Karachi: Landmark Spinning Industries Limited (LMSM) has reported a significant increase in its share price, according to a recent filing with the Pakistan Stock Exchange (PSX). This development comes amid relatively stable trading volumes, prompting scrutiny under local securities regulations.

The surge in LMSM’s share price was first noted following a formal inquiry by the PSX, triggered by the unusual price movement without corresponding increases in trading volume. This inquiry is in line with the obligations set forth in Section 97 of the Securities Act 2015 and clause 5.6.3 of the PSX Regulations, which require a company to respond if there are notable fluctuations in price or trading volume.

In a letter dated August 20, 2024, Landmark Spinning Industries responded to the PSX’s concerns, stating that there has been no material information or corporate announcements that could have driven the price increase. According to information available from the Pakistan Stock Exchange (PSX), the management of LMSM also confirmed that they are not aware of any rumors or speculations that could influence the market value of their shares.

The company further clarified that all significant corporate activities, such as the joint petition for the court's approval of the Scheme of Arrangement, have been fully disclosed in their Progress Report for the Quarter Ended 30th June 2024. Regular submissions of quarterly and half-yearly reports to the Securities and Exchange Commission of Pakistan (SECP) and PSX were also reiterated as part of their compliance.

Despite these assurances, the substantial rise in LMSM’s share price remains unexplained, leaving market watchers and investors to speculate about the underlying causes. The situation highlights the ongoing challenges in maintaining transparency and stability in the securities market, especially when significant price movements occur without clear drivers.