KARACHI:

Pakistan stocks rallied to new highs on Thursday as the KSE-100 Index jumped 1,776 points, or 1.14%, to close at 157,954—just shy of the 158,000 psychological barrier.

The surge followed the signing of a landmark Strategic Mutual Defense Agreement between Pakistan and Saudi Arabia, under which any aggression against one nation will be considered an attack on both. Market watchers said the pact not only strengthens Pakistan’s geopolitical standing in the Middle East but also opens prospects for defense exports, reshaping investor sentiment, noted Ali Najib, Deputy Head of Trading at Arif Habib Ltd.

Adding to the momentum, the US Federal Reserve trimmed its policy rate by 25 basis points and signaled further cuts this year, boosting global risk appetite, he added.

Locally, the g

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