- The KSE-100 index closed at 157,953.46 points, up 1,775.65 points or 1.14%.
- Index affected intraday high at 158,082.55, up 1,904.74 points or 1.22%.
- Session’s low recorded at 156,978.85, still up 801.04 points or 0.51%.
Equity Market Advanced sharply Thursday and closed by a fresh record when investor mood was bent by a landmark strategically mutual defense agreement signed between Pakistan and Saudi Arabia.
Pakistan Stock Exchange’s (PSX) Benchmark KSE-100 index settled at 157,953.46 points, up 1,775.65 points or 1.14%from the previous end of 156,177.81.
During the session, the index rose to an intraday height of 158,082.55 points and got 1,904.74 points or 1.22%. The Session Low was registered at 156,978.85 points, still higher with 801.04 points, or 0.51%.
“The news of the defense partnership has brought excitement everywhere. This is an important macro change -games that can pour more liquidity and reduce the risk premium,” Aah Soomro, an independent investment and economic analyst.
“The index can go upwards without corrections,” he added.
Pakistan and Saudi Arabia formalized on Wednesday a landmark strategically mutual defense agreement that promised to treat any aggression against a country as aggression against both.
The pact was signed during Prime Minister Shehbaz Sharif’s state visit to Riyadh, where he was received by Crown Prince and Prime Minister Mohammed bin Salman at Al-Yamamah Palace.
The pact reflects a common obligation to improve bilateral security ties and contribute to regional and global peace, the statement states. It aims to develop defense cooperation further and strengthen joint deterrence against any aggression. Of crucial importance, the agreement determines that any aggression against a country is considered aggression against both.
The government also raised RS195 billion from the auction of the Market Bills (T-bills) Wednesday and surpassed its RS175 billion goals. However, the bid for the 10-year-old Floating Interest Pakistan Investment Bond (PIB) rejected as investors demanded higher returns.
The T-Bill auction drew participation to a value of RS1.07 trillion, with yields ending almost flat. The cut -off yield on one month of paper relieved with 1 basic point (BP) to 10.7445%. The three-month bill, which was unchanged at 10,8502%, while the six-month paper wound down to 10,8376%. The 12 -month yield also remained stable at 10,9999%.
The State Bank of Pakistan (SBP) held its political rate stable at 11% on Monday at the third consecutive meeting with reference to inflation -concerned concerns in the midst of devastating floods. Since June 2024, the central bank has cut a rate with a total of 1.100bps, but kept them unchanged in June, July and now September.
In comparison, the KSE-100 index in the previous session on Wednesday closed almost flat, down 3.12 points to 156,177.82 from 156,180.94. Today’s high was 157,196.59 points, while the low ones stood at 155,960.36 points.
