The equity market came under heavy pressure on Monday, with investors remaining cautious amid escalating tensions between the United States and Iran, while the start of the roll-over period added to volatility.

The benchmark Pakistan Stock Exchange (PSX) KSE-100 Index closed at 167,691.08 points, falling 5,478.63 points or 3.16% from the previous session’s close of 173,169.71.

During intraday trading, the index touched a high of 174,336.85 before sliding to a low of 166,886.63, reflecting sharp swings throughout the session.

Market analysts attributed the decline to geopolitical uncertainty. Huzaifa Riaz, Director at Mayari Securities, said investors adopted a cautious stance due to rising US-Iran tensions and the absence of strong near-term market triggers.

US President Donald Trump recently stated he would decide within “10 to 15 days” whether to order strikes on Iran if nuclear negotiations fail.

Reports indicated that military options were presented to him, including potential actions targeting Iran’s leadership.

On the economic front, data from the State Bank of Pakistan (SBP) showed that profit and dividend repatriation by foreign investors rose to $1.677 billion during the first seven months of FY26, compared to $1.328 billion a year earlier.

Pakistan recorded a current account surplus of $121 million in January, supported by strong remittances and controlled imports.

However, the cumulative current account balance showed a deficit of $1.07 billion in 7MFY26, compared to a $564 million surplus in the same period last year.

Meanwhile, weekly inflation measured by the Sensitive Price Indicator (SPI) rose 1.16% for the week ended February 19, according to the Pakistan Bureau of Statistics (PBS), with year-on-year inflation recorded at 5.19%.

The previous session had seen the KSE-100 gain nearly 1,000 points, but Monday’s sharp sell-off reversed those gains as geopolitical concerns dominated investor sentiment.