KARACHI: The Pakistan Stock Exchange witnessed a strong rally on Friday, as improving expectations around easing tensions in the Middle East boosted investor confidence and risk-taking.
The benchmark KSE-100 Index surged during intraday trading, reaching a high of 173,472.85—up 3,560.99 points, or 2.1%. At its lowest, the index still showed gains, touching 170,758.25, reflecting an increase of 846.30 points (0.50%) compared to the previous close of 169,911.95.
Market participants appeared increasingly optimistic that diplomatic efforts could lead to a resolution in the region. This sentiment was further fueled by comments from Donald Trump, who indicated that negotiations between Washington and Tehran were progressing positively and might resume soon. His remarks raised hopes of a broader de-escalation, including the potential reopening of the strategically vital Strait of Hormuz.
Analysts noted that the possibility of a breakthrough has triggered a “fear of missing out” among investors, prompting them to re-enter the market and build positions ahead of any positive developments. However, caution remains as officials like Pete Hegseth warned of serious consequences if tensions escalate further.
Reports also suggest that leaders from Gulf and European nations believe a lasting agreement may take time, even as they push for interim measures such as extending ceasefires and ensuring uninterrupted energy flows.
Encouraging signals from the region included a temporary ceasefire between Israel and Lebanon, which provided additional support to market sentiment, though uncertainties persist regarding its sustainability.
On the domestic side, data from the State Bank of Pakistan showed that Pakistan’s current account posted a surplus of $1.07 billion in March, up from $231 million in February. The improvement was driven by reduced trade deficits and steady remittance inflows. However, on a year-on-year basis, the surplus declined, and cumulative figures for the fiscal year remained significantly lower compared to the previous year.
The positive economic data, along with recent financial inflows from Saudi Arabia, helped strengthen external reserves and added further support to investor sentiment.
In the previous trading session, the KSE-100 Index had already gained 1,392.01 points (0.83%) to close at 169,911.95, setting the stage for Friday’s upward momentum.
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