Stocks rose on Friday as investors chased gains on fresh optimism that a deal to end the war in the Middle East could be within reach, with risk appetite further boosted 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%) against the previous close of 169,911.95.
“Expectations of a Middle East deal and constant diplomatic shifts are creating a sense of FOMO among investors, who are rushing to build positions again ahead of potential good news,” Ahfaz Mustafa, chief executive officer (CEO) of Ismail Iqbal Securities, said in a statement to geo.tv.
Sentiment improved after US President Donald Trump struck an optimistic tone, saying it “looked very good” that Washington could reach a deal with Iran and that talks could resume this weekend. He also stated that the deal would include opening the Strait of Hormuz, although Iran has given no public indication that it would hand over its stockpile of enriched uranium.
US Defense Secretary Pete Hegseth previously took a harder line, warning that if Iran “chooses wrong” it would face a blockade and attacks on infrastructure.
Bloomberg reported that some Arab and European Gulf leaders fear a lasting deal could take months and have called for the truce to be extended, pushing for Hormuz to reopen quickly amid concerns about broader economic consequences.
Markets were also comforted by the 10-day ceasefire between Israel and Lebanon that came into effect on Thursday, although the durability of the deal remains uncertain.
On the domestic front, Pakistan’s current account surplus rose to $1.07 billion in March from $231 million in February, supported by lower goods and services trade deficits and strong remittances, according to State Bank of Pakistan (SBP) data released on Thursday.
The surplus fell 16% year-on-year and cumulatively, Pakistan posted a current account surplus of $8 million in FY26, against $1.674 billion in the same period of FY25. The data came following Pakistan’s receipt of funds from Saudi Arabia, which has helped shore up foreign exchange reserves ahead of the upcoming repayment of a loan 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.
