6 Listed Companies Asked for Reasons Behind ‘Substantial’ Price Increase in July

The Pakistan Stock Exchange (PSX) has asked six listed firms to explain the reasons behind the “substantial” jump in their share prices between July 3 and July 31.

Letters were sent by PSX Head of Listed Companies Compliance Hafiz Maqsood Munshi on Tuesday to Meezan Bank Limited (PSX: MEBL), National Refinery Limited (PSX: NRL), Honda Atlas Cars Pakistan Limited (PSX: HCAR), Agritech Limited (PSX: AGL), Lalpir Power Limited (PSX: LPL), and Escorts Investment Bank Limited (PSX: ESBL), whose stock prices rose significantly in July.

Meezan Bank Limited is one of the six companies, one of the largest listed firms in terms of total share value on the main board. The PSX has requested Meezan Bank to provide any meaningful information that may have caused a significant increase in its pricing over the period mentioned above.

The PSX also asked NRL to explain a similar increase in its share price between July 3 and July 31. During the review period, the company’s share price increased by 41.3 percent.

HCAR was sent the same query to explain the reason behind its shares going up. Pertinently, its share price rose 43.6 percent during 3-31 July.

PSX has also sought appropriate replies for any factors that may have caused the roughly 50 percent increase in AGL, LPL, and ESBL share prices.

This move by the main board is likely a routine exercise to ensure the protection of investors’ interests in listed companies. In principle, movement in share price is considered unusual when it is abnormally high or low in comparison to the index movement.

Source: Pro Pakistani