The Pakistan Stock Exchange rally gathered pace on Friday as investors returned to risk assets, hoping that a deal to ease Middle East tensions could be getting closer. The benchmark KSE-100 Index traded as high as 173,472.85, up 3,560.9 points or 2.1%, after closing the previous session at 169,911.95. Midday public market reporting also showed the PSX up more than 2,400 points during Friday trade.
Sentiment improved after Donald Trump said it was “looking very good” that Washington could reach a deal with Iran and that talks could resume this weekend. At the same time, markets took some comfort from a 10-day ceasefire in Lebanon that went into effect on Thursday, even though reporting suggests the truce remains fragile.
The market also drew support from domestic data. Pakistan’s current account surplus widened to $1.07 billion in March from $231 million in February, and separate public reporting on Thursday matched that figure.
Investors responded to signs that the regional crisis might not worsen immediately. Trump also claimed a future Iran deal could reopen the Strait of Hormuz, although there has been no public Iranian confirmation on key U.S. demands such as enriched uranium.
That mix of optimism and uncertainty shaped Friday’s trading mood. Oil-market reporting also showed prices falling as traders reacted to hopes of easing tensions and a broader diplomatic thaw.
Current Account Data Adds Domestic Support
The rally did not rest only on foreign headlines. Pakistan’s March current account surplus gave investors another reason to buy, especially after weeks of pressure tied to reserves and external financing.
The surplus was supported by lower goods and services trade deficits and strong remittances. However, it also notes that the figure was down 16% year-on-year and that Pakistan posted a surplus of just $8 million in the first nine months of FY26, compared with $1.674 billion a year earlier.
That means Friday’s enthusiasm came from an improvement in the short-term picture, not from a complete turnaround in external accounts.
The market move to Pakistan’s recent receipt of Saudi funds, which helped strengthen foreign exchange buffers ahead of an upcoming repayment to the UAE. That backdrop matters because reserve pressure has weighed on confidence in recent weeks.
Read: Trump Says Iran Deal In Islamabad Could Prompt Visit
Pakistan still faces important external obligations. It says reserves fell after a sovereign Eurobond repayment, underscoring that short-term support and positive current account data have not removed all pressure from the economy.
Friday’s move also extended momentum from the previous session. The KSE-100 had already risen 1,392.01 points, or 0.83%, on Thursday, closing at 169,911.95.
Taken together, the latest action suggests investors are trading on two hopes at once: that regional diplomacy will prevent a deeper shock, and that Pakistan’s near-term external position may be stabilising enough to support equities.
