL were the top decliners. Trading activity was mainly concentrated in the Technology, Oil Marketing Companies (OMCs), and Refinery sectors.
The stock market's positive performance coincided with a broader sense of optimism in the region, following reports of a ceasefire agreement between Pakistan and India. President Donald Trump announced that both countries had agreed to cease hostilities, with reports indicating that Pakistan's counterstrike compelled India to seek peace.
Despite the ceasefire, the Indus Waters Treaty (IWT) remains suspended. President Trump has expressed his intention to work with both nations to resolve the long-standing Kashmir dispute.
In international economic developments, discussions between the United States and China aimed at resolving trade tensions are ongoing in Geneva. Meanwhile, the International Monetary Fund (IMF) has approved a $1 billion disbursement to Pakistan as part of a $7 billion agreement. This comes with stringent fiscal targets for the next fiscal year.
Economic indicators in Pakistan show a robust 31 percent increase in remittances from July to April of the fiscal year 2025, even as weekly inflation rose by 0.24 percent. The upcoming federal budget for 2025-26 is expected to include a cut in taxation rates for salaried individuals, as outlined by the Prime Minister.
Amid these developments, the National Electric Power Regulatory Authority (NEPRA) has reduced tariffs for distribution companies, including K-Electric. However, a NEPRA member has raised concerns over inefficiencies in the power sector.
Exports to Europe have increased to $6.8 billion, and trade ties between Pakistan and the United Kingdom are poised for expansion. The Economic Coordination Committee (ECC) has ordered the reallocation of Rs50 billion from the Public Sector Development Program (PSDP) to priority development projects.
The steel industry is seeking a clear tax policy, while the IMF has called for a reduction in auto tariffs. The ECC is also examining Sui Northern Gas Pipelines Limited's (SNGPL) cash flow projections as part of efforts to retire a Rs50 billion loan.
As the region experiences a temporary reprieve from conflict, stock markets in Pakistan and India are anticipated to rally in relief, buoyed by the ceasefire and supportive economic measures.