The Pakistan Stock Exchange (PSX) witnessed a strong surge on Thursday, with the KSE-100 Index closing at a historic high, reflecting renewed investor confidence amid the landmark Strategic Mutual Defence Agreement between Pakistan and Saudi Arabia.

The index settled at 157,953.46 points, rising 1,775.65 points, or 1.14%, from the previous close, and reached an intraday peak of 158,082.55 points.

Analysts attributed this rally to heightened optimism, viewing the defence pact as a major boost for regional stability and economic confidence.

The agreement, signed during Prime Minister Shehbaz Sharif’s state visit to Riyadh with Crown Prince Mohammed bin Salman, pledges that any aggression against one nation will be considered aggression against both, underlining shared responsibility for peace and security.

Experts suggest that such geopolitical stability could attract more investment, enhance liquidity, and reduce risk premiums, creating opportunities for sustainable economic growth.

Meanwhile, the government successfully raised Rs195 billion through Treasury bill auctions, signaling healthy market participation and confidence in Pakistan’s financial instruments.

The central bank maintained its policy rate at 11%, balancing economic growth with inflation control.

Overall, the record-breaking market performance reflects optimism not only in financial terms but also in the broader context of strengthened international partnerships and potential for regional prosperity.