The Pakistan Stock Exchange (PSX) saw a strong rally on Thursday, with the benchmark KSE-100 Index closing at a record high near the 158,000 level.
The index reached an intra-day peak of 158,082.55, before settling at 157,953.46, marking an increase of 1,775.65 points or 1.14%.
Analysts attributed the market’s buying momentum to several factors. “The signing of a defence pact between Pakistan and Saudi Arabia drove the momentum in the market,” said Sana Tawfik, Head of Research at Arif Habib Limited. She also noted the market’s positive outlook on developments in the refinery sector.
The “Strategic Mutual Defence Agreement (SMDA)” was signed on Thursday during Prime Minister Shehbaz Sharif’s visit to Riyadh. The agreement states that any aggression against either country will be considered an aggression against both.
In another development, Pakistan’s current account posted a deficit of $245 million in August 2025, according to data from the State Bank of Pakistan. Despite the rising import pressure, analysts noted that the current account remains contained.
After a flat session on Wednesday, where the KSE-100 Index barely moved, investor participation was notably active on Thursday. The rupee also saw modest gains, appreciating 0.01% to settle at 281.47 against the US dollar.
