KARACHI, Jan. 17 -- The Pakistan Stock Exchange (PSX) witnessed a strong recovery on Friday, driven by easing geopolitical tensions and robust year-on-year growth in large-scale manufacturing, as investors returned to the market after days of cautious trading.

Read More: PSX drops 1,113 points on geopolitical tensions

Investor sentiment improved following US President Donald Trump's signals that the crackdown on protesters in Iran was easing, reducing fears of a wider regional military conflict and potential disruptions to oil supplies. This prompted broad-based buying across key sectors, including oil and gas, fertilisers, and banking.

The benchmark KSE-100 index surged 3,642.49 points, or 2.01 per cent, to close at 185,099.83, suppor...