The news about the defence partnership has brought excitement across the board, says expert
\n Karachi
\nThe equity market advanced sharply on Thursday, closing at a fresh record as investor sentiment was buoyed by a landmark Strategic Mutual Defence Agreement signed between Pakistan and Saudi Arabia.
\nThe Pakistan Stock Exchange\u2019s (PSX) benchmark KSE-100 Index settled at 157,953.46 points, up 1,775.65 points, or 1.14%, from the previous close of 156,177.81.
\nDuring the session, the index climbed to an intraday high of 158,082.55 points, gaining 1,904.74 points, or 1.22%. The session low was recorded at 156,978.85 points, still higher by 801.04 points, or 0.51%.
\n\u201cThe 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,\u201d AAH Soomro, an independent investment and economic analyst.
\n\u201cThe index may head upwards without corrections,\u201d he added.
\nPakistan and Saudi Arabia on Wednesday formalised a landmark Strategic Mutual Defence Agreement, pledging to treat any aggression against one country as aggression against both.
\nThe pact was signed during Prime Minister Shehbaz Sharif\u2019s state visit to Riyadh, where he was received by Crown Prince and Prime Minister Mohammed bin Salman at Al-Yamamah Palace.
\nThe pact reflects a joint commitment to enhance bilateral security ties and contribute to regional and global peace, the statement said. It aims to develop defence cooperation further and strengthen joint deterrence against any aggression. Crucially, the agreement stipulates that any aggression against one country shall be considered aggression against both.
\nThe government also raised Rs195 billion from the auction of market Treasury bills (T-bills) on Wednesday, surpassing its Rs175 billion target. However, it rejected bids for the 10-year floating-rate Pakistan Investment Bond (PIB) as investors demanded higher returns.
\nThe T-bill auction drew participation worth Rs1.07 trillion, with yields ending nearly flat. The cut-off yield on a one-month paper eased by 1 basis point (bp) to 10.7445%. The three-month bill yield stood unchanged at 10.8502%, while the six-month paper edged down 1bp to 10.8376%. The 12-month yield also stayed steady at 10.9999%.
\nThe State Bank of Pakistan (SBP) on Monday held its policy rate steady at 11% for the third consecutive meeting, citing inflation concerns amid devastating floods. Since June 2024, the central bank has slashed rates by a total of 1,100bps, but kept them unchanged in June, July, and now September.
\nBy comparison, in the previous session on Wednesday, the KSE-100 Index closed almost flat, down 3.12 points to 156,177.82 from 156,180.94. The day\u2019s high was 157,196.59 points, while the low stood at 155,960.36 points.<\/p>\n","protected":false},"excerpt":{"rendered":"
The news about the defence partnership has brought excitement across the board, says expert Karachi The equity market advanced sharply on Thursday, closing at a fresh record as investor sentiment was buoyed by a landmark Strategic Mutual Defence Agreement signed between Pakistan and Saudi Arabia. The Pakistan Stock Exchange\u2019s (PSX) benchmark KSE-100 Index settled at […]<\/p>\n","protected":false},"author":2,"featured_media":454179,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-503652","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n