KARACHI: The Pakistan Stock Exchange (PSX) closed at an all-time high of 157,953.47 points on Thursday, up by 1,775.65 points with analysts attributing the latest surge to growing investor confidence following Pakistan’s landmark defense pact with Saudi Arabia this week.
According to the PSX website, Pakistani stocks rose during the intra-day trading to 158,082.55 points before declining to 157,953.47 points at close of business. The stocks registered an increase of 1.14 percent from the previous day’s close, which was recorded at 156,177.81 points. The market saw robust activity, with 1.959 billion shares valued at Rs56.93 billion ($1 billion) compared to the 1.499 billion shares worth Rs48.85 billion ($857 million) traded the previous day.
The development takes place a day after Pakistan and Saudi Arabia signed a “Strategic Mutual Defense Agreement,” pledging that aggression against one country would be treated as an attack on both, with the move expected to enhance joint deterrence and strengthen decades of military and security cooperation between the allies.
“The market touched the all-time high after Pak-Saudi pact, which is likely to ease (Islamabad’s) financial burden as Pak-Saudi relations improve and investors expect economic support following the Middle East pact,” Ahsan Mehanti, chief executive officer of Arif Habib Commodities, told Arab News.
Leading brokerage house Topline Securities agreed, crediting the points surge to the landmark defense pact.
“The bulls stampeded across the trading floor today as the local bourse surged on the back of a landmark development— the signing of the Strategic Mutual Defense Agreement (SMDA) between Saudi Arabia and Pakistan,” Topline Securities said.
’HISTORIC, STRATEGIC’ TIES
The pact was signed between the two countries during Prime Minister Shehbaz Sharif’s state visit to Riyadh on Wednesday, where he met Saudi Crown Prince and Prime Minister Mohammed bin Salman at Al-Yamamah Palace. The two leaders, joined by senior ministers and military officials, reviewed what Sharif’s office called a “historic and strategic” relationship between the two nations and discussed regional developments.
The accord comes at a time of extreme volatility in the Middle East, where prolonged conflicts have heightened fears of wider instability, reinforcing the urgency Gulf states place on stronger security and defense partnerships.
A joint statement released later described the pact as a reflection of the two governments’ shared commitment to strengthening defense cooperation and “achieving security and peace in the region and the world.”
Saudi Arabia and Pakistan have for decades maintained close political, military and economic ties. The Kingdom hosts more than 2.5 million Pakistani expatriates — the largest overseas community sending remittances back home — and has repeatedly provided Islamabad with financial support during economic crises. Defense cooperation has included training, arms purchases and joint military exercises.
The new agreement formalizes that cooperation into a mutual defense commitment, a step that analysts widely say places the relationship on par with other strategic partnerships in the region.
