The PSX KSE-100 Index drops sharply on Monday, falling 3.16% as investors reacted to escalating US-Iran tensions and increased market volatility.
The Pakistan Stock Exchange’s benchmark index settled at 167,691.08 points, down 5,478.63 points from the previous close of 173,169.71. Intraday, the index touched a high of 174,336.85 before sliding to a low of 166,886.63.
Investor sentiment remained cautious due to rising tensions between the United States and Iran. Reports indicated that US President Donald Trump would decide within days whether to authorise strikes on Iran if no nuclear agreement is reached.
While indirect talks between Washington and Tehran have taken place in Oman and Switzerland, no convergence has been reported so far.
At the same time, the start of the rollover period increased intraday volatility. The lack of a strong near-term trigger kept risk appetite subdued across markets.
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State Bank of Pakistan (SBP) data showed that profit and dividend repatriation by foreign investors rose to $1.677 billion in 7MFY26, compared with $1.328 billion in the same period last year. January alone saw repatriation of $118.9 million.
Pakistan also recorded a current account surplus of $121 million in January, supported by strong remittances and lower imports. However, the cumulative position for 7MFY26 reflected a $1.07 billion deficit, compared with a surplus a year earlier.
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The power sector recorded the largest increase in repatriated earnings, followed by the financial sector, according to SBP figures.
Meanwhile, weekly inflation measured by the Sensitive Price Indicator (SPI) rose 1.16% for the week ended February 19. Year-on-year SPI inflation stood at 5.19%.
In the previous trading session, the KSE-100 had gained 999.42 points, highlighting the sharp reversal in sentiment. Market participants are expected to closely monitor geopolitical developments and macroeconomic data in the coming sessions.
