PSX surges over 4,000 points on improved macroeconomic indicators, US–Iran talks optimism

Buying momentum continued at the Pakistan Stock Exchange on Friday, with the benchmark KSE-100 Index gaining more than 4,000 points, supported by improved macroeconomic indicators and expectations of progress in US-Iran talks.

According to PSX data, the index opened higher and climbed to an intraday peak of 173,444.89, up over 3,400 points by 10:45 am. Broad-based buying was observed in major sectors, including oil and gas exploration companies, oil marketing companies, automobiles, cement, commercial banks, and chemicals. 

At close, the index settled at 173,939.01, with an increase of 4,027.06 points or 2.37% from the previous close. 

Investor sentiment was also supported by Pakistan and Saudi Arabia signing an agreement to extend a $3 billion deposit placed with the State Bank of Pakistan by the Saudi Fund for Development.

On the external front, Pakistan posted a current account surplus of $1.07 billion in March 2026, compared to $231 million in February and $1.27 billion in March 2025, according to data compiled by Arif Habib Limited based on State Bank of Pakistan figures.

However, on a cumulative basis, the current account recorded a surplus of $8 million in the first nine months of FY2026, significantly lower than $1.67 billion in the same period last year.

The rally followed a positive close on Thursday, when the KSE-100 Index rose 1,392.01 points, or 0.83%, to settle at 169,911.95, compared to 168,519.94 in the previous session.

Globally, Asian stocks headed for a second week of strong gains on Friday while oil prices were pinned below $100 a barrel ​with investors dialling back risk ahead of a crucial weekend that could pave the way for a near-term resolution to the Middle East war.

A ‌10-day ceasefire between Lebanon and Israel went into effect on Thursday and President Donald Trump said the next meeting between the U.S. and Iran may take place over the weekend, when their current ceasefire is due to expire.

Investors have been quick to take an optimistic view on any signs of denouement this month, even though the Strait of Hormuz - through which a fifth of the ​world's oil and gas supply typically flows - remains largely closed.

That optimism has kept oil prices below $100 per barrel, though they remain well above the pre-war ​levels. Brent crude futures dropped more than 1% to $98.14 a barrel. U.S. West Texas Intermediate crude futures fell 1.4% to $93.37 a barrel.

In ⁠stocks, MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.83% as investors locked in profits after a blistering rally this month.

U.S. futures were flat in Asian hours while European futures pointed to a subdued open. The U.S. benchmark S&P 500 and the tech-heavy Nasdaq rose modestly to record closing highs for a second straight day on Thursday.