Trading in shares of at least four companies listed at the Karachi Stock Exchange (KSE) has been suspended for the last couple of months. The four firms belong to the banking, textile and shipping sectors and have been under fire since February 18 this year for not complying with orders of the KSE management.
Prudential Investment Bank Limited, Harum Textile Mills Limited, National Fibers Limited and Tri-Star Shipping Lines Limited are the non-complaint firms. Through Notices No KSE/N-768, -769, -770 and -771 issued on February 18, the authorities at the country’s largest bourse had asked the four companies to remove the cause of suspension in the trading of their shares in compliance with the relevant rules, but in vain.
Resultantly, the KSE management is left with no option but to extend their suspension period for a further 60-day period starting from April 23 and 25. These companies have “not so far removed the cause of suspension of trading in their shares, the management of the Karachi Stock Exchange Limited in the interest of trade and public… has decided that trading in the shares of (these companies) shall remain suspended for a further period of 60 days,” read the KSE notices, numbering KSE/N-2116, -2117, -2118 and -2119, issued separately to the defiant firms.
The KSE action came under the Listing Regulation No 5(2) (ii) and Section 9(7) of the Securities and Exchange Ordinance, 1969. It is believed that the move would render a fresh blow to the equity market where daily volumes are already witnessing a declining trend, ranging between 47 and 70 million shares, despite the introduction of much-awaited Margin Trading System (MTS).
On December 15 last year, the KSE had for months kept suspended trading in the shares of Pakistan Industries and Commercial Leasing Limited, Dadabhoy Sack Limited, Business and Industrial Insurance Company, Norrie Textile Mills, Southern Networks Limited, Nina Industries, Nazir Cotton Mills, Dominion Stock Fund, Investee Mutual Fund, Pakistan Northern Insurance Company Limited, Awan Textile Mills, Taga Pakistan, Pakistan Diaries, Regal Ceramics, Junaid Cotton Mills, Alif Textile Industries, Apex Fabrics, Myfip Video Industries, Mehran Jute Mills, Azmat Textile Mills, Bahawalpur Textile Mills and Kaiser Arts and Krafts.
