ISLAMABAD: Stocks rallied on Friday as improving geopolitical sentiment boosted investor confidence, pushing the benchmark KSE-100 Index sharply higher during intraday trade. The index climbed to a high of 173,444.89, gaining 3,532.94 points or 2.08%, while the low stood at 170,758.25, still up 846.30 points from the previous close of 169,911.95.
Market participants attributed the surge to growing optimism that a potential agreement could ease tensions in the Middle East. According to Ahfaz Mustafa, CEO of Ismail Iqbal Securities, expectations of a deal and ongoing diplomatic activity have triggered a sense of urgency among investors, prompting them to rebuild positions ahead of anticipated positive developments.
Meanwhile, Donald Trump struck an optimistic tone, stating that prospects for a deal with Iran were “looking very good” and suggesting talks could resume over the weekend. He also indicated that any agreement might include reopening the Strait of Hormuz, although Tehran has not confirmed such concessions. In contrast, Pete Hegseth warned that failure to reach an agreement could result in blockades and strikes on Iranian infrastructure.
Additionally, reports suggested that Gulf Arab and European leaders remain cautious, with concerns that a lasting agreement could take months. Nonetheless, markets found support in a 10-day ceasefire between Israel and Lebanon that took effect a day earlier, easing immediate regional tensions.
On the domestic front, data from the State Bank of Pakistan showed the current account surplus rose to $1.07 billion in March, supported by lower trade deficits and strong remittances. However, the surplus narrowed on a yearly basis, reflecting ongoing external sector challenges.
Overall, renewed diplomatic momentum and improving economic indicators helped sustain bullish sentiment at the local bourse.
