The bourse climbed higher on Friday as optimism over a potential US-Iran deal and easing Middle East tensions boosted investor sentiment.
The Pakistan Stock Exchange's (PSX) benchmark KSE-100 closed at 173,939.01 points after registering a rise of 4027.06 points or 2.37%, up from the previous close of 169,911.95 points.
The index traded between a high of 174,404.03, up 4,492.08 points, and a low of 170,758.25, up 846.37 points or 0.50% versus the previous close of 169,911.95
“The expectations of a deal in the Middle East, and the constant diplomatic shuffle, are creating a sense of FOMO [fear of missing out] among investors, who are rushing back to build positions ahead of the possible good news,” said Ahfaz Mustafa, Chief Executive Officer (CEO) of Ismail Iqbal Securities.
Sentiment improved after US President Donald Trump struck an upbeat tone, saying it was “looking very good” that Washington could make a deal with Iran and that talks could resume this weekend.
He also claimed the deal would include the opening of the Strait of Hormuz, though Iran has given no public indication it would surrender its enriched uranium stockpile. US Defence Secretary Pete Hegseth took a tougher line earlier, warning that if Iran "chooses poorly" it would face a blockade and strikes on infrastructure.
Bloomberg reported that some Gulf Arab and European leaders fear a durable agreement could take months and have called for the truce to be extended, pressing for Hormuz to reopen quickly amid concerns about broader economic fallout.
Markets also drew some comfort from a 10-day ceasefire between Israel and Lebanon that took effect on Thursday, although the durability of the arrangement remains uncertain.
In a further positive, Pakistan’s current account surplus rose to $1.07 billion in March from $231 million in February, supported by lower trade deficits and strong remittances, according to State Bank of Pakistan data. The data followed recent Saudi inflows that have helped support foreign exchange reserves ahead of upcoming external repayments.
In the previous session, the KSE-100 Index rose 1,392.01 points, or 0.83%, to close at 169,911.95.
