The Pakistan Stock Exchange (PSX) moved higher on Friday as optimism over a potential US–Iran agreement and easing tensions in the Middle East boosted investor sentiment.
The benchmark KSE-100 Index touched an intraday high of 173,444.89, rising 3,532.94 points, or 2.08%, while the day’s low of 170,758.25 still reflected a gain of 846.30 points, or 0.50%, from the previous close of 169,911.95.
“The expectations of a deal in the Middle East and ongoing diplomatic activity are creating a sense of FOMO among investors, who are rushing back to build positions ahead of possible positive developments,” said Ahfaz Mustafa, Chief Executive Officer of Ismail Iqbal Securities.
Investor sentiment strengthened after US President Donald Trump said it was “looking very good” that Washington could reach a deal with Iran and that talks may resume over the weekend.
He also suggested the agreement could include reopening the Strait of Hormuz, although Iran has not indicated any willingness to give up its enriched uranium stockpile. Earlier, US Defence Secretary Pete Hegseth took a more cautious stance, warning that Iran could face a blockade and strikes on infrastructure if it “chooses poorly.”
According to Bloomberg, some Gulf and European leaders believe a lasting agreement could take months and are urging an extension of the truce, while pushing for a swift reopening of Hormuz due to concerns over wider economic impact.
Markets also found support in a 10-day ceasefire between Israel and Lebanon that began on Thursday, although uncertainty remains over its durability.
On the domestic front, Pakistan’s current account posted a surplus of $1.07 billion in March, up from $231 million in February, driven by a lower trade deficit and strong remittances, according to State Bank of Pakistan data. The improvement follows recent inflows from Saudi Arabia that have helped strengthen foreign exchange reserves ahead of upcoming external repayments.
In the previous session, the KSE-100 Index had also gained 1,392.01 points, or 0.83%, closing at 169,911.95.
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