KARACHI: The Pakistan Stock Exchange (PSX) extended its winning streak for a fourth consecutive session on Friday, with the benchmark KSE100 index closing above the 185,000-point mark as improving geopolitical situation and macroeconomic sentiment continued to support equities.

The benchmark index gained 0.5 per cent, or 930 points, to settle at 185,464, moving closer to its record high of more than 189,000 reached on Jan23.

According to Topline Securities, investor confidence remained buoyant amid lower international oil prices, which areexpected to ease pressure on Pakistan`s external account.

The index was lifted mainly by United Bank Ltd, Oil and Gas Development Company, Fauji Fertiliser Company,Mari Energies and Pakistan Petroleum Ltd, which together contributed around 611 points.

The exploration and production sector dominated trading by value. OGDC led with transactionsworth Rs3.08 billion, followed by Mari Energies at Rs2.43bn and Pakistan Petroleum at Rs1.81bn.

Despite the positive close, overall market participation weakened.

Trading volume declined18pc to 815 million shares, while traded value fell 23.6pc to Rs42.6bn.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the market recorded a mixed session, with short-term profit-tak-ing capping gains, while selective buying in banking and energy stocks kept the benchmark in positive territory.

He noted that investors remained cautious ahead of the weekend, although optimism about the economic outlook continued to underpin sentiment.

On the diplomatic front, Prime Minister Shehbaz Sharif and Army Chief Field Marshal Asim Munir led a high-level delegation to Tehran to attend the funeral of Iran`s late supreme leader.

Analysts expect easing inflation, lower oil prices and growing expectations of monetary easing to remain supportive for equities, with the benchmark index seen testing fresh record highs in the coming sessions. However, they cautioned that geopolitical developments and the State Bank of Pakistan`s upcoming monetary policy decision would remain key drivers of market direction in the near term.