KARACHI: The Pakistan Stock Exchange (PSX) witnessed a strong rally on Friday, with the benchmark KSE-100 Index climbing sharply as investor sentiment improved on expectations of easing tensions in the Middle East.
Read More: Positive momentum helps PSX gain nearly 1,400 points
The index reached an intraday high of 173,444.89 points, gaining 3,532.94 points or 2.08%, while also touching a low of 170,758.25, still significantly above the previous close of 169,911.95. Market participants attributed the upward momentum to renewed optimism surrounding diplomatic developments involving Iran and the United States.
Analysts noted that positive signals from US President Donald Trump, who suggested that a deal with Iran could be near, played a key role in boosting investor confidence. Reports of a possible reopening of the Strait of Hormuz further supported market sentiment, as it could ease global economic uncertainty.
Investor activity was also driven by a fear of missing out (FOMO), with traders rushing to build positions in anticipation of favourable developments. Additionally, a 10-day ceasefire between Israel and Lebanon provided further relief to global markets, although its sustainability remains uncertain.
On the domestic front, data from the State Bank of Pakistan showed that Pakistan’s current account surplus rose to $1.07 billion in March, supported by improved trade balances and strong remittance inflows.
The positive momentum follows continued financial support from Saudi Arabia, which has helped stabilise foreign exchange reserves ahead of upcoming external repayments.
Read More: PSX stays bullish, gains over 2,885 points
Market experts caution that while sentiment remains upbeat, volatility could persist depending on geopolitical developments and the outcome of ongoing diplomatic efforts in the region.