Stocks rose Friday as investors looked higher, fueled by new optimism that a deal ending the Middle East war is within reach, with risk appetite further bolstered by hopes of a broader diplomatic thaw.
The Pakistan Stock Exchange’s benchmark KSE-100 index traded between a high of 173,444.89 (up 3,532.94 points, or 2.08%) and a low of 170,758.25 (up 846.30 points, or 0.50%) from the previous close of 169,911.95.
“Expectations of a Middle East deal and constant diplomatic shakeups are creating a sense of FOMO among investors, who are rushing to build positions in anticipation of possible good news,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities, speaking to PK Press Club.tv.
Sentiment improved after US President Donald Trump struck an optimistic tone, saying it was “very good” that Washington could reach a deal with Iran and that negotiations could resume this weekend. He also said the deal would include the opening of the Strait of Hormuz, although Iran has given no public indication that it would give up its stockpile of enriched uranium.
US Defense Secretary Pete Hegseth took a tougher line earlier, warning that if Iran “made a bad choice” it would face a blockade and strikes on its infrastructure.
Bloomberg reported that some Arab and Gulf European leaders feared a lasting deal could take months and called for the truce to be extended, pushing for Hormuz to reopen quickly due to concerns about the broader economic fallout.
Markets were also somewhat reassured by the ten-day ceasefire between Israel and Lebanon, which came into effect on Thursday, although the durability of this agreement remains uncertain.
Domestically, Pakistan’s current account surplus rose to $1.07 billion in March from $231 million in February, supported by a decline in trade deficits in goods and services and strong remittances, according to State Bank of Pakistan (SBP) data released on Thursday.
The surplus declined by 16% year-on-year and, on a cumulative basis, Pakistan recorded a current account surplus of $8 million in FY9MF26, compared to $1.674 billion in the same period of FY25. The data follows Pakistan’s receipt of funds from Saudi Arabia, which helped shore up foreign exchange reserves in anticipation of an upcoming loan repayment to the United Arab Emirates (UAE).
In the previous session on Thursday, the index rose 1,392.01 points (0.83%) to close at 169,911.95, after touching an intraday high of 170,899.16 and a low of 168,941.31.
