KSE-100 crosses 158000-point milestone for the first time

The equity market in Pakistan saw a strong boost on Thursday, closing at a new record high after the signing of a Strategic Mutual Defence Agreement between Pakistan and Saudi Arabia.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index ended the day at 157,953.46 points, gaining 1,775.65 points, or 1.14%, compared to the previous close of 156,177.81. During trading, the index touched an intraday high of 158,082.55 points, while the lowest level of the day was 156,978.85 points — still well above the earlier close.

Analyst AAH Soomro said, “The news about the defence partnership has brought excitement across the board. This is a major macro rerating game changer that can pour more liquidity and reduce risk premium. The index may head upwards without corrections.”

The “Strategic Mutual Defence Agreement” was signed during Prime Minister Shehbaz Sharif’s visit to Riyadh, where he met Crown Prince Mohammed bin Salman. Both sides pledged that any aggression against one country would be treated as aggression against both. The deal aims to deepen defence ties and strengthen regional peace.

Meanwhile, the government raised Rs195 billion through the auction of market Treasury bills, surpassing its Rs175 billion target. However, bids for the 10-year Pakistan Investment Bond were rejected as investors sought higher returns. The auction drew Rs1.07 trillion in participation, with yields remaining almost flat across different tenors.

The State Bank of Pakistan, in its recent meeting, kept the policy rate unchanged at 11% for the third straight time, citing inflation concerns.

In comparison, Wednesday’s session had been relatively quiet, with the index closing nearly flat.