Listed companies asked for reasons behind ‘unusual’ price moves

KARACHI: Pakistan Stock Exchange (PSX) has asked various companies to explain the reasons behind what it says unusual movement in prices and turnover of their shares during the ongoing week, it was learnt on Thursday.

In a notice, PSX asked them “to respond promptly” and share with it “details of any matter or development that is or may be relevant to the unusual movements or a statement of the fact that it is not aware of any such matter or development”. The companies that have been served notices include Aisha Steel Mills, SS Oil Mills, Saritow Spinning Mills, Rupali Polyester, Punjab Oil Mills, First Prudential Modaraba, Nimir Resins, Pakistan Engineering Company, Netsol Technologies, Khurshid Spinning Mills, Ideal Spinning Mills, Hira Textile Mills, Data Agro, Cyan Limited, Crescent Textile Mills, and Abddullah Shah Ghazi Sugar Mills.

Turnover of Punjab Oil Mills witnessed weird movement from 800 shares on Monday to 5,900 shares on Tuesday. Its trading came back to 900 shares on Wednesday. The company’s share price was down 2.34 percent to close at Rs231.33 on Wednesday compared to Rs236.88 on Monday.

Share price of Aisha Steel Mills rose 1.14 percent to close at Rs23.94 on Wednesday compared to Rs23.67 on Monday. Turnover was 1.8 million shares on Monday, 10.74 million shares on Tuesday and 8.7 million shares on Wednesday. SS Oil Mills started the week at Rs100.33 and closed on Wednesday at Rs94.5, down 5.8 percent in three days. Turnover was 11,000 shares on Monday, 8,000 shares on Tuesday and 4,000 shares on Wednesday.

Saritow Spinning started the week at Rs9.68 and closed on Wednesday at Rs10, up 3.3 percent. Turnover was 64,500 shares on Monday, 243,000 shares on Tuesday and 82,000 shares on Wednesday. Rupali Polyester started the week at Rs31.9 and closed on Wednesday at Rs31.4. Turnover was 7,500 shares on Monday, 15,500 shares on Tuesday and 8,500 shares on Wednesday. Nimir Resins started the week at Rs12.73 and closed on Wednesday at Rs12.93, up 1.5 percent. Turnover was 4.2 million shares on Monday, 2.4 million shares on Tuesday and 3.3 million shares on Wednesday.

Netsol Technologies started the week at Rs182.06 and closed on Wednesday at Rs185.33, up 1.8 percent. Turnover was 3.2 million shares on Monday, 1.1 million shares on Tuesday and 5.2 million shares on Wednesday. Cyan Limited started the week at Rs49.9 and closed on Wednesday at Rs46.96, down 5.89 percent. Turnover was 74,000 shares on Monday, 73,000 shares on Tuesday and 80,500 shares on Wednesday.

Analysts termed the notices as routine exercise of the PSX to ensure protection of investors’ interest. “A movement in share price is considered unusual when it is abnormally high or low compared with the index movement,” said analyst Ahsan Mehanti from Arif Habib Limited. “Fundamentals have improved tremendously post-COVID, and there has been growth in textile and cement exports, oil prices and flow of remittances. When fundamentals improve it reflects on share prices of the companies.”

However, Mehanti said PSX can impose penalties if it finds violation of securities trading laws and regulations.