Stocks rose on Friday as investors chased the upside on fresh optimism that a deal to end the Middle East war could be within reach, with risk appetite further lifted by hopes of a wider 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%) 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 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, speaking to Geo.tv.
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.
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 robust remittances, according to State Bank of Pakistan (SBP) data released on Thursday.
The surplus fell 16% year-on-year, and on a cumulative basis Pakistan recorded a current account surplus of $8 million in 9MFY26, down from $1.674 billion in the same period of FY25. The data followed Pakistan’s receipt of funds from Saudi Arabia, which has helped shore up foreign exchange buffers ahead 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.
