Pakistan Stock Exchange (PSX) witnessed renewed selling pressure on Monday as investors remained cautious amid escalating tensions between the United States and Iran, while the start of the roll-over period added to market volatility.
The benchmark KSE-100 Index closed at 167,691.08 points, down 5,478.63 points, or 3.16%, compared with the previous close of 173,169.71 points. During intraday trading, the index touched a high of 174,336.85 points and a low of 166,886.63 points.
Market analysts said investor sentiment remained subdued due to geopolitical uncertainty and the absence of near-term positive triggers. Director Mayari Securities Huzaifa Riaz noted that cautious positioning by investors, combined with the roll-over week, contributed to heightened volatility and downward pressure on equities.
Meanwhile, US President Donald Trump recently indicated he would decide within days whether to order strikes on Iran if no nuclear agreement is reached. Reports also suggested military options included a potential attack targeting Iran’s Supreme Leader Ali Khamenei. Indirect talks between the two countries have been held in Oman and Switzerland, with further discussions expected.
Economic data released by the State Bank of Pakistan (SBP) showed profit and dividend repatriation by foreign investors rose to $1.677 billion during the first seven months of FY2025-26, compared with $1.328 billion in the same period last year. In January alone, repatriation stood at $118.9 million, reflecting a gradual normalisation of capital outflows alongside improved foreign exchange reserves and a stabilising external account.
Pakistan recorded a current account surplus of $121 million in January, supported by strong remittances and lower imports. However, the cumulative current account balance showed a deficit of $1.07 billion in 7MFY26 compared with a surplus of $564 million a year earlier, mainly due to import normalisation amid economic recovery.
SBP data further indicated that the power sector registered the largest increase in repatriated earnings, followed by notable outflows in the financial sector.
Separately, the Pakistan Bureau of Statistics (PBS) reported that weekly inflation, measured by the Sensitive Price Indicator (SPI), increased by 1.16% for the combined consumption group during the week ended February 19. The SPI rose to 335.67 points from 331.81 points a week earlier, while year-on-year inflation stood at 5.19%.
In the previous trading session on Friday, the KSE-100 Index had gained 999.42 points, or 0.58%, to close at 173,169.71 points.