KSE-100 slips amid NEPRA tariff, weak earnings & rollover pressure

October 24, 2025 (MLN): The benchmark KSE-100 Index continued to trade in the red as of 11:25 am today, falling by 914 points or 0.56% to stand around 163,675.96, as investor sentiment weakened amid regulatory and corporate headwinds.

The index touched an intraday low of 163,045 points at 11:06 am, marking a decline of 1,548 points or 0.94%, reflecting persistent selling pressure across major sectors.

Market activity turned cautious after NEPRA’s extensive revisions to K-Electric’s Multi-Year Tariff (MYT) for FY2024–30 drew sharp criticism from the utility’s CEO, Syed Moonis Abdullah Alvi, who termed the “large-scale reductions and modifications” as unsustainable for operations.

The development triggered a sell-off in K-Electric’s stock, which plunged 5.59%, leading the volume chart with over 109 million shares traded.

Adding to the pressure, weak corporate earnings further dampened investor confidence. Kot Addu Power Company Limited (KAPCO) reported a 99.6% year-on-year plunge in profit to just Rs4.88 million, while Bank Islami Pakistan Limited (BIPL) posted a 50% drop in nine-month earnings to Rs5.07 billion.

Selling was pronounced in the banking, power, and cement sectors, with major draggers including BAHL (-4.01%), MEBL, UBL, LUCK, and NBP. Meanwhile, PSX Limited (+3.19%), EngroH, and Airlink provided limited upside support.

Total market turnover stood at 416 million shares with a traded value of Rs11.65 billion, sharply lower compared to the previous session.

Analysts attribute the decline to a mix of profit-taking, disappointing earnings, and regulatory uncertainty following the revised KE tariff, as investors adopt a cautious stance ahead of rollover week.

At current levels, the KSE-100 remains up over 30% in FY25 and 42% in CY25, despite the ongoing correction.

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