Stock Market Index KSE-100 surpasses 158,000 points, establishing a new record high
Pakistan and Saudi Arabia took a significant step forward in their strategic partnership on Wednesday, as they formalized a landmark Strategic Mutual Defence Agreement. The pact was signed during Prime Minister Shehbaz Sharif's state visit to Riyadh at Al-Yamamah Palace, in the presence of Crown Prince and Prime Minister Mohammed bin Salman.
The agreement stipulates that any aggression against one country shall be considered aggression against both, aiming to develop defense cooperation further and strengthen joint deterrence against any aggression. This news has been met with optimism in the financial sector, as it could potentially reduce risk premium and increase liquidity, according to AAH Soomro, an independent investment and economic analyst.
Meanwhile, the equity market also experienced positive movements. The KSE-100 Index advanced on both Thursday and Wednesday, with the index climbing 1,775.65 points and 1,904.74 points respectively. The session's low was higher by 801.04 points, and the index touched an intraday high of 158,082.55 points. The session's low was recorded at 156,978.85 points.
The government raised Rs195 billion from the auction of market Treasury bills (T-bills) on Wednesday. The T-bill auction drew participation worth Rs1.07 trillion. The cut-off yield on a one-month T-bill eased by 1 basis point (bp) to 10.7445%, while the six-month T-bill yield edged down 1bp to 10.8376%. The three-month T-bill yield stood unchanged at 10.8502%.
As the equity market and the T-bill auction both showed positive trends, it appears that the Pak-Saudi strategic partnership could have a positive impact on Pakistan's economic outlook. With increased defense cooperation and potential inflow of foreign investment, the country may see a boost in its economic growth and stability.
