KARACHI: The Pakistan Stock Exchange (PSX) faced renewed selling pressure on Monday as investors reacted cautiously to escalating tensions between the United States and Iran, while the start of the roll-over period heightened intraday volatility.
The benchmark KSE-100 Index fluctuated sharply, reaching a high of 174,336.85, up 1,167.14 points or 0.67%, before plunging to a low of 166,886.63, down 6,283.08 points or 3.63%, compared with the previous close of 173,169.71. Analysts attributed the wide swings to nervous investor sentiment and limited near-term triggers.
Huzaifa Riaz, Director at Mayari Securities (Pvt) Limited, said investors adopted cautious positioning due to rising geopolitical risks. He added that the absence of positive catalysts, combined with the commencement of the roll-over period, amplified volatility and kept the market bias negative.
Meanwhile, US President Donald Trump said he would decide within “10 or 15 days” whether to order strikes on Iran if nuclear talks fail. Reports indicated that US officials reviewed options that included targeting Iran’s Supreme Leader Ayatollah Ali Khamenei. Although Washington and Tehran held indirect talks in Oman and Switzerland, their positions remain far apart ahead of further negotiations.
On the economic front, the State Bank of Pakistan reported that foreign investors repatriated $1.677 billion in profits and dividends during 7MFY26, compared with $1.328 billion a year earlier. Additionally, Pakistan posted a $121 million current account surplus in January, though the cumulative deficit reached $1.07 billion for 7MFY26.
Furthermore, weekly inflation rose 1.16%, with the Sensitive Price Indicator increasing to 335.67 points, according to the Pakistan Bureau of Statistics.
