PSX jumps nearly 2,000 points amid budget expectations, US-Iran deal optimism

KARACHI – Pakistan Stock Exchange (PSX) recorded a significant recovery on Friday as investors seem optimistic ahead of federal budget 2026-27 which will be presented today. The KSE-100 index gained 1,955.29 points to reach 171,659.29 points, reflecting a positive change of 1.15 percent compared to previous close of 169,703.60 points. Market activity remained strong, with total traded volume recorded at 120,208,518 shares and a traded value of approximately 9.72 billion till the market was suspended due to Friday prayer break. Experts also attributed the bullish trend to growing hopes for a possible deal between the US and Iran to end the conflict. US President Donald Trump said an agreement could be signed as early as this weekend, while Iran stated that no final decision has been made on any potential deal. If finalized, the agreement would represent a major diplomatic development aimed at ending the ongoing three-month conflict, which has resulted in thousands of deaths and driven global energy prices higher after Iran largely restricted shipping through the Strait of Hormuz. On the other hand, oil prices dropped over 2% on Friday, continuing losses from the previous session after Trump called off planned strikes on Iran, easing concerns of further escalation following earlier reciprocal attacks. Brent crude futures declined by $2.11, or 2.3%, to $88.27 per barrel at 0640 GMT, while U.S. West Texas Intermediate (WTI) fell $1.90, or 2.2%, to $85.81 per barrel.