PSX: Stock surge as markets eye Iran, US truce

Buyers returned to the Pakistan Stock Exchange on Friday, lifting the benchmark KSE-100 index to 170,632.86 by 12pm, a gain of 133.92 points or 0.08 per cent. Traders were weighing the chances of a ceasefire between Washington and Tehran, which steadied sentiment after a sharp fall on Thursday. That decline saw the index shed 1,733.57 points, or 1.01 per cent, to close at 170,498.95, as crude prices rose, US-Iran talks stalled and a possible US diesel export ban raised concerns.

Gains were visible in automobile makers, cement producers, banks, explorers and power generators, with heavyweight stocks OGDC, POL, PPL, HBL, MCB, MEBL and UBL all trading higher. Business Recorder noted that these index-heavy shares were in positive territory during the session.

Beyond the local market, Saudi Arabia, Turkiye and Pakistan plan an urgent high-level meeting under their joint defence pact to discuss support for the kingdom amid attacks by Yemen's Houthis, while Tehran has sought to distance itself from its Houthi allies. Internationally, a bond selloff has driven long-term US bond yields to their highest in two decades, and Brent crude is trading around $105 and has stoked inflation worries.