Pakistan’s stocks jump to historic high after defence pact with Saudi Arabia

KARACHI: The Pakistan Stock Exchange surged to a record high on Thursday, buoyed by optimism over a landmark Strategic Mutual Defence Agreement (SMDA) signed with Saudi Arabia during Prime Minister Shehbaz Sharif’s visit to Riyadh.

The benchmark KSE-100 Index rallied to an intraday high of 1,904 points before closing at 157,953, gaining 1,775 points (+1.14 per cent), Topline Securities said. It marked the index’s highest-ever close, with strong buying interest across sectors.

According to Pearl Securities, technology, refinery, banking, food and investment banks led the gains, while renewed appetite for second- and third-tier stocks lifted overall sentiment.

Al Habib Capital said participation in banking and energy stocks, attractive valuations, a firm rupee, and optimism over the upcoming IMF review further underpinned the rally. The firm also noted the SBP’s report of a USD245 million current account deficit for August 2025, compared with USD82 million a year earlier.

PSX closes flat amid range-bound trading

Blue-chip stocks provided major support, with ENGROH, NBP, MARI, UBL and BOP collectively adding 733 points to the index.

Market activity remained robust as volumes reached 1.96 billion shares with a traded value of PKR 56.9 billion. CNERGY dominated the board as the volume leader, with 213 million shares changing hands.

Meanwhile, after weeks of sharp swings, gold prices in Pakistan held steady on Thursday, giving local buyers and investors a brief pause from the relentless rally that has defined September so far.

According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24-karat gold per tola remained unchanged at Rs388,600. Similarly, the 10-gramme price also stayed flat at Rs333,161.

Silver, however, saw a slight uptick, climbing by Rs31 to reach Rs4,418 per tola.