Pakistan stock market: The bulls returned to Karachi Stock Exchange‘s KSE 100 index as it jumped nearly 1% in trade on Thursday after a nearly lacklustre session seen on Wednesday. The KSE 100 index rose over 1,300 points or 0.85% to the day’s high of 157,590 amid a major defence deal with Saudi Arabia.
With today’s rise, the KSE 100 index has delivered near multibagger returns to investors, surging 96% in a year.
September marks the fifth consecutive month of gains for the KSE 100 index, which is up nearly 6% so far this month. It comes on the back of a nearly 7% rise seen in August, 11% gains recorded in July, and 5% and 7% growth clocked in June and May, respectively.
Pakistan’s surge is explained by its small market size—where even limited foreign inflows can have an outsized impact—alongside IMF support and domestic rate cuts that spurred liquidity, Harshal Dasani, Business Head, INVAsset PMS, told Mint on an earlier occasion.
Much of the momentum has been driven by incremental fund flows from the US and China, which, given Pakistan’s scale, have been enough to trigger a sharp rally, he added.
Pakistan-Saudi defence deal
Meanwhile, Pakistan’s stock market experienced a sharp surge today, following the signing of a formal mutual defence pact between Pakistan and Saudi Arabia on Wednesday.
State-run Pakistani television broadcast footage of Prime Minister Shehbaz Sharif and Saudi Crown Prince Mohammed bin Salman — the kingdom’s de facto leader — embracing after the agreement was signed. Also present at the ceremony was Pakistan’s Army Chief, Field Marshal Asim Munir.
The Saudi deal comes months after a military conflict between Pakistan and India in May.
India’s Ministry of External Affairs spokesman, Randhir Jaiswal, said in a post on social media website X that India was aware of the development, adding it would study its implications for New Delhi’s security and for regional stability.
“The government remains committed to protecting India’s national interests and ensuring comprehensive national security in all domains,” he said.
(With inputs from agencies)
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