ISLAMABAD: The Pakistan Stock Exchange (PSX) traded sharply higher on Friday as optimism surrounding a possible US-Iran agreement and declining oil prices improved investor sentiment. Meanwhile, investors closely monitored the federal budget for FY2026-27, which is expected to shape the market’s long-term direction.
During intraday trading, the benchmark KSE-100 Index climbed to 173,093.45 points, gaining 3,389.85 points or 2 percent. The index also touched a low of 170,946.54 points, which still reflected a gain of 1,242.94 points or 0.73 percent compared to the previous close of 169,703.60.
Global Developments Lift Market Sentiment
Market analysts attributed the rally to easing geopolitical concerns and a decline in international oil prices. Investors reacted positively after US President Donald Trump indicated that planned military strikes against Iran had been delayed as negotiations moved closer to a potential agreement.
As a result, global stock markets advanced while oil prices fell to two-month lows. Brent crude futures declined 1.8 percent to $88.76 per barrel after dropping nearly 3 percent in the previous session.
Regional markets also posted strong gains. Japan’s Nikkei rose 3.6 percent, South Korea’s KOSPI surged 7.8 percent, and MSCI’s Asia-Pacific index outside Japan jumped 3.7 percent.
Investors Await Budget Announcements
At the same time, investors remained focused on the federal budget scheduled for presentation in the National Assembly. The proposed budget is expected to have an outlay of around Rs17.5 trillion.
Sources indicate the government may set a tax revenue target of Rs15.267 trillion, allocate Rs7.824 trillion for debt servicing, and earmark approximately Rs3 trillion for defence spending.
Analysts believe budget measures, taxation policies, and development spending plans will play a crucial role in determining the future direction of Pakistan’s equity market.
