PSX asks five firms to explain substantial price change

The compliance department of the Pakistan Stock Exchange (PSX) has sought a clarification from five listed companies for a “substantial” change in their share prices between March 16 and April 13. One of the five companies is Pakistan Services Ltd (PSEL), which owns and manages the chain of Pearl Continental hotels in Pakistan. It has a free-float of 60 per cent, which means the company’s sponsors control only 40pc shareholding while the rest is available to the public for trading. “The PSX has observed that the price in the shares of PSEL has decreased substantially during the period from March 16 and April 13,” said a letter to the company sent by PSX Head of Listed Companies Compliance Hafiz Maqsood Munshi on April 20. Under the prevailing Securities Act, listed companies are required to promptly disclose to the general public if it observes any unusual movement in the price or volume of its traded securities. The company must share with the general public the details of any matter or development that is — or may possibly be — relevant to the unusual movement in price or volumes.