Significant increase witnessed in PIA shares ahead of auction
Shares of Pakistan International Airlines (PIA) have
surged almost 100% over the past two months, prompting regulatory scrutiny. The
Pakistan Stock Exchange (PSX) issued a
notice to the airline seeking clarification over the sharp increase in share
price and unusually high trading volumes.
Market participants widely believe
the rally is linked to the government’s upcoming auction of the national
carrier. In response to the PSX inquiry, PIA stated that it is not aware of any
material developments or undisclosed information that could have influenced the
stock’s performance. Despite this clarification, the upward momentum in the
airline’s shares has continued, reflecting strong investor interest.
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PIA’s share price has risen from around Rs23 two months ago to nearly Rs46, while trading volumes have increased significantly, signaling heightened market activity. Analysts attribute the rapid gains largely to speculation surrounding the privatization process and expectations of potential strategic changes.
The government has announced that
the auction of PIA will be held on December 23, encouraging investors to
position themselves ahead of the sale. Market experts note that such
anticipation often fuels short-term rallies, though it can also increase
volatility.
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Despite the sharp rise, PIA reiterated that trading has not been influenced by any insider information. Regulators are continuing to monitor the situation to ensure market transparency, while investors remain cautiously optimistic as the auction date draws closer.
Source: Daily Times