KARACHI: Amid bearish investor sentiment, the Pakistan Stock Exchange (PSX) remained highly volatile on Friday, with the benchmark KSE-100 index staying in negative territory throughout the first session, trading below 166,500.

In the final half-hour of the second session, however, trading screens turned sharply green, reversing earlier losses on renewed buying interest, mainly in the banking and cement sectors. The rally was triggered by investor speculation over a visit by Iran’s foreign minister, which some mistook for the start of a second round of US-Iran peace talks.

As a result, the index closed the session in positive territory.

According to Topline Securities Ltd, the KSE-100 index opened lower and fell to an intraday low of 2,792.66, or 1.65 per cent, as investors reacted to delays in US-Iran negotiations and continued US pressure, including the blockade of the Strait of Hormuz.

A late-session recovery followed reports that Iran’s Foreign Minister Abbas Araghchi was expected to arrive in Islamabad on Friday night for bilateral consultations, which investors interpreted as a potential diplomatic development.

Consequently, the index witnessed aggressive value hunting, rising as much as 2,467.95 points to an intraday high of 171,641.66 before settling at 170,672.04, up 1,498.66 points, or 0.89 per cent.

Iran’s official news agency, IRNA, said the foreign minister would undertake a regional tour, visiting Islamabad, Muscat and Moscow for bilateral consultations and discussions on regional developments.

The market drew some strength from expectations of a status quo in monetary policy. A Reuters poll indicated that the State Bank of Pakistan’s Monetary Policy Committee is likely to keep the key policy rate unchanged at 10.5pc at its meeting on Monday.

Six of 10 analysts surveyed expect no change, while three foresee a 50-basis-point increase and one anticipates a 100-basis-point hike, reflecting concerns over rising oil prices linked to Middle East tensions.

Among major contributors, Meezan Bank, United Bank, Oil and Gas Development Company, National Bank and Bank of Punjab collectively added 765 points to the index. On the downside, Bank Al-Habib, Faysal Bank, MCB Bank, Habib Metropolitan Bank Ltd and Engro Fertiliser collectively shaved off 158 points.

Investor participation weakened, with trading volume falling 9.7pc to 1.19 billion shares, though traded value rose 28.63pc to Rs39.67bn.

Published in Dawn, April 25th, 2026